G20 Presidency in 2022

The Just Energy Transition Partnership (JETP) in South Africa marks a significant milestone and serves as a blueprint for future initiatives in other developing countries. The USD 8.5 billion partnership programme is designed not only to help decarbonise South Africa's energy sector to mitigate climate change, but also to catalyse inclusive sustainable development. This background paper by IRID and Germanwatch provides an overview of the partnership process to date, including a general overview, its framework, and guiding principles.

This background paper by IESR and Germanwatch examines the climate financing landscape in Germany and Indonesia, focusing on climate mitigation in the energy sector. For Germany, this paper provides a comprehensive summary of its climate financing flows, structure, and global trends. With respect to Indonesia, it examines its climate mitigation targets and achievements, energy transition financing trends, and potential avenues for international climate finance support.

Climate change is increasingly evident through devastating impacts on lives and livelihoods, such as the destructive floods in Pakistan and Indonesia. The likelihood of global warming exceeding 1.5°C is over 50%, amplifying the severity of climate change effects and associated losses. This background paper discusses Loss and Damage in Indonesia, explaining the concept, its history within the UNFCCC, and providing an overview of financing options.

To take advantage of the Just Energy Transition Partnership (JETP) and other financing opportunities, Indonesia must identify key requirements to create the right environment for cooperation without violating existing principles. Our background paper provides a brief overview of the state of the energy transition plan and financing in Indonesia.

In a series of dialogues with Indonesian civil society organisations (CSOs), Germanwatch and the Habibie Center explored how to integrate social justice aspects into the energy transition debate in Indonesia. This policy brief provides the context for how Indonesian CSOs view the JETP and how they relate to other key socio-economic issues.

Indonesia's Just Energy Transition Partnership (JETP) is one of the outcomes of the G20 Summit that Indonesia hosted in 2022. The partnership is an agreement between Indonesia and the countries of the International Partners Group (IPG). It aims to mobilise finance for Indonesia to decarbonise and phase out the construction and operation of coal-fired power plants. The Indonesia Research Institute for Decarbonisation (IRID) and Germanwatch hosted a focus group discussion with CSOs including relevant research institutions on 18 January 2023 in Jakarta. The discussion was held to obtain feedback and input from CSOs working on topics related to the JETP.

Fossil fuel subsidies have long been a subject of discussion for the G20. As one of the G20 countries, Indonesia needs to prepare for the removal and redirection of fossil fuel subsidies without creating long-term negative impacts, especially in socio-economic terms. The Indonesia Research Institute for Decarbonisation (IRID) and Germanwatch confirm the need for G20 countries to reduce and shift fossil fuel subsidies. As this requires the readiness of G20 developing countries, on 19 January 2023, IRID and Germanwatch hosted a group discussion focused on Indonesia.

In 2022, Indonesia had the opportunity to host the annual G20 Summit, where the energy transition played a major role. The summit produced two key documents on energy, namely the Bali Roadmap and the Bali Compact. Both documents are expected to serve as a reference for G20 countries to achieve a just energy transition, even after Indonesia’s G20 presidency. The Indonesia Research Institute for Decarbonization (IRID) and Germanwatch acknowledge that this is important in order to avoid that dialogues at the G20 Summit start from scratch. For this reason, a focus group discussion took place in Jakarta on 25 January 2023. The discussion was limited to invitees.

Extreme weather events are increasing in intensity and frequency due to the impacts of climate change. Without appropriate intervention, Loss and Damage will be inevitable, despite efforts at adaptation, mitigation, and even disaster risk management. To understand how Loss and Damage financing will be discussed after the G20 Summit led by India and after COP27, the Indonesia Research Institute for Decarbonisation (IRID) and Germanwatch hosted a focus group discussion on 11 January 2022. The event aimed to gather information on different initiatives on Loss and Damage financing, including access modalities, challenges, and coping strategies.

The G20 countries have a special role to combat climate change - they are responsible for a majority of global emissions. This year’s Climate Transparency Report shows that G20 members are undermining climate efforts and fossil fuel production subsidies surge to highest levels ever in 2021.