How will Just Transition be implemented in the context of JETP?
The CIPP has developed a Just Transition (JT) Framework, a set of principles, pillars, and standards to be implemented in JETP projects. The JT framework is designed to incorporate and supplement existing safeguards for energy projects in Indonesia. For example, GoI legally requires that energy projects institute certain safeguards through processes such as the AMDAL (Environmental Impact Analysis) and the Land Acquisition and Resettlement Plan. In addition, lenders (both multilateral development banks (MDBs), development finance institutions (DFIs), and the private sector) to energy projects in Indonesia often voluntarily adopt additional safeguards that go beyond legal requirements from GoI, and these lenders can mandate implementation of these safeguards on projects that they finance. These existing GoI and lender safeguards are adopted as Standards in the JT Framework (Standard 1-8), thus, there will be no duplication of work and cost.
The JT Framework introduces one additional standard that addresses economic diversification & transformation (Standard 9). The JT Framework also introduces one additional component to assessments that focuses on identifying and enhancing social, economic, and environmental opportunities.
Further explanation on the details of the standards, including the assessment and implementation process of the JT Framework can be found in Chapter 9.