Jakarta – G20 and G7 member countries focus on accelerating the discussion of energy transition from fossil to new and renewable energy (NRE), officials said Thursday (28/4). This is a form of commitment to implementing environmentally friendly clean energy for the future.
“Even with the war in Ukraine and rising energy prices, the push for a sustainable finance agenda and more specifically on the transition in the financial sector is definitely getting stronger,” said Head of the Fiscal Policy Office of the Ministry of Finance, Febrio Nathan Kacaribu in the CSIS Global Dialogue 2022.
He said, although European countries which are basically the most affected by the increase in energy prices, they are increasingly motivated to voice the energy transition. Germany, for example, has often voiced calls for accelerating the implementation of the transition from fossil energy to green energy.
Therefore, in the sustainable finance working group at the G20 forum, the overall discussion on clean energy has become increasingly intense. China and the United States are co-chairs in the working group. “It’s very interesting to see how developed and developing countries are now addressing this idea of transition very strongly, even in a situation like this,” explained Kacaribu.
Indonesia, he continued, also puts itself in the same position, namely encouraging the acceleration of the energy transition. Currently, 68 percent of the energy used by Indonesia comes from coal. Therefore, the gradual reduction of coal utilisation has been mapped out early on.
The goal of reducing fossil energy is not just for the present, but also in the medium and long term plans. For this reason, as the 2022 G20 Presidency, Indonesia seeks to reach a consensus on green energy. Kacaribu said that funding for clean energy is still a fairly challenging discussion, because each country has their own goals and capacities to implement green energy.
The G20 Indonesia Presidency raised three main topics to discuss, namely the global health architecture, digital-based economic transformation, and energy transition. (Hartatik)
