Just Energy Transition Partnership

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A Just Energy Transition Partnership (JETP) is a financing cooperation mechanism to help a heavily coal-dependent emerging economy make a just energy transition away from coal. [1]

Contents

Countries

Indonesia

The Indonesia Just Energy Transition Partnership is a 20 billion dollar agreement to decarbonise Indonesia's coal-powered economy, launched on 15 November 2022 at the G20 summit. [2] [3] [4] This Just Energy Transition Partnership comes after the first such agreement, the South Africa JET-IP was announced in 2021 as a partnership with Germany, France, the UK and US. [5] [6] The agreement with Indonesia involves all G7 countries as partners, including Canada, Italy and Japan. It also includes Denmark and Norway. [7] [8] The JETP aims to develop a comprehensive investment plan (the JETP Investment and Policy Plan) to achieve Indonesia's decarbonisation goals. [9]

Under the JETP, Indonesia aims to reach net-zero emissions of greenhouse gases from electricity production by 2050, bringing forward its target by a decade, and reach a peak in those emissions by 2030. According to two think tanks, the $20bn allocated under the programme are insufficient for these goals. [10]

On the sideline of the same conference, the Asian Development Bank signed an agreement with Cirebon Electric Power to open discussions on accelerated retirement of the Cirebon Steam Power Plant. [11]

Senegal

This was announced in 2023. [12]

South Africa

The South Africa Just Energy Transition Investment Plan (JET-IP) is a $8.5bn deal to help South Africa (ZA) decarbonise its economy, struck at COP26 in 2021. [13] [14] This Just Energy Transition Partnership is a cooperation between the governments of ZA, France, Germany, the United Kingdom, the United States and the European Union. [15] It aims to help South Africa achieve the goals set out in its nationally determined contribution to the Paris Agreement, and prevent emissions of 1 to 1.5 gigatonnes of greenhouse gas emissions. [16] The South African JETP was a model for a subsequent similar agreement on coal power in Indonesia, known as the Indonesia Just Energy Transition Partnership.

Alongside the main JETP, there are two other international agreements to accelerate the retirement of coal power plants in South Africa. The others are:

  • The Eskom Just Energy Transition Project, a $497 million project to support Eskom, South Africa's public utility, to decommission the Komati Power Station. It was funded by the World Bank. [17]
  • The Climate Investment Funds Accelerating Coal Transition Investment Plan, which blends billions of dollars from the World Bank, International Finance Corporation and African Development Bank to finance coal power plant decommissioning and repurposing in Mpumalanga, the province where most of South Africa's coal capacity is located, along with replacement of its power capacity. [17]

Vietnam

This was announced in 2022. [18] [19]

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<span class="mw-page-title-main">International Energy Agency</span> Autonomous intergovernmental organisation

The International Energy Agency (IEA) is a Paris-based autonomous intergovernmental organisation, established in 1974, that provides policy recommendations, analysis and data on the global energy sector. The 31 member countries and 13 association countries of the IEA represent 75% of global energy demand.

Eskom Hld SOC Ltd or Eskom (Afrikaans: Elektrisiteitsvoorsieningskommissie) is a South African electricity public utility. Eskom was established in 1923 as the Electricity Supply Commission (ESCOM). Eskom represents South Africa in the Southern African Power Pool. The utility is the largest producer of electricity in Africa, and was among the top utilities in the world in terms of generation capacity and sales. It is the largest of South Africa's state owned enterprises. Eskom operates a number of notable power stations, including Matimba Power Station and Medupi Power Station in Lephalale, Kusile Power Station in Witbank, Kendal Power Station, and Koeberg Nuclear Power Station in the Western Cape Province, the only nuclear power plant in Africa.

<span class="mw-page-title-main">Energy policy of the European Union</span> Legislation in the area of energetics in the European Union

The energy policy of the European Union focuses on energy security, sustainability, and integrating the energy markets of member states. An increasingly important part of it is climate policy. A key energy policy adopted in 2009 is the 20/20/20 objectives, binding for all EU Member States. The target involved increasing the share of renewable energy in its final energy use to 20%, reduce greenhouse gases by 20% and increase energy efficiency by 20%. After this target was met, new targets for 2030 were set at a 55% reduction of greenhouse gas emissions by 2030 as part of the European Green Deal. After the Russian invasion of Ukraine, the EU's energy policy turned more towards energy security in their REPowerEU policy package, which boosts both renewable deployment and fossil fuel infrastructure for alternative suppliers.

<span class="mw-page-title-main">Low-carbon economy</span> Economy based on energy sources with low levels of greenhouse gas emissions

A low-carbon economy (LCE) is an economy which absorbs as much greenhouse gas as it emits. Greenhouse gas (GHG) emissions due to human activity are the dominant cause of observed climate change since the mid-20th century. There are many proven approaches for moving to a low-carbon economy, such as encouraging renewable energy transition, energy conservation, electrification of transportation, and carbon capture and storage. An example are zero-carbon cities.

<span class="mw-page-title-main">Fossil fuel phase-out</span> Gradual reduction of the use and production of fossil fuels

Fossil fuel phase-out is the gradual reduction of the use and production of fossil fuels to zero, to reduce deaths and illness from air pollution, limit climate change, and strengthen energy independence. It is part of the ongoing renewable energy transition, but is being hindered by fossil fuel subsidies.

Komati Power Station, is a coal-fired power plant operated by Eskom. Its 300 metre tall chimney was built in 1979, and is one of the tallest structures in the country. Komati is one of power stations with a common steam range, meaning that its nine boilers jointly feed the nine generators. Other stations are Tutuka Power Station and Matimba Power Station.

Majuba Power Station between Volksrust and Amersfoort in Mpumalanga, South Africa, is a coal-fired power plant operated by Eskom. Majuba is Eskom's only power station that is not linked to a specific mine and it receives its coal from various sources. This was due to an error in geotechnical engineering core drilling which did not identify that the proposed local coal mine was under solid bedrock.

<span class="mw-page-title-main">Just transition</span> Labor movement idea emphasizing aid and green-collar jobs for fossil fuel workers

Just transition is a framework developed by the trade union movement to encompass a range of social interventions needed to secure workers' rights and livelihoods when economies are shifting to sustainable production, primarily combating climate change and protecting biodiversity. In Europe, advocates for a just transition want to unite social and climate justice, for example, for coal workers in coal-dependent developing regions who lack employment opportunities beyond coal.

<span class="mw-page-title-main">Coal phase-out</span> Environmental policy intended to stop using coal

Coal phase-out is an environmental policy intended to stop burning coal in coal-fired power plants and elsewhere, and is part of fossil fuel phase-out. Coal is the most carbon-intensive fossil fuel, therefore phasing it out is critical to limiting climate change as laid out in the Paris Climate Agreement. The International Energy Agency (IEA) estimates that coal is responsible for over 30% of the global average temperature increase above pre-industrial levels. Some countries in the Powering Past Coal Alliance have already stopped.

South Africa has a large energy sector, being the third-largest economy in Africa. The country consumed 227 TWh of electricity in 2018. The vast majority of South Africa's electricity was produced from coal, with the fuel responsible for 88% of production in 2017. South Africa is the 7th largest coal producer in the world. As of July 2018, South Africa had a coal power generation capacity of 39 gigawatts (GW). South Africa is the world's 14th largest emitter of greenhouse gases. South Africa is planning to shift away from coal in the electricity sector and the country produces the most solar and wind energy by terawatt-hours in Africa. The country aims to decommission 34 GW of coal-fired power capacity by 2050. It also aims to build at least 20 GW of renewable power generation capacity by 2030. South Africa aims to generate 77,834 megawatts (MW) of electricity by 2030, with new capacity coming significantly from renewable sources to meet emission reduction targets. Through its goals stated in the Integrated Resource Plan, it announced the Renewable Energy Independent Power Producer Procurement Programme, which aims to increase renewable power generation through private sector investment.

<span class="mw-page-title-main">Climate change in Europe</span> Emissions, impacts and responses of Europe related to climate change

Climate change has resulted in an increase in temperature of 2.3 °C (2022) in Europe compared to pre-industrial levels. Europe is the fastest warming continent in the world. Europe's climate is getting warmer due to anthropogenic activity. According to international climate experts, global temperature rise should not exceed 2 °C to prevent the most dangerous consequences of climate change; without reduction in greenhouse gas emissions, this could happen before 2050. Climate change has implications for all regions of Europe, with the extent and nature of impacts varying across the continent.

<span class="mw-page-title-main">Energy transition</span> Significant structural change in an energy system

An energy transition is a major structural change to energy supply and consumption in an energy system. Currently, a transition to sustainable energy is underway to limit climate change. As much sustainable energy is renewable it is also known as the renewable energy transition. The current transition aims to reduce greenhouse gas emissions from energy quickly and sustainably, mostly by phasing-down fossil fuels and changing as many processes as possible to operate on low carbon electricity. A previous energy transition perhaps took place during the Industrial Revolution from 1760 onwards, from wood and other biomass to coal, followed by oil and later natural gas.

<span class="mw-page-title-main">South African energy crisis</span> Widespread national level rolling blackouts

South Africa’s energy crisis or load shedding is an ongoing period of widespread national blackouts of electricity supply. It began in the later months of 2007 towards the end of Thabo Mbeki's second term as president, and continues to the present. The South African government-owned national power utility, and primary power generator, Eskom, and various parliamentarians attributed these rolling blackouts to insufficient generation capacity.

<span class="mw-page-title-main">European Green Deal</span> Plan to transform the EU into a climate-neutral economy by 2050

The European Green Deal, approved in 2020, is a set of policy initiatives by the European Commission with the overarching aim of making the European Union (EU) climate neutral in 2050. The plan is to review each existing law on its climate merits, and also introduce new legislation on the circular economy, building renovation, biodiversity, farming and innovation.

Green recovery packages are proposed environmental, regulatory, and fiscal reforms to rebuild prosperity in the wake of an economic crisis, such as the COVID-19 pandemic or the Global Financial Crisis (GFC). They pertain to fiscal measures that intend to recover economic growth while also positively benefitting the environment, including measures for renewable energy, efficient energy use, nature-based solutions, sustainable transport, green innovation and green jobs, amongst others.

<span class="mw-page-title-main">Climate change in South Africa</span> Emissions, impacts and responses of South Africa related to climate change

Climate change in South Africa is leading to increased temperatures and rainfall variability. Evidence shows that extreme weather events are becoming more prominent due to climate change. This is a critical concern for South Africans as climate change will affect the overall status and wellbeing of the country, for example with regards to water resources. Just like many other parts of the world, climate research showed that the real challenge in South Africa was more related to environmental issues rather than developmental ones. The most severe effect will be targeting the water supply, which has huge effects on the agriculture sector. Speedy environmental changes are resulting in clear effects on the community and environmental level in different ways and aspects, starting with air quality, to temperature and weather patterns, reaching out to food security and disease burden.

<span class="mw-page-title-main">48th G7 summit</span> 48th annual summit of G7 nations

The 48th G7 summit was held from 26 to 28 June 2022 in Schloss Elmau, Krün, Bavarian Alps, Germany. Germany previously hosted a G7 summit in 2015 at Schloss Elmau.

A global energy crisis began in the aftermath of the COVID-19 pandemic in 2021, with much of the globe facing shortages and increased prices in oil, gas and electricity markets. The crisis was caused by a variety of economic factors, including the rapid post-pandemic economic rebound that outpaced energy supply, and escalated into a widespread global energy crisis following the Russian invasion of Ukraine. The price of natural gas reached record highs, and as a result, so did electricity in some markets. Oil prices hit their highest level since 2008.

The South Africa Just Energy Transition Investment Plan (JET-IP) is a $8.5bn deal to help South Africa (ZA) decarbonise its economy, struck at COP26 in 2021. This Just Energy Transition Partnership is a cooperation between the governments of ZA, France, Germany, the United Kingdom, the United States and the European Union. It aims to help South Africa achieve the goals set out in its nationally determined contribution to the Paris Agreement, and prevent emissions of 1 to 1.5 gigatonnes of greenhouse gas emissions. The South African JETP was a model for a subsequent similar agreement on coal power in Indonesia, known as the Indonesia Just Energy Transition Partnership.

The Indonesia Just Energy Transition Partnership is a 20 billion dollar agreement to decarbonise Indonesia's coal-powered economy, launched on 15 November 2022 at the G20 summit. This Just Energy Transition Partnership comes after the first such agreement, the South Africa JET-IP was announced in 2021 as a partnership with Germany, France, the UK and US. The agreement with Indonesia involves all G7 countries as partners, including Canada, Italy and Japan. It also includes Denmark and Norway. The JETP aims to develop a comprehensive investment plan to achieve Indonesia's decarbonisation goals.

References

  1. "Just Energy Transition Partnerships: An opportunity to leapfrog from coal to clean energy". International Institute for Sustainable Development. Retrieved 2023-12-16.
  2. "Indonesia Just Energy Transition Partnership Launched at G20". GOV.UK. Retrieved 2022-11-15.
  3. antaranews.com. "Indonesia negotiating funding cooperation for energy transition". Antara News. Retrieved 2022-11-14.
  4. "G7 offered Vietnam and Indonesia $15B to drop coal. They said 'maybe'". POLITICO. 2022-10-26. Retrieved 2022-11-14.
  5. "Deutsche G7-Präsidentschaft treibt ambitionierte Just Energy Transition Partnerships voran". Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung (in German). Retrieved 2022-11-14.
  6. Lo, Joe (2022-11-07). "As Cop27 kicks off, where are the coal to clean deals at?". Climate Home News. Retrieved 2022-11-14.
  7. "U.S., Japan to offer Indonesia $15 bln in energy transition funds-Bloomberg News". Reuters. 2022-11-11. Retrieved 2022-11-15.
  8. "Press corner". European Commission - European Commission. Retrieved 2022-11-16.
  9. "Indonesia JETP - Accelerating Indonesia's Decarbonisation Timeline". Mayer Brown. Retrieved 2022-11-16.
  10. "How Indonesia, a major fossil-fuel user, plans to decarbonise". The Economist. ISSN   0013-0613 . Retrieved 2022-11-17.
  11. "ADB and Indonesia Partners Sign Landmark MOU on Early Retirement Plan for First Coal Power Plant Under Energy Transition Mechanism". Asian Development Bank. 2022-11-14. Retrieved 2023-07-19.
  12. "Launch of a Just Energy Transition Partnership". elysee.fr. 2023-06-22. Retrieved 2023-12-16.
  13. van Diemen, Ethan (2022-11-12). "DISPATCH FROM COP27: What the world is learning from South Africa's nascent Just Energy Transition Investment Plan". Daily Maverick. Retrieved 2022-11-14.
  14. Ghazi, Saarah (2022-11-08). "Unpacking South Africa's R1.5trn JET IP unveiled at COP27". Oxford Economics. Retrieved 2022-11-14.
  15. EC (7 November 2021). "Joint Statement: South Africa Just Energy Transition Investment Plan". European Commission – European Commission. Retrieved 2022-11-14.
  16. "France, Germany, UK, US and EU launch ground-breaking International Just Energy Transition Partnership with South Africa". European Commission - European Commission. 2 November 2021. Retrieved 2023-07-19.
  17. 1 2 "Factsheet: Eskom Just Energy Transition Project in South Africa". World Bank. Retrieved 2023-07-19.
  18. "Political Declaration on establishing the Just Energy Transition Partnership with Viet Nam". European Commission - European Commission. Retrieved 2023-12-16.
  19. "Energy Transition Partnership - Vietnam". www.energytransitionpartnership.org. Retrieved 2023-12-16.