Make Sure the Energy Transition Partnership Prioritizes Aspects of Justice

It is believed that the Equitable Energy Transition Partnership will reduce the use of fossil energy. However, its implementation must still prioritize aspects of justice and be supported by strong policies.

The following article was translated using both Microsoft Azure Open AI and Google Translation AI.

KOMPAS/AGUS SUSANTO

The Lantern Bumi Nusantara wind turbine rotates on the beach in Ciheras Village, Cipatujah District, Tasikmalaya Regency, West Java, Saturday (6/8/2022).

JAKARTA, KOMPAS - The Energy Transition Partnership for Justice initiated by the Indonesian Government as one of the funding mechanisms to accelerate energy transition is believed to reduce the use of fossil energy. The implementation of this partnership still needs to consider various aspects, especially in realizing a fair energy transition.

The Just Energy Transition Partnership (JETP) is a mechanism for global climate financing cooperation, specifically related to energy transition programs agreed upon by world leaders at the G20 High-Level Conference in Bali in 2022. In February 2023, the JETP Working Committee Secretariat was also established to realize the energy transition financing cooperation.

Energy Transformation Program Manager of the Institute for Essential Services Reform (IESR), Deon Arinaldo, stated in an online discussion titled "JETP Energy Transition: What is it and How Does it Work?", on Wednesday (2/8/2023), that so far information about the nominal amount and funding scheme in JETP has not been widely known to the public.

"Now there is still a big task related to policy reform if we truly want to realize justice in energy transition and this requires high political will."

However, given that one of these funds comes from a member of the G7 countries, Indonesia needs to establish internal or bilateral communications with these countries. Indonesia needs to clarify what schemes will be used, such as commercial funding, low interest funding, or grants and what the policies are.

According to Deon, the existence of JETP targets will automatically reduce the use of coal energy. On the other hand, the use of new and renewable energy up to hundreds of gigawatts as a substitute for coal also needs to be encouraged more massively.

KOMPAS/AGUS SUSANTO

The coal supply for the Sintang Steam Power Plant in Sintang Regency, West Kalimantan, was conducted on Monday (11/10/2021).

However, the implementation of JETP still needs to consider various aspects, including a fair energy transition. However, up to this point, information regarding the process to achieve a just energy transition is still not widely available to the public.

"There are many definitions related to justice and it is one of the tasks of the working team to elaborate on them. Therefore, justice needs to be defined, whether it includes workers like those in the steam power plant and mining activities as well as small businesses that support the operation of the power plant," said Deon."

Read also: Energy Transition (Un)Equitable in JETP

Deon also hopes that in the future there will be a mitigation effort to overcome the impact of the energy transition that can be funded by JETP. This includes mitigation for vulnerable groups, especially working people. An example can be done by providing training to workers before being transferred to other work sectors.

Clean Up Indonesia Coordinator Ahmad Ashov also highlighted the aspect of justice in accelerating the funding transition of energy. He believes that justice is a challenge in the context of development so far.

“If we honestly look at Indonesia's context with various controversial policy products that affect the energy transition directly or indirectly, this aspect of justice will be difficult to achieve. This is especially in the context of accelerating the energy transition," he said.

Ashov emphasized that justice in this accelerated energy transition must prioritize procedural aspects, so that the community needs to be involved and there must be transparency of information. Then, the distribution aspect is also emphasized in this justice so that the community not only bears the burden but also gains benefits. There is also a concept of restorative justice for the recovery of the impact of this accelerated transition.

Also read: Indonesia Confirms Energy Transition Commitment in the G20

Furthermore, Ashov also asserted that achieving a just energy transition cannot be done through a project-based approach. Instead, the energy transition must be based on strong policies. One way to achieve the energy transition is through the policy of disincentives for coal-fired power plants.

"At the moment, we are still in the process of developing the JETP, but the approach scheme is still highly project-oriented. Therefore, there is still a major task related to policy reform if we truly want to achieve justice in energy transition, and this requires a high political will," he said.