Jakarta – A Zero Carbon Analytics study shows that fossil energy projects still dominate Indonesia and Japan’s partnership in the Asia Zero Emission Community (AZEC).
Data from the Zero Carbon Analytics report shows that since the launch of AZEC in March 2023, Japan has signed 158 Memoranda of Understanding (MoUs) with various countries in Asia, including Indonesia, which signed the most, with 43% of the total agreements, followed by Thailand (15%) and Malaysia (11%).
However, of the 68 MoUs signed by Indonesia, only 15 are related to renewable energy technologies. In comparison, the other 27 MoUs are related to fossil fuels, such as liquefied natural gas (LNG) and carbon capture technology (CCS/CCUS). The remaining 9 MoUs are related to biomass, 2 MoUs on carbon markets, and 15 other MoUs.
Zero Carbon Analytics notes in a briefing published on October 4 that introducing fossil-based technologies, such as ammonia co-firing and CCS, while reducing emissions, still produces higher emissions compared to pure clean energy, such as wind or solar. According to them, relying on these technologies can slow down the decarbonization process and add costs.
On the other hand, Indonesia has much renewable energy potential that has not been optimally utilized. Putra Adhiguna, the Managing Director of the Energy Shift Institute, said that the focus on fossil energy could hinder a true energy transition.
“Projects like this, although considered low-emission, still extend the life of fossil fuels in our energy system. In fact, by switching to renewable energy, Indonesia can more quickly achieve its net zero emission target by 2060,” Putra explained.
A report from Zero Carbon Analytics states that “life cycle emissions from fossil fuel technologies are higher than clean solutions such as wind or solar. Project costs for equipping coal/gas power plants with ammonia and/or CCS will soon be higher than solar and wind. By adopting these emerging technologies, developing AZEC countries risk deepening coal dependency or high-cost LNG dependency.”
Bhima Yudhistira, Director of the Center for Economic and Law Studies (CELIOS), emphasized that CCS is not the main solution to achieve decarbonization. “CCS technology is very expensive, and the success rate has not been as high as promised. In addition, CCS allows the use of fossil fuels to continue, which can increase the debt burden of developing countries due to the cost of this technology,” said Bhima.
Apart from CCS, the use of biomass as fuel has also been criticized. Zero Carbon Analytics notes that burning woody biomass produces 30% more carbon emissions than coal, which can drive deforestation. Hikmat Soeriatanuwijaya of Oil Change International emphasized that the focus on fossil and biomass technologies risks prolonging dependence on dirty energy.
“This initiative is more focused on the short-term profits of Japanese companies, but at the expense of Indonesia’s climate and social future. We need an energy transition based on social and environmental justice, not one concerned with corporate interests,” said Hikmat. (Hartatik)
