- Indonesia updates the “taxonomy” rulebook for green investment.
- Controversy surrounds the inclusion of coal-fired power plants in nickel facilities.
Indonesia launches a revised “taxonomy” rulebook for green investment, categorising coal-fired power plants within nickel facilities, sparking debate. Building upon a 2022 document, the revised taxonomy supports Indonesia’s net-zero emissions pledge by 2060.
It employs a traffic light system: “green” for alignment with climate goals, “amber” for transition support, and “red” for harmful sectors. Investments in captive coal power plants labelled “amber” must meet strict criteria.
They must operate by 2031, be decommissioned by 2050, and commit to emission reduction. The taxonomy also promotes green investments in early coal power plant retirements, aligning with the Just Energy Transition Partnership led by the G7.
Mahendra Siregar, Chief of Indonesia’s Financial Services Authority (OJK), emphasises the taxonomy’s comprehensive approach. However, environmental groups criticise the inclusion of coal-related investments.
Indonesia’s significant role as a coal and nickel exporter adds weight to the transition’s balancing act.