Indonesia Joins Coal Transition Program, Biodisel Consumption to Reach over 10 Million Kiloliters in 2022

January 2022

The four countries of India, Indonesia, the Philippines and South Africa, which account for 15% of global coal emissions, have recently joined a pilot program to accelerate their transition from coal to clean energy. Lowering these countries´ emissions will facilitate reaching net zero carbon emissions by 2050 globally, the main goal of United Nations COP26 climate summit.

According to the Climate Investment Funds (CIF), the Accelerating Coal Transition (ACT) program is the first initiative that specifically targets developing countries that suffer from shortage of resources for financing the transition from coal, which has a paramount role in limiting the global temperature rise to 1.5 degrees Celsius by the year 2030. The United States, Britain, Germany, Canada, and Denmark are supporting the program financially.

While Indonesia currently has a biodiesel program with 30% palm oil content (B30), plans to increase palm content to 40% by 2021 were delayed, as a result of lower fuel costs and higher palm prices. Indonesia has a target of increasing renewable energy utilization to 23% of the country’s total energy consumption by 2025, requiring biodiesel consumption of 13.9 million kiloliters by that year. Biodiesel consumption in Indonesia is planned to increase to more than 10 million kiloliters in 2022. The country allocates levies to support financing its palm oil programs, including biodiesel subsidies and smallholder replanting programs.

(Source: Reuters)

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