POLICY BRIEF© 2023 International Institute for Sustainable DevelopmentWhat Can Indonesia Learn from South Africa’s Experience of the Just Energy Transition Process?Anissa Suharsono, Martha MaulidiaJuly 2023Just Energy Transition Partnerships and the Importance of Accelerating Energy Transition Just Energy Transition Partnerships (JETPs) are essentially a financing mechanism agreed between a group of industrialized countries and a developing country, designed to fund a transition of the coal-dependent developing nation away from fossil fuel production and consumption toward low-carbon energy while addressing the social consequences involved. As of May 2023, JETP deals have been announced for South Africa, Indonesia, and Vietnam. In a nation where coal plays an important role in the economy, robust social and economic measures must be taken and included in the JETP plans, as transitioning away from coal will affect a significant portion of the population.Finance provided under the JETP may include grants, loans, and investments, and, as of March 2023, the donor group includes the International Partners Group (IPG) and the Glasgow Financial Alliance for Net Zero Working Group. The IPG represents the donor countries, made up of Canada, Denmark, the European Union, France, Germany, Italy, Japan, Norway, the United Kingdom, and the United States. The Glasgow Financial Alliance for Net Zero Working Group represents over 550 major financial institutions from 50 countries, such as HSBC and Citibank (Kusuma, 2023).The JETP scheme was first announced at the UN Climate Change Conference (COP 26) in November 2021. It was described at the time as a long-term partnership designed to support the Republic of South Africa in de...
