September 8, 2023
JAKARTA – The Financial Services Authority (OJK) is considering labeling coal-fired power plants “green” if they are connected to supply chains for sustainable industries, such as those of electric vehicles (EVs).
Experts have criticized the idea and said such a move would be a major step back in the country’s commitment to limit carbon emissions. Rather than mobilizing investment for the country, categorizing the burning fossil fuels to produce electricity as a green business activity would undermine the credibility of the taxonomy and hurt the country’s financial firms.
Indonesian Green Taxonomy (THI) Version 1.0 was released last year, but OJK chairman Mahendra Siregar said the agency was in the process of revising the document in response to changes made to the ASEAN Taxonomy for Sustainable Finance in June.