US President Joe Biden and Indonesian President Joko Widodo will announce a climate finance deal providing US$20 billion to help Indonesia pivot away from coal power.
The funding deal, brokered between the US, Indonesia and Japan, is set to be outlined Tuesday on the sidelines of the Group of 20 summit in Bali, following more than a year of talks. It is the largest single climate finance transaction ever, according to a senior US Treasury Department official.
Under the package, Indonesia will commit to capping carbon dioxide releases from its electricity sector at 290 megatons by 2030 -- an emissions peak that will apply not just to its conventional grid but also power suppliers for industrial facilities. The country will also establish a goal of reaching net-zero emissions in the power sector by 2050 and commit to boost deployment of renewable energy so that it comprises at least 34% of all power generation by the end of this decade.