Green Recovery

With the dawn of COVID-19, there is an immediate need for policymakers to create an investment environment that nudges capital flow towards decentralized renewable energy.

Indonesia has a unique opportunity to learn from past mistakes and build a recovery that improves the country’s chances for economic stability and growth.

The trend of low power demand, now furthered in the post-COVID economy, and increased RE generation, will continue to put a ceiling on the PLF of the thermal fleet.

Sharing the burden of combating the coronavirus could set an inspiring precedent for a just transition to combat climate breakdown—which will have fare more dire economic and health impacts than the current pandemic. If the current systemic shock of the coronavirus crisis jolts countries into action, maybe then they can create a truly European Green Deal.

Like the coronavirus, climate change will affect everyone globally, albeit on a scale of decades and centuries rather than months and years. It too will not distinguish between caste, color, creed, religion, or national boundaries, and like the coronavirus, climate change will have its greatest impact on the poor and most vulnerable.

A long-term stimulus to tackle the crisis should have incentives for the kind of economy we want – green, clean, inclusive, and efficient.

A deep economic crisis is expected in the wake of the COVID-19 pandemic health crisis. We applaud the quick action of governments in supporting health workers and institutions, the business sector, and different communities. However, if taxpayer-funded bailouts are not implemented properly we can worsen another crisis: global climate change.

As we move forward past this crisis, policymakers should have resilience in the front of their minds. There are some practical steps that can be taken in our policy response not only to enable us to boost green growth and reduce greenhouse gas emissions but also to create a more resilient financial system.