Indonesia started a plan on November 21 to tap $20 billion from global financing to help decarbonize its power sector, Reuters reported.

The funds were pledged by the U.S., Japan and other developed global lenders under a climate partnership signed during the G20 summit last year. Half of the funds would come from private financing, which could be commercial loans carrying market rates, equity investment or other debt instruments.

The Southeast Asian nation seeks to cut carbon emissions in its on-grid power sector to 250 million tonnes by 2030 under the Just Energy Transition Partnership (JETP). Without the funds, the carbon emissions would likely exceed 350 million tonnes by then.

Indonesia plans to more than triple the share of renewables in its power mix to 44% by 2030, from around 12% currently.

Indonesia needs to move quickly to realize financing commitments for priority projects as 2030 is approaching fast,  Erick Thohir, ad-interim chief minister for investment affairs, was cited by Reuters as saying.

However, the $20 billion is far from enough to support its green goals. According to the country's Comprehensive Investment and Policy Plan, $97.3 billion was needed overall, including $66.9 billion for 400 projects that must start by 2030.

Michael Kleine, the U.S. charge d'affaires in Jakarta, said the $20 billion aim to "jump start" clean energy investment and attract more money, the report said.

Indonesia's deal with western countries is the world's largest energy transition partnership so far, followed by Vietnam's $15 billion scheme.

(Writing by Alex Guo  Editing by Harry Huo)
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