WCA begins implementation of PACE

15th Sep 2016

On 6 September the World Coal Association, as part of its global Platform for Accelerating Coal Efficiency (PACE), in partnership with the Ministries of Environment & Forestry and Energy & Natural Resources of Indonesia, held a workshop: “Building Pathways for High Efficiency Low Emissions Coal Technology in Indonesia”.

Indonesia is the world’s second largest coal exporter and the fourth-largest coal producer. National government officials made it clear during the workshop that Indonesia will continue to use coal. In fact, by 2050, coal will still represent 25% of the energy mix.

With more than 39 million people lacking electricity and in the process of substantial economic growth and social change, Indonesia will continue to use coal because it is an affordable, reliable and abundant resource. Coal is the resource that can allow Indonesia to meet both its energy and industrialisation demands.

As part of the United Nations 2030 Development Agenda, Indonesia needs coal to achieve its Sustainable Development goals and to provide electricity for all its population.

How to bring energy policy in line with Indonesia’s commitments on climate action was broadly discussed also during the workshop. The workshop brought together a mix of national and international stakeholders. The speakers included national government officials, representatives of the IEA Clean Coal Centre, the ASEAN Centre for Energy and NEDO, private sector stakeholders like PwC, equipment manufacturers such as GE, financial institutions like JBIC, electricity companies like PT, Bhimasena Power Indonesia, TERI of India and the Indonesian Coal Mining Association.

The workshop concluded that for Indonesia to make its use of coal compatible with the Paris Agreement’s goals, the country needs High Efficiency Low Emission (HELE) coal technologies.

The Paris Agreement, adopted in December 2015, sets a goal of keeping the global average temperatures well below 2°C above pre-industrial levels and pursues efforts to limit temperature increase to 1.5°C above pre-industrial levels.

To work towards those goals, Indonesia has set in its Intended National Determined Contribution (INDC) a target of unconditional 29% emissions reduction - compared to business as usual - by 2030 and to achieve a 41% emissions reduction by that year, if the required international support is provided.

As the success of the Paris Agreement relies in the implementation of the Intended Nationally Determined Contribution (INDCs), it is important that the countries keep the ambition in its commitments and that this ambition is reflected in its National Determined Contributions, once the Paris Agreement enters into force.

HELE coal technologies are important mitigation tools that will strengthen Indonesia’s ability to deliver its NDC commitments. HELE technologies increase the efficiency of a coal-fired power plant while achieving greenhouse gas (GHG) emission reductions, in particular carbon dioxide (CO2) and non GHG emissions such as nitrogen oxide (NOx), sulphur dioxide (SO2) and particulate matter (PM).

With HELE coal technologies, Indonesia will be able to continue using coal in order to achieve electricity for all its population while delivering on its climate commitments. For this purpose and as one of the main outcomes of the workshop, Indonesia will elaborate a HELE roadmap, with the support of the WCA and other international and national partners. Such a roadmap will be an important part of Indonesia’s NDC.

During the workshop, financial support, technology transfer and capacity building were identified as the main challenges for the deployment of HELE technologies. A HELE roadmap intends to address those challenges.

As PACE intends, WCA is working with Indonesia in order to set the right partnership to support the deployment of HELE coal technologies. This partnership will provide Indonesia with international financial and technological support, including capacity building.

The role of international financial institutions such as the World Bank, the Asian Development Bank and the Asian Infrastructure Investment Bank is critical in these endeavours. WCA calls on them to be part of the mentioned partnership to support Indonesia’s efforts.