To mitigate climate crisis, G20 needs to cut 45% of GHG emissions by 2030

Jakarta – The G20 countries are responsible for 85% of the world’s greenhouse gas (GHG) emissions, so they must take a bigger role in drastically cutting these emissions, according to the latest Institute for Essential Services Reform (IESR) report.

IESR Executive Director Fabby Tumiwa in the launch of the Climate Transparency Report 2022 and webinar “Towards the G20 Summit: Is G20 Climate Action Right?”, Wednesday (9/11), said that “until now there has not been one G20 country that has met the target, including Indonesia as the G20 presidency.” According to the IPCC, globally, the world must cut around 45% of GHG emissions at 2010 levels by 2030.

Tumiwa said, G20 countries need to accelerate the energy transition by moving away from fossil energy because it is expensive, polluting and dangerous. President Jokowi was also asked to be more ambitious in reminding the G20 countries to start energy transition.

“The key is to immediately reduce coal-fired power plants and plan to phase out before 2040. Then accelerate the increase in renewable energy to replace fossil energy and encourage energy efficiency,” he added.

Furthermore, Tumiwa said fossil subsidies which are increasing every year hinder the development of renewable energy and energy efficiency. He hopes that at the G20 Summit, President Jokowi can invite G20 countries collectively to take a stance on cutting fossil energy subsidies.

Indonesia does not experience fluctuations in electricity prices due to high gas prices, as in Europe and the UK. Electricity prices in Indonesia are relatively under control because electricity and energy prices are subsidised. This year alone, according to the Ministry of Finance, energy subsidies have increased to Rp 650 trillion. Next year, it is planned that in the draft state budget, energy subsidies will reach Rp 350 trillion.

“While we are trying to cut greenhouse gas emissions, fossil energy subsidies are actually providing incentives to use fossil energy continuously and hindering the development of new renewable energy, as well as efforts to reach energy efficiency,” explained Tumiwa.

Farah Vianda, IESR’s Green Economy Program Officer, similarly said that the government’s commitment to phase out coal-fired power plants and start the transition to environmentally friendly energy, according to the declaration of ‘Global Electric Energy Transition to Clean Energy’ at last COP26, needs to be realised immediately. The Climate Transparency 2022 reveals that the energy transition process must take place fairly, including by accommodating the interests of around 100,000 people who work in the coal industry.

The Climate Transparency 2022 report shows the dominance of 81% of fossil energy in the energy system in Indonesia, and 62% of electricity generation sources come from coal, making the energy sector still the largest contributor to GHG emissions (43%), followed by the transportation sector (25%) in second place in 2021.

The report said Indonesia’s emission intensity in the energy sector has increased throughout the 2016-2021 period by 5.5% to 784.8 gCO2/kWh. This amount is greater than the average emission in the energy sector of the G20 countries during the same period which decreased by 8.1% to 444.7 kWh. This is indicated by the rapid return of economic activity after the pandemic. (Hartatik)

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