Jakarta – Study results show that the World Bank is still encouraging dependence on fossil energy in some countries rather than providing support for a sustainable and renewable energy transition process, civil organisations said Friday (14/5).
A Trend Asia case studies focusing on Indonesia, Pakistan and Bangladesh found that the World Bank still maintains funding support for gas-fired power plants, pipelines, and natural gas regasification plants.
Trend Asia Research and Program Manager Andri Prasetiyo regrets that the World Bank’s support will make it difficult for the three countries to escape their dependence on fossil energy.
“The World Bank and International Finance Corporations still maintain their support for fossil gas and liquefied natural gas infrastructure in Indonesia, Bangladesh and Pakistan,” he said in a written release.
Prasetiyo said the two institutions are responsible for the unsustainable and volatile gas-based energy model in these countries. Furthermore, there is a total of USD 379 billion of new gas infrastructure planned in Asia that is at risk of becoming stranded assets. However, countries around the world are starting to transition away from fossil fuels to meet the Paris Agreement targets.
Planned gas investments in Asia consist of USD 189 billion of gas-fired power plants, USD 54 billion of gas pipelines and USD 136 billion of liquefied natural gas export-import terminals.
“If realised and operated at full capacity, the entire infrastructure will have a major impact of rising temperature to 1.5°C of global warming. This will hinder Indonesia’s real efforts to transition to clean and renewable energy,” he added.
In addition to having a major impact on the environment and health, Prasetiyo said, methane emissions from the project will contribute significantly to Indonesia’s greenhouse gas emissions in the midst of the world climate crisis.
He said that the World Bank must immediately reorient its priorities and funding to accelerate the clean energy transition based on the polluter pays principle and use their limited resources to support country governments in their efforts to accelerate the transition from imported fossil gas and liquefied natural gas. (Hartatik)
