Norimasa Shimomura
Jakarta ● Saturday, December 23, 2023 Energy transition
Indonesia is committed to redefining its energy landscape by embracing a low-carbon future, an equitable energy transition, a critical approach to the urgent decarbonization of the energy sector and the challenges of climate change.
This change in attitude attracted much attention at the G20 Bali Summit on November 15, 2022, where Indonesia signed a joint declaration on the Just Energy Transition Partnership (JETP) with the Japan-led International Partners Group (IPG). American situation. This historic agreement represents a commitment of $20 billion in public and private financing aimed at reducing energy sector emissions by 290 million metric tons by 2030 and increasing the use of renewable energy by 34%
. Ambitious intentions for Indonesia's energy transition beyond national contributions.
In the year On November 21, 2023, the Indonesian JTP Secretariat launched the Comprehensive Policy and Investment Plan (CIPP). This comprehensive document outlines a comprehensive energy transition path for the energy sector, examines financing needs, makes recommendations for policy reforms and provides a key framework for a just transition.
The JETP Indonesia Secretariat has asked UNDP to lead the JETP Working Group on Just Transition and to collaborate with five other international and national agencies. The task force's first task was to develop a just transition framework as a tool to evaluate and manage the energy transition process to ensure sustainability and equity.
Understanding the concept of “fairness” in the context of power transfer involves considering two important perspectives.
First, the term refers to a series of fundamental changes that involve both risks and opportunities. For example, the retirement of coal-fired power plants can lead to socioeconomic changes that affect property owners, workers, supply chains, and the communities in which they live.
Likewise, environmental changes are accompanied by new investments in renewable energy projects. These changes, despite inherent risks, offer opportunities not only to expand the economy and improve inequality, but also to combat climate change and create a greener, more sustainable future.
Second, the impact of energy transition investments among stakeholders varies depending on their current socioeconomic capacity to address risks and exploit opportunities. Therefore, the impacts of the transition of power may be unevenly distributed, disproportionately impacting and marginalizing vulnerable groups.
With this in mind, the JTP Working Group on Just Transition has developed a comprehensive definition of just transition. Indeed, it is a prerequisite to ensure that the social, economic and environmental risks and opportunities arising from the energy transition are fairly shared and taken into consideration by interested parties.
Furthermore, it highlights the positive ability of vulnerable stakeholders to manage risks and exploit opportunities. This definition goes beyond simple harm prevention; It is promising and strives to improve socioeconomic and environmental conditions.
The JT Framework provides principles and standards to ensure that the social, economic and environmental risks and investment opportunities of the future energy transition are shared equitably among stakeholders.
With the principles of equity at the heart of human rights, gender equality and accountability, the JT Framework strongly supports the commitment to leave no one behind and to build sustainability and sustainability. The standards are based on social and environmental assurance standards adopted by multinational development banks, the United Nations and financial institutions.
The JT framework opens a new perspective in this regard as it incorporates a new dimension of diversification and economic change useful for assessing regional economic risks and opportunities.
In addition to theory, the JT framework provides guidance for identifying actions needed to mitigate risks and maximize opportunities associated with future investments in the energy transition and for conducting actual transition assessments to assess the value of these actions. They include a series of strategic steps that lead to the development of just transition programs and actions that can be implemented at different levels: project, national and subnational.
The implementation of transitional justice programs is based on collaborative efforts that emphasize shared responsibility among project developers, communities, civil society organizations, national and local governments, and development partners. In this way, the JT Framework serves as a comprehensive systemic change guide for an inclusive and equitable energy transition.
The JTP's focus on a just energy transition requires the implementation of a just transition assessment and ongoing just transition programs and activities as a prerequisite for future energy transition investment projects. Construction of new power plants or energy transmission lines using renewable energy sources.
This involves meaningful stakeholder engagement and complaint resolution, easy access to information, adequate enforcement capacity, adequate financial support and close monitoring.
Therefore, the structure of transitional justice has three main characteristics. First, it goes beyond traditional safeguards by recognizing the subtle interplay between risks and opportunities in the energy transition process. Second, it clearly prioritizes vulnerable populations, affirming an unwavering commitment to leaving no one behind. Third, it actively contributes to maximizing socioeconomic and environmental benefits by creating an enabling environment through the implementation of the Transitional Justice Programme.
With the recent launch of the JTP Integrated Investment and Policy Plan (CIPP), it is important to use the time to recognize the benefits and importance of the JTP framework in integrating and implementing the JTP framework into Indonesia's energy transition vision and plans . Power transfer. . This process exceeded JETP's original objective.
The transfer of power is more than just an intervention; It is a catalyst perfectly integrated into our plan to achieve the Sustainable Development Goals. We envision a future that not only reduces emissions and promotes renewable energy, but also promotes inclusive growth in our pursuit of a low-carbon economy.
UNDP looks forward to working with stakeholders, launching the framework for a just transition and leading Indonesia towards a truly fair, just and sustainable energy future.
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The author is UNDP Resident Representative in Indonesia.
