Amidst the rising number of countries working on reducing their carbon footprint around the globe, Indonesia is also taking gradual steps towards lowering its carbon dioxide emission from coal-fired power stations.
In fact, few companies are even heard to be withdrawing their plans of constructing new coal-fired plants. The country’s state-owned generation and distribution company, Perusahaan Listrik Negara (PLN), last week said that it is planning to stop the construction of new coal-fired power stations after 2023. Riau-based paper producer Asia Pacific Resources International (APRIL), in its 2030 commitment, has also set reaching net-zero emissions from land use by 2030 as its main target.
Short-term delays in emission cut plans
As per Climate Action Tracker, Indonesia’s emissions remain on an upward trajectory and the effects of Covid-19 have prompted it to miss its opportunity to lock in reduction in emissions in the short-run.
The country still accounts for 6% of the global share of potential new coal-fired plants and is also one among the few countries that had sanctioned new coal plant constructions in 2020.
Government’s effort
Although there has been relatively less progress in Indonesia on reducing carbon emissions, the government is making endeavours to boost renewables.
Indonesian Parliament is set to deliberate on a new renewable energy Bill this year to help provide a stronger legal framework for the sector.
National Development Planning Minister Suharso Monoarfa, at the ‘2021 Indonesia Net Zero Summit’, also said that the country was committed to the 2030 Sustainable Development Goals in which low carbon development and climate endurance are some of the top government priorities.
Effect on Indian markets
Given that Indonesia is one of the top coal exporting countries to India, increased regulations related to coal production may weigh on India’s coal procurement plans from the country. With several Asian countries, including Vietnam and Malaysia, joining the carbon emissions reduction club, India is also likely to encounter more global pressures, going ahead.
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