JAKARTA - Indonesia will push for the Group of 20 major economies to recognise lending for early retirement of coal power plants as sustainable investment at next week’s meeting of finance chiefs, Finance Minister Sri Mulyani Indrawati said on Wednesday.have promised to mobilise US$20 billion
However, bankers told Reuters that investors under the Just Energy Transition Partnership still need convincing that coal power plant retirement, which might include compensating the owner to close operations earlier than the asset’s life cycle, would not be considered as funding coal. Dr Sri Mulyani said governments in South-east Asia’s Asean bloc have revised its green taxonomy – a framework defining what investment is considered environmentally friendly – so that such financing would be considered green. She would promote this at the G-20 for the grouping to make the same move.
“This weekend I will attend G-20 finance ministers meeting in Gujarat, and we will push this to be on the global agenda so that financing for transition will not face any problem,” she said, referring to meetings that will take place in India’s Gandhinagar on July 14 to 18.Indonesian state utility Perusahaan Listrik Negara has set a target to phase out coal power plants by 2056, as part of the country’s goal to reach net-zero carbon emission by 2060.