Delays in Indonesia's Coal Plant Closure Under G7 Initiative Could Impact Global Emissions Goals

A G7-supported initiative to close coal power plants in emerging markets, including Indonesia's Cirebon-1 plant, faces significant delays. Legal, financial, and political challenges are hindering progress, raising concerns about meeting global climate goals. Indonesia's new government and financial complexities further complicate the deal, critical for the broader Just Energy Transition Partnerships.

A G7-supported drive to shut down coal power plants in emerging markets is encountering further delays, as a July deadline passed without finalizing an early closure deal for Indonesia's Cirebon-1 plant.

The initiative, part of the Just Energy Transition Partnerships (JETPs) with Indonesia, Senegal, South Africa, and Vietnam, aims to secure billions of dollars in investments, grants, and loans to help these countries transition to low-carbon economies. Reducing emissions from coal, the dirtiest fossil fuel, is critical to avoid the worst impacts of climate change.

Despite efforts, a deal remains elusive, primarily due to legal and financial hurdles. Indonesia's concern over the high cost of replacing coal with renewable energy, estimated at $1.3 billion, and impending political changes add to the uncertainties.

(With inputs from agencies.)