A cache of funding to help Indonesia reduce its reliance on coal is part of the global commitment to help developing countries make advancements in the energy transition, leaders said Tuesday from the G20 summit in Bali.
The energy transition refers to the pivot away from fossil fuels. From Bali on Tuesday, the United States, the European Commission, the Indonesian government and others announced a $20 billion fund that would do just that -- improve the health of the planet by reducing Indonesia's reliance on coal.
"Today, G20 leaders highlighted the importance of investing together and investing stronger to fill the enormous need for better infrastructure in low- and middle-income countries around the world, and we welcome all who share this vision to join our efforts," said U.S. President Joe Biden.
The Asian Development Bank notes that Indonesia may need as much as $154 billion to buildup its power generation capacity, but it faces significant challenges in terms of overall financing due to pressures from the COVID-19 pandemic.
Indonesia may have a hard time breaking away from coal. The country is a net exporter of fossil fuels and coal is its principal energy export, accounting for about 11% of its total energy export value, according to ABD data. It is also the world's third-largest producer of coal.
From the COP27 summit in the Egyptian resort city of Sharm el-Sheikh last week, officials at the United Nations berated advanced economies for not doing enough to support developing nations.
Speaking on the eve of the G20 summit, U.N. Secretary-General Antonio Guterres called on the global community to rally around future generations.
"Action -- or inaction -- by the G20 will determine whether every member of our human family has a chance to live sustainably and peacefully, on a healthy planet," he said.