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Indonesia’s economy growing greener: World Bank
Indonesia is making some headway in decoupling its GDP growth and emissions output, the World Bank has noted in its latest report on the country's prospects, which includes recommendations on how to maintain this trend.
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Haze blankets Jakarta on Aug. 23, 2023, two days after the city administration imposed a two-month WFH trial for its public employees in a bid to improve the air quality in the capital. (AFP/Yasuyoshi Chiba)
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ndonesia’s GDP growth is becoming greener, the World Bank has said, as an increase in economic output is not being matched by an equal increase in carbon emissions.
World Bank senior economist David Kaczan told reporters on Tuesday that the international financial institution had found evidence of “relative decoupling” in Indonesia, indicating a divergence in the country’s GDP growth and emissions.
Kaczan noted that, although similar divergence was seen in other countries, Indonesia appeared to be moving toward greener growth faster than India, for example.
China had meanwhile shown even greater decoupling, in part because it had higher per capita emissions and income levels, and was thus further along the trajectory to greener economic growth.
“Indonesia's emissions are in line with what we see in comparable middle-income economies,” said Kaczan. He added that the country’s per capita emissions were in line with those of its peers and lower than those of industrialized countries.
Greenhouse gas (GHG) emissions generally increase along with GDP growth, as greater economic output requires greater energy input, much of which comes from burning fossil fuels.
However, that is changing as countries transition toward increased use of environmentally friendly energy derived from renewable sources while decreasing fossil fuels.
