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Britcham says carbon credits can help finance Ri’s coal phase out plan
The British Chamber of Commerce in Indonesia (Britcham) said there is an opportunity to market carbon credits derived from emission reduction of early retirement a coal fired plant.
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Black gold: A crane loads coal onto a barge on the Mahakam River in Samarinda, East Kalimantan. State electricity company PLN is heavily reliant on coal to fuel its power plants. (AFP/Bay Ismoyo)
T
he British Chamber of Commerce in Indonesia (Britcham) said there was an opportunity to market carbon credits derived from the reduction in emissions from the early retirement of coal-fired plants.
Britcham chairman Rino Donosepoetro said this could help finance the energy transition in Indonesia on top of the existing pool of funds obtained from the Just Energy Transition Partnership (JETP).
“Blended finance is necessary for the early retirement of coal power plants, and even with this, [the committed financial resources] may not be enough,” he told The Jakarta Post on Monday.
Indonesia’s JETP has around US$20 billion in pledges consisting of grants and concessional loans from multilateral development banks, private financial institutions as well as the International Partners Group (IPG), co-led by the United States and Japan.
British bank Standard Chartered is one of many financial institutions involved in providing loans for Indonesia’s JETP through the Glasgow Financial Alliance for Net Zero (GFANZ).
Rino, who also serves as vice chairman in ASEAN and president commissioner in Indonesia for Standard Chartered, underscored that the most complex aspect of JETP financing pertained to the early retirement of coal power plants and facilitating green investments.
The JETP secretariat, which is responsible for overseeing the disbursement of the pledges, has also suggested a similar idea to introduce carbon credits gained from the early retirement of coal-fired plants with corresponding funds allocated to facilitate the program.
