On Wednesday the 6th of July 20222, the Institute for Essential Services Reform (IESR) organized the hybrid Event “Implications of coal phase-out policies to green employment and economic transformations in Indonesia“, where also the 2021 Climate Transparency Report has been presented.
The event’s main objectives were to disseminate the key findings and recommendations of the research paper to the public, and to increase the understanding of policy makers, the private sector, and other relevant stakeholders on the discourse about just energy transition and green employment in Indonesia. Moreover, the event aimed, to gather inputs towards the key findings and recommendations to raise awareness for policy makers on the significance of green economic transformation to achieve the Paris Agreement’s objectives.
After the Paris Agreement was signed in 2015, nearly 200 countries committed to tackle climate crisis and pursue efforts to strengthen climate mitigation, adaptation, and climate finance. The rapid reduction of fossil fuels is key to reach Paris Agreement’s goals.
Coal, oil, and gas have contributed for over three-fourths of global greenhouse gas emissions, which continue to increase. In aggregate, countries’ planned fossil fuel production by 2030 will lead to the emission of 39 billion tonnes (giga tonnes) of carbon dioxide (GtCO₂). Regarding coal, by 2030, countries plan to produce 150% (5.2 billion tonnes) more coal, which is inconsistent with 2°C and 1.5°C pathways. Immediate actions should be taken to keep the temperature increase below 1.5°C.
In some countries, coal is still the main source of electricity generation. However, many governments are advancing efforts to decarbonize the energy system, coal use will decline significantly in the long run. The coal producer and consumer countries, like Indonesia, must anticipate this situation. Declining coal demand will affect long-term coal production and disrupt the value chain. Furthermore, structural economic changes must be anticipated while countries transition toward a low carbon economy and to plan to reach Net Zero targets.
In Indonesia, coal mining substantially contributes to the local economy of the four provinces, including East Kalimantan, South Kalimantan, Central Kalimantan, and South Sumatra. For the local economy, coal contributes to the local government revenues and job creation. Short-term and long-term strategies are needed to manage the implications of coal decline for coal workers. Thus, this event tried to explore other opportunities outside the coal and mining sector and ensure the energy transition is just and no one is left behind.