Context of the action

At the signing of the Paris Agreement in 2015, Indonesia was the world’s fourth-largest emitter of greenhouse gases. In 2020, it submitted a Nationally Determined Contribution (NDC) that aims to achieve net-zero emissions by 2060. It is the world’s 16th biggest economy and the largest economy in South-East Asia, and its emissions stem primarily from deforestation and peatland megafires and, to a lesser extent, the burning of fossil fuels for energy.

The EU and Indonesia cooperate under the EU-Indonesia Joint Committee, established under the Partnership and Cooperation Agreement that came into effect in 2014. In addition, a Working Group on Environment and Climate Change has been established, with the first meeting of this group held in February 2017 in Jakarta.

SPIPA action

As a follow-up to the second meeting of the Working Group on Environment and Climate Change, held in Brussels in March 2018, SPIPA supported Indonesia’s development of climate change actions and engaged in exchanges with the country’s Ministry of Finance, notably through supporting the draft of the Climate Change Fiscal Framework (CCFF) Policy Document, which was subsequently issued by the Ministry in 2022. Moreover, through SPIPA, the EU commissioned dedicated desk studies on carbon tax, green recovery, forestry, and financing the Indonesian net-zero emission strategy.

Indonesia was also a part of the SPIPA multi-country activity on Just Transition.

SPIPA action in Indonesia is linked to the following SPIPA result areas:

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Just Transition

Long-term StretegiesLong-term Strategies
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