Supporting Innovative Mechanisms for Industrial Energy Efficiency Financing in Indonesia with Lessons for Replication in other ASEAN Member States

Indonesia requires urgent action to address its increasing emissions, especially in the rapidly growing industrial energy sector. The market penetration of energy efficient technologies and the ensuing energy savings have been hampered by a range of barriers, including access to finance, regulatory challenges, and a lack of capacity and awareness amongst relevant stakeholders. 

This programme will increase Indonesia’s capacity to drive a low-carbon development pathway with enhanced energy efficiency and conservation performance by addressing these chronic barriers. The programme provides a package of innovative energy efficiency solutions including financial de-risking mechanisms, exploration of new energy service business models, development of a supportive regulatory framework, and technical assistance.