Indonesia is at the heart of the next decade of growth in Asia. It also is at the frontier of Chinese industry’s move to develop clean energy markets overseas. The Indonesian government and Chinese investors are aligned on a narrative of decarbonization, but on the ground, coal remains central.

Indonesia’s economy is on a roll. The archipelago nation harbors ambitions for 8% growth a year on its growing strength as an exporter of coal, palm oil, LNG, and stainless steel made from its booming nickel mining industry.

Investments from China are driving this growth—and run the gamut from traditionally dirty industries (mining, steel, and aluminum) to the crown jewels of Chinese clean energy tech: batteries,  electric vehicles (EVs), and solar panel production. In 2023, Xinyi Glass, the world’s largest solar PV panel maker, announced an 11.5 billion USD investment in a quartz sand processing plant in Indonesia. 

Energy is a bridge that has historically fostered the U.S.-India relationship. The reasons are many. Both economies focus on energy security, climate action, economic cooperation, and technological innovation.  

Recent innovations in India offer new challenges and opportunities. The country has rapidly deployed renewable energy (RE) technologies to meet its stated Net Zero targets. This effort has exceeded its promises; 40% of India’s electricity now comes from renewable sources. And the nation’s other ambitious target— installing 450 GW—would triple this existing capacity in less than ten years.

A window into what we are reading at the Wilson Center’s Environmental Change and Security Program

How One Loss and Damage Fund Bore Fruit (The Guardian)  

The Loss and Damage Fund established during the UN COP27 was a monumental breakthrough in the climate finance realm and aimed to provide financial assistance to vulnerable nations impacted by climate change. Such damage can be catastrophic. When Cyclone Freddy hit Malawi in 2023, it killed 1,200 people and displaced 659,000 more. The estimated economic loss exceeded $1 billion, and it landed especially hard on farmers—including the women who make up more than 70% of Malawi’s agricultural workforce. 

In 2023, I embarked on a journey with a group of energy policy researchers from Beijing to visit several Chinese coal cities. We wanted to understand the implementation of China’s decarbonization policies in the heartland of coal mining. As we drove into a coal-rich town in western Shanxi Province, the narrow roads were filled with loud rumbling coal trucks. Amid soot-streaked buildings, newer homes housed families who were relocated from areas affected by coal mining subsidence. The town’s existence hinged on coal. Yet, this dependency has an expiration date — the local mines will be depleted in 10 to 15 years.

Environmental Prize Winners Highlight Local Communities’ Fight Against Fossil Fuels (New York Times)

On Monday, several environmental leaders won the Goldman Environmental Prize, which the Goldman Environmental Foundation awards annually to grassroots environmental activists from each of the world’s six geographic regions. This year’s prize comes as environmental advocacy groups, especially indigenous ones, increasingly fight legal battles against companies or government entities that wish to use their land for oil and gas acquisition or coal mining.

In a time where climate action is urgent, there are debates how China’s “eco-authoritarianism” can move climate and environmental policies faster than in liberal democracies. Although eco-authoritarianism has some benefits, it is no “green bullet” as divisions between China’s central and local governments and a lack of civic participation can slow or derail some climate and pollution policies.

China’s Belt and Road Initiative (BRI) can significantly affect the country’s domestic and overseas energy transition and decarbonization agenda. Electricity projects in China’s BRI investments, contrary to popular impressions of being part of a monolithic “project of the century,” have divergent implications for the host country’s shift away from coal-based power plants.