Supportive Innovative Mechanisms for Industrial Energy Efficiency Financing in Indonesia with Lessons for Replication in other ASEAN Member States

Indonesia requires urgent action to address its increasing emissions, especially in rapidly growing industrial energy sector. The market penetration of energy efficient technologies and the ensuing energy savings have been hampered by a range of barriers, including access to finance, regulatory challenges, and lack of capacity and awareness amongst relevant stakeholders. This program will increase Indonesia’s capacity to drive a low-carbon development pathway with enhanced energy efficiency and conservation performance by addressing these chronic barriers. The program provides a package of innovative energy efficiency solutions including financial de-risking mechanisms, exploration of new energy service business models, development of a supportive regulatory framework, and technical assistance. This program targets 3.1 million tons CO2ek of greenhouse gas emissions reduction in Indonesia.

Program ini akan meningkatkan kapasitas Indonesia untuk menuju jalur pembangunan rendah karbon dengan peningkatan kinerja penghematan energi dan konservasi dengan mengatasi hambatan kronis ini. Program ini menyediakan solusi penghematan energi yang inovatif seperti mekanisme pengurangan risiko finansial, eksplorasi terhadap model bisnis jasa energi baru, pengembangan kerangka kebijakan pendukung, dan bantuan teknis. Program ini menargetkan pengurangan emisi gas rumah kaca sebesar 3.1 juta ton CO2ek di Indonesia.