The world is not on track to meet the energy components of the Sustainable Development Goals (SDGs). The IEA`s Sustainable Development Scenario (SDS) describes a major transformation of the global energy system and shows how the world can change course to simultaneously achieve the three major energy-related SDGs. Despite a difficult political environment, there are opportunities for real progress in several areas by 2025. The report looks at seven concrete ways for the Indonesian government to overcome existing barriers and make significant progress in the development of renewable energy by 2025. In order to make progress, changes need to be made to change the functioning of the main institutions and the incentives they receive. But if these changes are made, it is possible for Indonesia to pursue an energy policy that respects energy sovereignty, moves towards energy self-sufficiency and allows energy justice for all. The Paris Agreement also states that climate change goals must be achieved in the context of sustainable development and efforts to eradicate poverty. The sustainable development scenario supports these broader development efforts (unlike most other decarbonization scenarios), including access to energy and cleaner air dimensions. The World Energy Outlook introduced a detailed energy transition scenario in 2009, the 450 scenario at the time.
The scenario was called 450 coins per million (ppm), the CO2 concentration which at the time corresponded to a 50% probability of keeping the average increase in global temperature below 2oC (provided net CO2 emissions were reached in 2100). The SDS requires an increase in total investment of about 25% compared to STEPS by 2050. These additional capital costs are partially offset by lower fuel costs, which mitigated the impact on energy bills paid by consumers. Capital expenditures are clearly being shifted from fossil fuels to renewable and other low-carbon energy sources, as well as to electricity. Eliminating 10 Gt emissions from the energy sector, which would remain in the SDS by 2050, would not amount to a mere extension of the energy system changes described in the SDS. Further changes – particularly those related to technological change, infrastructure constraints, social acceptability, behavioural changes and the replacement of capital stocks – would create challenges that would be very difficult and costly to meet. It is not something that belongs solely to the power of the energy sector.