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Climate Change

Indonesia needs $200bn a year until 2030 for net-zero emissions

Cutting fuel subsidies and selling carbon units are options to boost coffers

A coal mine in Tabalong, Kalimantan island. Indonesia is the world's largest thermal coal exporter and its population is heavily reliant on the commodity for energy.   © Antara Foto / Reuters

JAKARTA -- Indonesia will need $200 billion per annum in the next decade and over $1 trillion annually in the next four decades to achieve its target of net zero carbon emissions by 2060, a recent government study showed, highlighting the need for massive financing in a country heavily reliant on coal.

The 108-page report was issued by Bappenas, a ministry responsible for national development planning, in light of carbon dioxide reduction development "tak[ing] a backseat following economic and social challenges resulting from the COVID-19 pandemic" despite it being a pillar of the country's mid-term national development plan, the report said.

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