Search

Responding to the Paris Agreement and climate change mitigation, Indonesia aims to reach net zero by 2060 or sooner. Due to Indonesia's dependence on coal and growing consumption, alternative sources of clean energy are imperative for meeting its rising energy needs and reducing energy-related greenhouse gas emissions to achieve the energy transition. This project aims to examine Indonesia's opportunities and potential to achieve low carbon ambition in the energy sector and identify alternative pathways for the energy transition in Indonesia. In this study, the open-source energy modelling system (OSeMOSYS), which is a long-term energy system modelling tool, is employed to compare electricity generation, investment, and carbon dioxide emissions between business-as-usual and five alternative scenarios. Six scenarios, including business as usual, least-cost, two coal-phrase out and two net zero aligned with national climate targets and optimal scenarios, were simulated across different target years. The results show that the net zero (NZ) scenario is more cost-effective and emits fewer greenhouse gases than the other scenarios in meeting Indonesia's future energy demand. However, achieving net zero by 2050 (NZ50) results in significantly lower CO2 emissions (10,134 MtCO2), which is less than half of the emissions in the net zero by 2060 (NZ60) scenario (16,849 MtCO2) at a similar cost (6229 and 6177 billion USD, respectively). This paper's insights emphasise that large-scale renewable energy deployment and coal retirement are critical pathways to reaching carbon neutrality and achieving the energy mix transition. [ABSTRACT FROM AUTHOR]

Most countries, notably those that signed the Paris Climate Agreement, prioritize achieving the zero carbon or carbon neutrality aim. Unlike earlier studies, this one assesses the contribution of environmental policy, clean energy, green innovation, and renewable energy to the E7 economies' achievement of carbon neutrality goals from 1990 to 2019. Findings emanating from the study show that the EKC hypothesis is valid in E7 countries. Implying that emissions in the E7 countries increased with the kick-off of development but declined later due to possible potent environmental regulatory policies put in place. Similarly, across all models, renewable energy (REN), green innovations (GINNO), environmental tax (ETAX), and technological innovations (TECH) were found to exert a negative and significant impact on carbon emissions in the E7 countries both in the short and long run. On the other hand, economic expansion (GDP) positively impacts environmental deterioration. Furthermore, the country-specific result shows that, on average, Brazil, India, China, Russia, Mexico, and Indonesia have significant environmental policies aiding carbon abatement. Except for Brazil, Mexico, and Indonesia, the income growth in the rest of the countries does not follow the EKC proposition. Furthermore, the causality result revealed a unidirectional causal relationship between GDP, REN, and GINNO to CO2 emission. No causality was found between ETAX with CO2, while a bi-directional causality exists between technology and CO2 emissions. Based on the finding, policymakers in the E7 countries should move away from fossil fuels because future electricity output will not be sufficient to reduce emissions considerably. Environmental regulations, encouraging technological innovation, adopting green and sustainable technology, and clean energy sources, among other things, demand radical and broad changes. [ABSTRACT FROM AUTHOR]