Sri Mulyani: Producing Green Electricity Costs US$243 billion
Translator
Ricky Mohammad Nugraha
Editor
Laila Afifa
Rabu, 13 Juli 2022 15:30 WIB
TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati in a webinar on Wednesday said Indonesia will need roughly US$243 billion, or roughly Rp3,500 trillion at the current exchange rate, to produce electricity that is sourced from new and renewable energy.
“It needs US$243 billion to reach the nationally determined contribution (NDC). And this is only for electricity,” said the former World Bank managing director in a sustainability finance webinar on July 13, Antaranews reported.
A steep budget is needed to reach Indonesia’s NDC to reduce carbon emissions by 29 percent and 41 percent with international assistance by the year 2030. In order to reach the 29 percent target, the electricity sector needs to reduce carbon emissions of up to 314 million tons worth of carbon dioxide.
“That number makes electricity the second largest contributor of carbon emissions following the forestry sector,” said Sri Mulyani.
Meanwhile, the 41 percent NDC target - with international assistance - makes the electricity sector have to reduce 446 million tons of carbon emissions by 2030. These are the main reasons why the government is still formulating the technical imposition of carbon taxes to provide incentives for business actors who have succeeded in reducing carbon emissions.
“Unfortunately, the global carbon market does not have a universal carbon price,” Sri Mulyani asserted, “This is a serious debate in the meeting of Finance Ministers of G20 member countries regarding a fair carbon price that reflects different general responsibilities.”
ANTARA
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