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What is "Just Transition"?

Mitigating inequality with emissions? Exploring energy justice and financing transitions to low carbon energy in Indonesia

This article analyzes energy justice in Indonesia’s transition to low-carbon energy and explores how policies have exacerbated energy injustice.

Detail

This article explores Indonesia’s efforts to reduce energy poverty in its transition to low-carbon energy, with a particular focus on how distributive, procedural, and recognition justice has been included in policies aimed at increasing private investment in renewable energy electrification. Based on the analysis derived from qualitative interviews, field observation, and the review of government documents and policies, the author argues that despite Indonesia’s energy justice agenda of providing access to affordable electricity for all, the policies in place do not effectively promote energy justice.

In terms of distributive justice, the author argues that spatial injustice in electricity access is still prevalent, especially in the eastern part of Indonesia, where many communities lack reliable energy access. The author suggests that many renewable rural electrification projects may exacerbate this spatial inequality by supplying households and cities that have access to a grid network, while neglecting communities that live closest to the electricity generation sites. This is partly due to the government’s encouragement of private investment that favors large-scale projects, thereby further exacerbating geographic inequalities. The author argues that procedural injustice is also prevalent in the energy decision-making processes due to a lack of transparency in the current bidding and procurement processes and limited space for the public participation and engagement in decisions. In terms of recognition, the author asserts that marginalized communities living in areas, where electricity is not considered economically favorable, are neglected and denied electricity access.

The author also makes suggestions for better ways to incorporate energy justice principles into policies and programs. First, energy policies should include more inclusive approaches, such as encouraging public participation and increasing transparency. Second, energy policies need to incentivize diversity beyond large-scale and on-grid projects to effectively target those most affected by energy poverty. Third, contextually grounded approaches best suited to the needs of local communities should be prioritized. Finally, public finance should also be considered in addressing the needs of those most vulnerable to energy poverty.

A Just Transition for Whom? Politics, Contestation, and Social Identity in the Disruption of Coal in the Powder River Basin

This case study on the Powder River Basin in Wyoming examines the impact of the sudden shutdown of two large coal mines on local perceptions toward the energy transition and just transition policies.

Detail

This case study examines whether attitudes toward the U.S. energy transition and just transitions changed following the bankruptcy and closure of two large coal mines in 2019 in the Powder River Basin (PRB) in Wyoming. PBR, the largest coal-mining region in the United States, is home to highly productive and environmentally sustainable mechanized mining and lucrative mining jobs.

The author sets out to empirically determine whether conditions exist that allow for decreased opposition to the transition and increased support for government intervention. The analysis relies on interviews from 13 local individuals, including elected officials, advocates, government officials, a local reporter, and coal industry professionals—but no coal industry workers, as they declined to be interviewed.

The interviews suggest the sudden closure of two mines reinforced negative perceptions toward the energy transition. In fact, there is strong support for continuing to develop the coal mining industry, with advocates claiming that the less invasive mechanized mining used in the region means that PRB coal is an environmentally sustainable option. The transition remains heavily contested in the area because of the strong economic impact of the coal industry on the PRB and the deep cultural ties to mining in the area. Additionally, because of its remoteness and distance from transportation hubs, there is little impetus for economic diversification in the PRB.

Indonesia’s Energy Transition and Its Contradictions: Emerging Geographies of Energy and Finance

This case study examines several problems associated with the recent surge in international solar power investment in Indonesia, including the concentration of projects in areas that already have affordable and reliable energy access.

Detail

This case study examines the implications of a surge in international investment in solar power in Indonesia since 2015. The spike in international investment partly reflects a broader shift from investment in the Global North’s established renewable energy markets to investment in emerging markets. Regulatory changes by Indonesia’s Ministry of Mineral and Energy Resources, which aimed to add 3.6 gigawatts of installed solar capacity between 2017 and 2019, also helped attract investment.

The surge in investment, however, does not fully align with Indonesia’s stated electrification goals. While foreign developers’ proposed projects will increase the country’s overall installed solar capacity, the investment landscape does not promote the small-scale, off-grid projects that would provide affordable and reliable electricity to the 25 million Indonesians currently without access. Additionally, the new pattern of investment has triggered a shift toward large-scale, centralized projects and more complex and opaque ownership structures as private financial institutions enter the market.

While investment has helped raise Indonesia’s installed solar capacity, it has done little to address the needs of the millions of Indonesians still without access to power. The current transition path has limited ability to achieve social and political transformations, suggesting a need for more thorough planning.