PROJECT DESCRIPTION
Indonesia has committed to achieving Net Zero Emissions (NZE) by 2060 or earlier and has raised its 2030 energy sector emission reduction target by 14% under the Enhanced NDC. This will be pursued through expanding renewable energy, reducing fossil fuel use, adopting electric vehicles, and deploying climate technologies. However, alignment between NZE goals and NDC targets remains unclear, as does the implementation strategy. Although Indonesia has introduced climate financing tools like the Energy Transition Mechanism (ETM) and carbon pricing regulations, how these mechanisms will operate—especially in incentivizing private sector actions—remains uncertain. Private companies in the energy sector need technical support, investment, and technology access to implement mitigation measures and work toward carbon neutrality.
To address these challenges, the project aims to support the Government of Indonesia in advancing energy sector emission reductions through three components: (1) developing net-zero pathways for private companies, (2) creating policy recommendations to raise NDC energy targets, and (3) supporting the Indonesia Environment Fund (IEF) as a standby buyer of carbon credits. Expected outcomes include 50 private companies committing to net-zero actions, enhanced policy capacity for 200 government officers and 150 stakeholders, 70 validated mitigation actions eligible for carbon certification, and six carbon transactions in the domestic market.
ADDITIONAL INFORMATION
For more information https//open.undp.org/projects/01000330