The world’s wealthiest countries make a big show of fighting climate change without offering poorer countries the finances to switch to renewable energy.
Fighting global warming is not just about providing a path to net-zero carbon emissions for all countries. It is also about figuring out how best to meet the energy needs of people across the world while working toward net-zero emissions. If fossil fuels have to be given up, which has now become an urgent need given the current environmental challenges, countries in Africa and a significant part of Asia, including India, need an alternate path for providing electricity to their people. What then is the best alternate course for poorer countries to follow for electricity production—if they do not use the fossil fuel route—that is being used by rich countries? This in turn also raises questions about how much this alternative energy source route will cost poorer countries, and who will pay the bills incurred when making the switch to this new source of energy.
Discussions on these issues, which are pertinent to resolving the climate crisis, were completely absent from the COP26 agenda, which concluded on November 13. The financing of a low carbon emission path was conveniently delinked from commitments toward cutting down carbon emissions and now faces an uncertain future, with developed countries failing to live up to their earlier “pledge” of providing finance to developing nations to “help them adapt to climate change and mitigate further rises in temperature.”
Some numbers are important here to understand the extent to which developing nations have contributed to the present climate crisis and to greenhouse gas emissions. The European Union plus the UK (EU-UK) produce more than twice the carbon emissions of the entire continent of Africa, with less than half of Africa’s population. With less than a quarter of India’s population, the United States emits significantly more carbon than India does—almost twice as much.
It is argued that as the cost of electricity from renewables has now fallen below the cost of electricity from fossil fuels, it should be possible for all countries, rich or poor, to phase out fossil fuels completely and shift to renewable energy sources without addressing the issue of funding. It is true that the cost per unit of electricity generated with renewables is lower today than that from fossil fuels. What has, however, been overlooked here is that for poor countries to make this switch, they would need to build three or four times the capacity to generate electricity from renewables to supply the same amount of energy that they currently get from fossil fuel plants. This is because the capacity factor or the plant load factor (PLF)—how much electricity a plant produces compared to what it can produce by working continuously at full capacity—for renewable energy sources is about 20-40 percent that of fossil-fueled plants. The wind does not blow all the time; nor does the sun shine at night. That means that a country will have to build several times the capacity—and therefore invest more capital—using the renewable route to generate the same amount of electricity it would get from fossil-fueled plants.
This level of investment in renewables by a rich country may not be a problem. But for a poor country trying to build its basic infrastructure of electricity, roads, railways and other public infrastructure, including schools, universities and health care institutions, this switch to renewables will not be easy without financial support from the rich countries. This is why the rich countries asking the poor countries to make net-zero pledges without committing to providing them with any money is completely hypocritical. Tomorrow, the rich countries can—and most probably will—turn around and say that the poor countries made the commitment toward ensuring net-zero emissions, and they should now borrow from the rich countries at high interest rates and make good on their promises, or else face sanctions. In other words, this would lead to a new form of green colonialism.
The second problem with renewables as the main source of electricity is that there are significant additional costs for setting up the grid for short-term or long-term storage of electricity. This is to balance the daily fluctuations or the seasonal fluctuations that may arise. For example, in 2021, Germany saw a significant slowing down of winds in summer, leading to a sharp fall in electricity generated from wind. In their case, Germany balanced the low production of wind power by increasing the production of electricity from coal-fired plants, leading to their greenhouse gas emissions going up significantly. In a scenario in which coal-fired plants do not exist, what will countries do when renewable energy capacity fluctuates?
While daily fluctuations for countries using renewable energy sources can be met with large, grid-sized batteries, this is not feasible for seasonal variations. These countries will have to either use pumped storage schemes with hydroelectric power or store hydrogen in large quantities for use in fuel cells. A pumped storage hydroelectric scheme means pumping water up to a reservoir when there is surplus power available for the grid, and using it to produce electricity when there is a shortfall. Storing hydrogen in quantities large enough to meet seasonal grid requirements is still another idea that needs to be explored and assessed for its technical and economic feasibility.
The point here is that shifting to a grid, which is entirely based on renewable energy, is still technologically some time away. We need to develop new technologies for storing energy. And we may need to use concentrated sources of energy—fossil or nuclear—to meet the requirement of daily or seasonal fluctuations until that time.
The other possibility is using fossil fuels without greenhouse gas emissions. It means not letting the carbon dioxide escape into the atmosphere and, instead, pumping it into underground reservoirs; or what is called carbon capture and sequestration. Such carbon capture projects in rich countries were given up in the belief that renewables would solve the problem of carbon emissions. It is now clear that having renewables as the only source of energy in a grid is not enough, and the world may need to look for other solutions as well.
Meanwhile, in the short term, nuclear power does not appear to be a permanent solution to moving toward cleaner energy sources as “there is not enough time for nuclear innovation to save the planet,” according to a recent article in Foreign Affairs. This means gas, oil, and coal are the only short-term solutions before us for meeting long- and short-term fluctuations in energy production. And here, the duplicity of the rich countries becomes clear. Rich countries like Europe and the U.S. have enough gas resources. Poorer countries like India and China do not; they only have coal resources. Instead of discussing how much greenhouse gases each country should emit, the rich countries decided to focus on what fuel needs to be phased out. Yes, coal emits twice the amount of carbon dioxide compared to gas-fired power plants for the production of the same amount of electrical energy. But if countries produce twice the amount of electricity from gas-fired power plants as from coal, they will still produce the same amount of carbon emissions. If the U.S. or the EU-UK are producing more carbon emissions than India or Africa—which have larger population sizes—why ask for phasing out coal only, while no such targets are set by the U.S. or EU-UK for phasing out their carbon emissions by using gas-fired power plants?
This is where the energy justice issue becomes important. The U.S. per capita energy use is nine times that of India, while the UK’s per capita energy use is six times more than that of India. If we consider countries in sub-Saharan Africa such as Uganda or the Central African Republic, their energy consumption is even lower, i.e., the U.S. consumes 90 times, the UK 60 times more energy than these countries! Why should we then talk only about which fuels need to be phased out and not about by how much countries need to immediately cut their carbon emissions?
I am not raising here the issue of an equitable share of the carbon space, and if a country has used more than its fair share of carbon space, how it should compensate the poorer countries for it. I am simply pointing out that by talking about net-zero emissions and phasing out certain fuels, the rich countries are continuing on their path of excess carbon emissions while changing the goalposts for others.
The last word on hypocrisy is Norway’s. At a time when it is expanding its own oil and gas production, Norway, along with seven other Nordic and Baltic countries, has been lobbying the World Bank “to stop all financing of natural gas projects in Africa and elsewhere as soon as 2025,” according to an article titled, “Rich Countries’ Climate Policies Are Colonialism in Green” in Foreign Policy magazine, which has been written by Vijaya Ramachandran, director for energy and development at the Breakthrough Institute.
While Norway may have been the most blatant, 20 countries moved similar resolutions in COP26 to end “financing for fossil fuel development overseas,” according to the Guardian. For them, climate change negotiations are the way to keep their dominant energy positions while denying not only climate reparations but also finances to the poorest of countries that are trying to provide their people with subsistence energy.
It is clear that no country in the world has a future if it does not stop the continued emission of greenhouse gases. But if rich countries do not also find a path for the poorer countries to meet their minimum level of energy needs, they will see the collapse of huge swaths of their own countries. Is it logical to think that countries in sub-Saharan Africa can continue living on a ninetieth of the energy consumption of the U.S. without there being consequences for all countries?
Indian Prime Minister Narendra Modi and his followers may believe that India is on the way to becoming a developed country, even a superpower. The fact is that, in per capita electricity consumption, India is, in fact, closer to Africa than to China or the club of the rich nations, the U.S., the UK, and those in the EU. Addressing climate without energy justice is only a new version of colonialism, even if it’s clothed in green. Ramachandran calls this out for what it is, writing: “Pursuing climate ambitions on the backs of the poorest people in the world is not just hypocritical—it is immoral, unjust, and green colonialism at its worst.”
By Prabir Purkayastha is the founding editor of Newsclick.in, a digital media platform. He is an activist for science and the free software movement.
PT Rig Tenders Indonesia Tbk Sustains Positive Performance Growth Until June 30, 2023
Telegraf – PT Rig Tenders Indonesia Tbk (RIGS) continues to register positive performance growth until June 30, 2023.
RIGS successfully garnered a profit of IDR 62.51 billion, a 74.58% increase from the same period the previous year, amounting to IDR 35.80 billion.
According to the financial report, the company’s revenue also grew by 10.44% to reach IDR 341.70 billion, up from the previous IDR 309.37 billion.
“Director of RIGS, Mr. Iriawan Hartana, conveyed this information during a public presentation in Jakarta on November 23, 2023.”
“The company will continue to strive to strengthen its position in the national shipping industry,” said Mr. Iriawan.
He added that the company will continue to develop services that meet market needs while maintaining the distinctive features of the company.
“The company will also continue to explore the possibility of engaging in strategic alliances that benefit our working partners,” added Mr. Iriawan Hartana.
As for the work program in 2023, the company has outlined several initiatives:
- Changing the ownership status of the company’s shares from Foreign Direct Investment (PMA) to Domestic Direct Investment (PMDN) after the share acquisition by PT Surya Indah Muara Pantai.
- Changing the currency in the financial statements from USD to IDR starting from July 2022.
- Changing the ownership structure of the subsidiary Grundtvig Marine, namely PT Batuah Abadi Lines, to directly become a subsidiary of PT Rig Tenders Indonesia, Tbk.
- Implementing sustainable Corporate Social Responsibility (CSR) programs.
OJK Holds Discussion and Socialization on Fulfillment of WPPE, WPEE, WMI, WAPERD Licensing Obligations
Telegraf – The Financial Services Authority (OJK) has released the latest data as of 07 November 2023 at the Discussion & Socialization event on Fulfillment of WPPE, WPEE, WMI, WAPERD Licensing Obligations.
This meeting took place on November 8 2023 at the OJK Mataram building, NTB, with the aim of providing a better understanding to permit holders and prospective permit holders.
The main resource person came from the OJK Capital Market Licensing Directorate.
Naomi Saulina Rentaria Rambe, Senior Analyst Deputy Director of Individual Licensing, Supporting Professionals and Capital Market Supporting Institutions 1.
Devy Arveida, Analyst Deputy Director of Individual Licensing, Supporting Professionals and Capital Market Supporting Institutions 1.
Also present were important figures such as Umar Hidayat, Deputy Head of the NTB OJK Office, GB Ngurah Putra Sandiana, Head of the NTB BEI Representative Office, and Lucky Hisar Manurung, Chair of the Bali Nusa Raya PROPAMI Region, along with license holders from the banking, capital markets and universities in NTB.
In the context of the growth of the capital markets sector, OJK has issued a series of regulations, including;
- OJK Regulation Number 31/POJK.04/2018 concerning Licensing of Investment Manager Representatives,
- OJK Regulation Number 17/POJK.04/2019 concerning Licensing of Mutual Fund Securities Selling Agent Representatives, and
- OJK Regulation Number 20/POJK.04/2018 concerning Licensing of Underwriter Representatives and Securities Broker-Dealer Representatives.
- OJK Regulation Number 22/POJK.04/2016 concerning Licensing Segmentation of Securities Broker-Dealer Representatives
The General Chair of PROPAMI, NS Aji Martono, commented on this development, stating that licensing for capital market players is a crucial step to ensure the integrity of the capital market and provide legal certainty and protection to investors.
OJK emphasizes the importance of licensing for various roles in the capital market, such as WMI (Deputy Investment Manager), WAPERD (Representative Mutual Fund Securities Selling Agent), and WPPE (Deputy Underwriter).
License holders must meet strict requirements, including certification of expertise and maintaining moral integrity.
In addition, permit holders are required to work for financial institutions in Indonesia and may not work for more than one securities company or other financial services institution.
All work activities must be reported to the OJK.
OJK provides a platform, namely Sprint (Individual Person Licensing System), as the main means for applying for new permits or extending permits.
Tutorials on YouTube OJK are also provided to make the licensing process easier.
The importance of fulfilling licensing obligations is the main key in ensuring integrity and security in the Indonesian capital market sector.
The permit holder’s commitment to comply with statutory regulations is an important basis for maintaining the credibility of the capital market in the eyes of investors.
It is hoped that strict regulations will strengthen and develop the Indonesian capital market in the future.
Legit Group Secures Rp 205.3 Billion in Series A Funding for F&B Business Expansion
TELEGRAF – Legit Group, a multi-brand cloud kitchen conceptor and operator, has announced the success of its series A funding round, raising a total of US$13.7 million (IDR 205.3 billion) from several investors. The funding was led by MDI Ventures, the venture capital arm of PT Telkom Indonesia Tbk, and followed by Sinar Mas Digital Ventures (SMDV), East Ventures, and Winter Capital. In 2021, Legit Group also successfully raised seed funding worth US$3 million (IDR 43 billion) from East Ventures and AC Ventures, JAKARTA, TUESDAY (11 APRIL 2023).
Founded in 2021, Legit Group currently operates four well-known brands, including Pastaria, Sei’Tan, Sek Fan, and Ryujin, located in over 30 locations in Jabodetabek. Interestingly, Legit Group’s brands do not have any offline locations, but operate using a cloud business model.
This new funding adds optimism to Legit Group to dominate the market through the right marketing strategy in the F&B industry. This confidence is supported by the strong traction the company has gained since the initial funding round, with sales reaching about three times in one month, and launching a new brand.
Bram Hendrata, Chairman of Legit Group said, “We are excited to have a strong group of investors to support us in creating a brand that carries the vision of ‘Food for Everyone’. Through the funding obtained from MDI Ventures, this can strengthen Legit Group’s commitment to bringing more food to various places, while continuing to innovate and improve the technology we have to achieve more efficient operating systems,” said Bram, who has been a veteran in the F&B industry for 15 years.
Currently, Legit Group’s business sector is rapidly growing. While most regular cloud kitchen business owners focus on improving their ability to serve more consumers in new areas, Legit Group has seen the potential for new generation F&B technology that focuses more on developing F&B brands by applying technology to maximize profits. Therefore, Legit Group believes that this focus will provide a competitive advantage in the cloud kitchen market.
Donald Wihardja, CEO of MDI Ventures said, “Legit Group’s founders’ experience, who have succeeded in the F&B business for 15 years, as well as their ability to develop innovative and effective products and marketing strategies, make MDI Ventures more confident that our support as investors will help strengthen their position in the F&B industry and accelerate their business growth. This collaboration is expected to create positive synergy and greater success for both parties. This investment is also an effort by MDI Ventures to provide a positive social impact on the growth of the agriculture sector in Indonesia.”
Amidst the macroeconomic conditions that often demand startup businesses to remain profitable, Legit Group has set its top priority to achieve economic balance while continuing to strive for a healthy economic unit. To achieve this goal, Legit Group has announced its plan to expand in 2023, targeting Jabodetabek and other cities that have great potential for delivery market, after 95% of Legit Group’s outlets were previously spread across several locations in Jakarta.
“Through the support from various parties, strategic approaches, and our commitment to product quality excellence, we believe we can continue to produce products that…
MKI Teams up with Enlit Asia to Host the Most Influential Electricity and Energy Sector Meeting in ASEAN
In order to promote the development of clean energy technology in the ASEAN region, the most influential electricity and energy sector meeting in ASEAN
Telegraf – In order to promote the development of clean energy technology in the ASEAN region, the most influential electricity and energy sector meeting in ASEAN will once again be held in Jakarta in 2023, coinciding with Indonesia’s Chairmanship of the ASEAN Summit. This meeting is a partnership between Enlit Asia and the Indonesian Electricity Society (MKI), which will hold two leading events in the electricity and energy business and industry in the ASEAN region, with the support of PT PLN (Persero) as Utility Host and the Ministry of Energy and Mineral Resources.
The Enlit Asia 2023 event and the 78th Indonesian National Electricity Day (HLN 78) will be jointly opened on November 14, 2023, at the Indonesia Convention Exhibition (ICE). This combined event continues the successful partnership that brought the first Powergen Asia to Indonesia and the 73rd Indonesian National Electricity Day in 2018.
This cooperation will bring together more than 350 exhibition participants from around the world who will showcase the latest technologies and innovations that support energy transition throughout ASEAN. It is expected that 12,000 visitors from all over Indonesia and ASEAN will benefit from over 75 hours of free content provided by technology providers and the latest solutions, as well as case studies on the use of the latest technology in the field by IPPs and electric utilities.
This meeting is being held to support energy transition in the ASEAN region and will focus on commercial and strategic issues that will accelerate the transition to a cleaner and more sustainable power system. Over 150 leading speakers in the industry will share their insights simultaneously, where the evolution of traditional energy systems, integration of next-generation clean generation technology, and frameworks and financing supporting this transition will be the focus of the discussion.
With more and more companies participating in the exhibition, including those focused on Carbon Capture and Storage, Hydrogen technology, Energy Storage, Smart Grid, and RE integration solutions including Solar PV and Wind Energy, as well as Nuclear power generation technology, the event is further cementing its position as a leading industry meeting on the ASEAN calendar.
“We are delighted to return to Jakarta and partner with MKI once again. Indonesia is a very important market in the ASEAN region, with the highest electricity demand, projected growth, and active steps being taken to achieve sustainability targets and renew network infrastructure. Partnering with the Indonesian National Electricity Day to see Enlit Asia’s regional reach and capabilities unite key industry stakeholders from across ASEAN, supported by Indonesia’s strong sense of taste, is very important. In 2023, we can promise that this event will fully reflect the strong enthusiasm to drive ASEAN energy transition, supported by the investment appetite of governments, regulators, utilities, and IPPs in this region,” said Richard Ireland, Chief Executive Officer of Clarion Events Asia.
Meanwhile, Arsyadany G Akmalaputri, Secretary General of MKI, explained that this year’s Indonesian National Electricity Day is the third time that MKI has partnered with Enlit Asia in organizing conferences and exhibitions. The 78th Indonesian National Electricity Day and Enlit Asia 2023 event will carry the theme “Strenghtening ASEAN Readiness in Energy Transition: Your Guide to The Energy Transition in Asia”. This year’s program will be different from previous ones, where support for the world’s commitment to implementing energy transition towards cleaner energy has been declared.
In line with Indonesia’s mandate as Chair of ASEAN, ASEAN will continue to be the epicenter of its strong and empowered society growth. The event organized by MKI and Enlit Asia is highly relevant given the scope of exhibition and conference participants
PGEO Boosts Net Profit in 2022 through Efficiency Programs
Telegraf – PT Pertamina Geothermal Energy Tbk. (PGE) (IDX: PGEO), a subsidiary of Pertamina engaged in the geothermal sector, achieved a positive performance in 2022. This positive performance was due to the efficiency program, steam and electricity sales, and other revenue contributions that led to a 49.7 percent increase in the company’s net profit compared to 2021.
The increase in profit was recorded in the company’s audited financial report, which was publicly released on March 30, 2023. In the report, PGE recorded a net profit of USD 127.3 million in 2022, significantly higher than its 2021 achievement of USD 85 million.
Throughout 2022, the company recorded a 4.7 percent year-on-year (yoy) increase in operational revenue, contributing to a USD 17 million increase in revenue. One of the contributing factors was the higher selling price of steam and electricity, referring to the US Producer Price Index (PPI) and Consumer Price Index (CPI). Additionally, the increase in profit was supported by the significant reduction of operational costs as a result of the company’s efficiency program. From the other revenue side, PGE also recorded carbon credit sales as a new revenue generator.
As part of PGE’s efforts to increase its installed capacity by 600 MW in 2027, the company is currently constructing the Lumut Balai Unit 2 Geothermal Power Plant with a capacity of 55 MW, which is expected to operate commercially by the end of 2024. Additionally, PGE has completed the Front End Engineering Design (FEED) for the Fluid Collection and Reinjection System (FCRS) facility. This phase is part of the project to develop the Hulu Lais Unit 1 and 2 Geothermal Power Plants with a total installed capacity of 2 x 55 MW, which is expected to operate commercially in 2026.
Moving forward, the company will focus on optimizing its existing geothermal assets. One way to do this is by increasing production capacity through co-generation technology, utilizing the available hot water (brine) to generate electricity. Co-generation technology has already been implemented at the Lahendong Geothermal Power Plant, utilizing the residual brine from steam production to generate 700 KW of power.
From an ESG perspective, in 2022, PGE achieved an ESG Rating 2 from Sustainable Fitch. This rating indicates that PGE is in the good performance category in terms of ESG management. The ESG initiatives carried out by PGE in 2022 include several programs, such as co-generation technology (brine to power) utilization in the Lahendong area, emission reduction and carbon credit sales, biodiversity programs, occupational health and safety management, corporate social responsibility (CSR), enterprise risk management (ERM), cyber security, and the implementation of an anti-bribery management system (SMAP).
The Urgency of Increasing Competence in Achieving Success in Investing in the Capital Market
TELEGRAF – GI BEI Institut Asia Malang Presents: “The Urgency of Increasing Competence in Achieving Success in Investing in the Capital Market” with Dr. Titis Sosro Tri Raharjo, M.M., CRP, CIB,CSA, CSC, CES, RFC, CRMP, CPIA, C.Me, CPRM as Guest Lecturer
Join us on Tuesday, March 28th, 2023 from 09.00 AM to 12.00 PM WIB at R. Theater Lt.1 Kampus Pusat Institut Asia Malang for a special guest lecture on the importance of improving competence in achieving investment success in the stock market. The lecture will be presented by Dr. (Cand.) Titis Sosro Tri Raharjo, M.M., CRP, CIB,CSA, CSC, CES, RFC, CRMP, CPIA, C.Me, CPRM, who is the Treasurer General of PROPAMI.
The purpose of this guest lecture is to provide participants with better knowledge and understanding of the stock market, which is a form of investment that can provide significant returns but also comes with high risks. Therefore, investors need to have sufficient competence in making investment decisions and choosing the right investment instruments.
Through this guest lecture, participants will gain a better understanding of the stock market and how to achieve success within it. The lecture will cover various effective and efficient investment techniques and strategies, allowing participants to have a deeper understanding of the stock market.
In addition, participants will have the opportunity to directly ask questions to the speaker, Dr. (Cand.) Titis Sosro Tri Raharjo, M.M., CRP, CIB,CSA, CSC, CES, RFC, CRMP, CPIA, C.Me, CPRM, who has extensive experience and knowledge in the field of stock market investment. This will enable participants to deepen their understanding of investment in the stock market.
This guest lecture is suitable for anyone who wants to improve their knowledge and competence in investing in the stock market. Don’t miss this opportunity to learn from an expert in the field of stock market investment. Register now to join the guest lecture on “Urgensi Peningkatan Kompetensi Dalam Meraih Sukses Berinvestasi di Pasar Modal” by GI BEI Institut Asia Malang on March 28th, 2023.
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