Decarbonizing Indonesia through Biogas

Indonesia aims to reduce GHG emissions by 31.89% unconditionally and 43.2% with international help, targeting net zero by 2060. The project focuses on promoting Compressed Biomethane Gas (CBG) to decarbonize sectors like transport and industry. Challenges include financial, regulatory, and market barriers, such as lack of collateral and inconsistent regulations. The project introduces a Biogas Guarantee Facility (BGF) offering concessional loans and guarantees to developers, aiming to cover 70% of initial costs with favorable terms. It supports integrating CBG into the national gas grid, reducing reliance on traditional energy subsidies, and enhancing regulatory frameworks. This effort is expected to mobilize significant public and private investment, projecting a reduction of up to 58.8 million tons of CO2 in a decade, significantly contributing to Indonesia’s clean energy transition and its climate targets.