Norway Signs Climate Deal with Indonesia to Support Transition Away from Coal Power
Norway has signed a climate agreement with Indonesia that opens the door for the purchase of carbon credits, with the aim of supporting the country's transition away from coal power and reducing greenhouse gas emissions. The deal involves Norwegian financing of renewable energy projects in Indonesia, particularly investment in floating solar power plants.
Climate and Environment Minister Andreas Bjelland Eriksen (Labour Party) stated that the agreement is a good example of how international cooperation can deliver real emissions reductions. "This agreement with Indonesia is an important step towards phasing out coal, reducing emissions, whilst also creating jobs and attracting investment," said Bjelland Eriksen.
Indonesia largely produces electricity from gas-fired power plants, which currently generate significant greenhouse gas emissions. The country is now investing in floating solar power plants on water reservoirs. Norway's Ministry of Climate and Environment has indicated that Norwegian financing will not only support new solar power plants but also the development of necessary infrastructure to scale up solar investment and avoid the construction of new coal-fired power plants.
Norway's goal of being climate neutral from 2030, adopted by the Storting (Norwegian parliament), involves cutting its own emissions as much as possible and financing emissions reductions in other countries to cover the remainder. The new climate target is to cut emissions by 70 to 75 per cent by 2035, compared with 1990 levels.
The purchase of carbon credits is not uncontroversial in Norway. The Green Party (MDG) has recently criticised the government for the practice, with MDG leader Arild Hermstad stating that the government, the Conservative Party and the Liberal Party are ensuring that Norway can meet its climate targets by purchasing credits in other countries rather than making deeper cuts at home.
The agreement between Norway and Indonesia is reportedly part of a growing international cooperation to accelerate the green transition in developing countries, where financing from wealthier nations contributes to renewable energy development and emissions reductions in countries with high emissions intensity.
Climate and Environment Minister Andreas Bjelland Eriksen (Labour Party) stated that the agreement is a good example of how international cooperation can deliver real emissions reductions. "This agreement with Indonesia is an important step towards phasing out coal, reducing emissions, whilst also creating jobs and attracting investment," said Bjelland Eriksen.
Indonesia largely produces electricity from gas-fired power plants, which currently generate significant greenhouse gas emissions. The country is now investing in floating solar power plants on water reservoirs. Norway's Ministry of Climate and Environment has indicated that Norwegian financing will not only support new solar power plants but also the development of necessary infrastructure to scale up solar investment and avoid the construction of new coal-fired power plants.
Norway's goal of being climate neutral from 2030, adopted by the Storting (Norwegian parliament), involves cutting its own emissions as much as possible and financing emissions reductions in other countries to cover the remainder. The new climate target is to cut emissions by 70 to 75 per cent by 2035, compared with 1990 levels.
The purchase of carbon credits is not uncontroversial in Norway. The Green Party (MDG) has recently criticised the government for the practice, with MDG leader Arild Hermstad stating that the government, the Conservative Party and the Liberal Party are ensuring that Norway can meet its climate targets by purchasing credits in other countries rather than making deeper cuts at home.
The agreement between Norway and Indonesia is reportedly part of a growing international cooperation to accelerate the green transition in developing countries, where financing from wealthier nations contributes to renewable energy development and emissions reductions in countries with high emissions intensity.