When Bali hosted the G20 summit in late 2022, then Indonesian President Joko Widodo seized his moment to shine on the world stage. At a summit dominated by the war in Ukraine, he committed his country to phasing out coal.
Indonesia’s coal consumption has more than doubled over the past 10 years, and the country now ranks eighth in the world for carbon emissions. So it was significant when Widodo launched the Just Energy Transition Partnership (JETP) – a $20-billion plan to move Indonesia from coal to renewables.
The country’s JETP is backed by a host of wealthy nations – among them the UK, Japan, the European Union (EU) and Canada – plus international banks including HSBC, Citi and Bank of America. The US, originally one of the plan’s main proponents, pulled out this year under the administration of climate-change sceptic Donald Trump. The donors’ main goal is to help Indonesia reach net-zero power by 2050.
When the JETP was announced, Noel Quinn, then chief executive of HSBC, hailed it as “further proof that finance has an important role to play in facilitating the changes needed to achieve net zero”. He said his bank would allocate funds where they are “most needed”.
But The Bureau of Investigative Journalism (TBIJ) and Climate Home News can reveal that HSBC and other global banks appear to have undermined the plan from the start by continuing to fund companies driving the construction of new coal-fired power stations across Indonesia.
In total, HSBC, Standard Chartered, Citigroup, Deutsche Bank and Bank of America – which all joined the JETP – have helped raise almost $2bn for companies involved in coal expansion in Indonesia since the scheme was announced nearly three years ago.
“Ineffective” plan
A year after Indonesia launched its JETP, at the COP28 climate summit in Dubai, every UN member state recommitted to accelerating efforts to phase down coal power, a promise first made at COP26 in Glasgow.
But Indonesia has since continued building coal-fired power stations. Since the JETP was launched, 28 gigawatts (GW) of new coal-fired power capacity has come online, started construction or been announced – more than the output of all the UK’s power stations combined. This expansion has led to an oversupply of electricity, according to Global Energy Monitor, which tracks energy data.
At the Banten Suralaya coal-fired power station in the west of Java, Indonesia’s most populous island, two new units are slated to start operating this year, adding 2GW more power to the grid.
Locals have said the existing plant is so polluting that rainwater runs black with coal dust, and their banana and peanut crops can no longer thrive. According to a complaint filed on behalf of local residents in 2023 to the World Bank Group – one of the project investors – the impact of increasing the power station’s capacity would be “almost unimaginable”.
The new units are being built with backing from KEPCO, South Korea’s publicly owned electricity utility company. As recently as February, HSBC, Bank of America and Citigroup helped raise $400m for KEPCO, despite the banks’ own policies restricting coal financing.
KEPCO said in financial documents that the money raised would not be used for “any efforts and activities pertaining to the construction of new coal-fired generation units”.
But that sort of pledge is largely meaningless if the banks don’t require the company not to engage in such activities, according to Xavier Lerin, a senior research manager at ShareAction, a responsible investment organisation.
“The money raised cannot be distinguished from other financing sources,” he said. “Even if it could, it still supports the company’s financial standing and can free up liquidity elsewhere, indirectly enabling coal expansion.”
In a statement to TBIJ, HSBC said: “We follow a clear set of sustainability risk policies which support our ambition to align the financed emissions in our portfolio to net zero by 2050.” Bank of America and Citigroup did not respond to a request for comment.
Fabby Tumiwa, executive director of the Institute for Essential Services Reform (IESR), an Indonesian think-tank that was part of a JETP technical working group, said that if the same banks funding renewables are also financing fossil fuels, the scheme becomes “ineffective”. “I would like to see them spend their money on renewable energy projects listed in the JETP,” he added. “There’s still limited financing going to renewable energy projects right now.”
Indonesia’s JETP secretariat said banks had so far raised just $60m of the $10bn they promised to the scheme. Paul Butarbutar, head of the secretariat, said he did not blame the banks for that: “JETP is about financing projects, not about giving the money to the government. So, because the projects are not there, then of course the financing from the banks is very limited.”
A glaring omission
In 2022, Widodo’s government banned the construction of new coal-fired power connected to Indonesia’s national grid, but the law continues to allow so-called captive stations – which are off-grid and used directly by industry. In Indonesia, captive coal is booming.
Indonesia had almost 14GW of captive coal-fired power stations, according to a 2023 report by the Asian Development Bank, with a further 20GW planned or under construction.
At the time of Widodo’s ban, Weda Bay Industrial Park, home to the world’s largest nickel mine, was being built on Halmahera island, with its own 4.5GW coal-fired power station. HSBC and other banks were helping to fund the companies operating there.
Through a sustainability-linked bond, HSBC helped raise €500m ($582m) for one of the nickel mining companies in the area, a French firm called Eramet. The terms of the deal mean Eramet pays higher interest rates on the debt if it does not meet certain targets to cut emissions from its overall operations. Crucially, however, the substantial emissions from Weda Bay mining operations are excluded from the calculation.
Eramet said it does not have sole decision-making power in the Weda Bay nickel mine but “strives to promote best environmental practices to its partner”. It said it was important to distinguish between the nickel mine and the wider industrial park, which processes the metal using coal-fired power. Eramet is not a shareholder in the Weda Bay industrial park.
It added that the sustainability-linked bond complies with international standards, which do not require emissions from companies in which it is a minority shareholder to be included.
Nickel Industries, an Australian mining company that also operates at Weda Bay, has a majority stake in two of the new coal-fired units on the site and raised $400m with the help of Bank of America Securities in 2023. At the time of publication, Nickel Industries had not responded to a request for comment.
Bhima Yudhistira, executive director of the Center of Economic and Law Studies, an Indonesia-based think-tank, said banks justify financing captive coal-fired power in the industrial park by insisting that nickel-producing companies have a transition plan for using renewable energy later. “This is a very ridiculous argument because if you build the coal-fired power station and it has a lifetime of 15-20 years, I don’t think they will use renewable energy,” he argued.
He added that funds flowing from foreign banks have a knock-on effect: “This also triggers actions from the domestic banks in Indonesia to finance many of the new coal plants because they are inspired by the double standards of the [international banks].”
Early-closure test case
Around $3bn in JETP financing has been approved in Indonesia since the programme was launched, surviving a change of government in Indonesia and several of the donor countries.
Some analysts say it has encouraged Indonesia’s new president to double down on climate commitments. “Despite the complexity of the situation, the JETP is still promising to accelerate renewable energy deployment,” Tumiwa said.
The proposed early closure of a coal-fired power station in west Java is seen as a test case for the scheme.
Cirebon Electric Power (CEP) agreed to close the 660-megawatt coal-fired power station in 2035, seven years ahead of schedule. In return, the company would receive $325m in loans channelled by the Asian Development Bank. Negotiations to finalise the deal are ongoing – and their outcome could set an important precedent.
Yet, even as CEP was negotiating the closure of Cirebon-1, it was preparing to open a new coal-fired power station, Cirebon-2, on the same site. Yudhistira said that was a missed opportunity as CEP could have been forced to stop building the new power station as part of the negotiations. Cirebon-2 went online in May 2023, with an expected life of at least 25 years.
JETP banks Standard Chartered and Deutsche Bank raised $455m for CEP’s parent company Indika Energy, which campaigners said highlights the contradictions in the programme.
“No one can ignore the potential moral hazard of using public funds to compensate CEP for the proposed early retirement of Cirebon-1, even while private companies are still investing in and lending to the coal sector,” a report from Friends of the Earth and a network of other civil society organisations argued.
Like KEPCO, Indika said the funds would not be used for any coal-related business, although documentation for the deal shows that it will shore up the company’s finances.
Deutsche Bank told us it had not participated in any “direct loan” supporting coal expansion in Indonesia and that it has “excluded direct financing of new coal-fired power plants and coal mines” since 2016. But this policy does not seem to have prevented it helping raise money for Indika.
It said: “We reject any suggestion that our activities breach our policies or undermine Indonesia’s Just Energy Transition Partnership.”
Standard Chartered also said its activities had not undermined the JETP. A spokesperson said: “We do not provide new financial services to support the expansion of coal. The transformation of energy systems in high-growth economies like Indonesia via the JETP is central to achieving this goal and Standard Chartered will continue to support that transition with a view to do so responsibly, transparently, and at scale.”
The other banks declined to comment.
Freeze on captive coal?
Four years since the first JETP for South Africa was announced at COP26 in Glasgow, academics at the University of Sussex concluded after in-depth research that the model has faltered due to conflicting mandates between donor and recipient countries.
Two years after Indonesia’s agreement was struck in Bali, meanwhile, the country’s new president, Prabowo Subianto, outlined a vision for Indonesia to phase out all fossil-fuelled power stations over the next 15 years at the G20 summit in Rio de Janeiro.
The country’s recently published climate plan says the government is “preparing policy on just transition” that would seek to ensure “a decent future for workers affected by the transition”. The document also highlights Indonesia’s ambitions to develop “self-sufficient, competitive and green industry”, including raw materials like nickel.
Yudhistira said it is not yet clear whether phasing out captive coal is part of Indonesia’s energy transition plan. “The least that we hope to get from the JETP is to have a moratorium, to freeze the permits for new captive coal power plants,” he added.
He urged the JETP banks to stop funding companies involved in building new coal facilities in Indonesia. “[They] need to collaborate with domestic banks, ensuring both have the same goals to decarbonise the power sector – including in industrial parks.”
This story was published in partnership with The Bureau of Investigative Journalism (TBIJ)
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Big banks’ lending to coal backers undermines Indonesia’s green plans
Climate Change
New Zealand moves to protect business with law curtailing climate litigation
New Zealand’s parliament has adopted a controversial new law blocking a whole avenue of climate litigation and shutting down its most advanced corporate lawsuit, which has been blamed by the government for shaking business confidence and investment.
The Climate Change Response (Tort Liability) Amendment Bill, expected to take effect in the coming days after it is formally signed by the Governor-General, prevents all current and future civil claims for climate loss or harm under tort law.
Justice minister Paul Goldsmith said last week that the aim was to give businesses “certainty around their climate change obligations”, noting it would not alter the government’s responsibilities under the Climate Change Response Act 2002 nor business obligations under the Emissions Trading Scheme.
“Our response to climate change is best managed by the Government at a national level and not through piece-meal litigation in the courts,” he added in a statement.
Such litigation, he said, “risks developing a new regime that contradicts the framework Parliament has already enacted” to tackle climate change.
Goldsmith singled out a key domestic climate lawsuit brought by Northland iwi leader and activist Mike Smith against six big companies: dairy firms Fonterra and Dairy Holdings, energy firms Genesis Energy and Z Energy, New Zealand Steel and coal mining firm BT Mining. A seventh original defendant, Channel Infrastructure, was dropped after it permanently decommissioned its Marsden Point oil refinery.
Smith argued that these companies had caused him harm under public nuisance and negligence law, as well as a third breach of a duty to cease contributing to climate change that has yet to be tested domestically. He did not seek financial compensation, instead asking for the companies to immediately stop emitting or contributing to net greenhouse gas emissions.
In one of the most advanced corporate climate accountability lawsuits in the world, a trial had been scheduled for April 2027 after the Supreme Court unanimously allowed the case to continue.
Corporate lobbying in the shadows
Smith described the passing of the bill as “deeply concerning”, particularly as it coincided with the Supreme Court hearing another of his climate lawsuits. In that case, Smith v Attorney-General, he argues that the government’s response to climate change and its impacts on Māori communities in particular breaches rights to life and culture.
“That timing raises profound questions about the separation of powers and the rule of law,” said Smith. “Whatever one’s view of the merits of these cases, it is deeply troubling when parliament intervenes to remove a legal pathway while the courts are actively considering fundamental questions about climate responsibility, rights and the crown’s obligations.”
The bill – which says that no person (including the government) can be found liable in tort for emissions-related climate change effects – followed major lobbying efforts by the companies defending themselves in Smith’s lawsuit. They outlined a proposed legal amendment in a briefing note to the government in 2024.
The centre-right government has been fiercely criticised over its lack of transparency in relation to this lobbying activity. The national ombudsman recently found that the Prime Minister’s Office effectively withheld information requested by the Environmental Law Initiative about meetings, discussions and conversations regarding Smith’s case.
Green groups fail to stop bill
The bill sparked huge concern among environmental campaigners in New Zealand and elsewhere. Greenpeace Aotearoa called it a “shocking abuse of executive power” and the vast majority of submissions to a parliamentary inquiry said it should be rejected.
But in the end, it was adopted with little resistance, moving relatively smoothly through parliament, passing its third reading by 67 votes to 53. Sam Bookman, climate law lecturer at Melbourne Law School, told Climate Home News he was not surprised by this, given that the coalition government has a secure majority.
A complaint has been made to the UN special rapporteur on climate change and human rights by Smith, the National Iwi Chairs Forum Pou Tikanga and youth coalition Climate Clinic Aotearoa over what they see as the government’s heavy-handed approach. Smith is also challenging the new law in yet another lawsuit.
“Pathetic”: New Zealand plans to barely cut emissions between 2030 and 2035
Bookman thinks it “very unlikely” that such a challenge will succeed, noting that New Zealand’s constitution is firmly anchored in parliamentary sovereignty.
But the expert in climate law does not see the bill as the end of legal action in the country, noting that New Zealand has a “sophisticated climate litigation landscape with a growing number of specialist and experienced lawyers and NGOs”.
The country is also approaching its next general election in November, and some opposition parties have pledged to restore access to the courts if elected.
Amanda Larsson, global project lead on agriculture for Greenpeace International, said: “This law deserves to be tested, and I strongly encourage the international climate litigation community to unite and help defend New Zealanders’ fundamental right to hold polluters accountable before this becomes a global blueprint.”
Copycat legislation on the rise
New Zealand’s move is part of a small but growing legislative effort to shut down climate litigation around the world.
In the US, Republican politicians introduced legislation in the House and Senate in April that would shield fossil fuel firms from climate liability lawsuits. Similar laws have already been passed at state level in Tennessee, Utah, Iowa and Louisiana.
The German state of Bavaria has put forward a similar proposal to the Federal Council, aiming to block private climate claims as well as the recognition and enforcement of foreign judgments imposing such liability. There are also proposals to limit available remedies and actions in the Netherlands and Belgium.
UN General Assembly backs “climate obligations” set by world’s top court
Bookman said he expects more efforts to counter climate damages litigation and advised plaintiffs to think about how to respond, including drawing on broader support in opposing them.
“Even though it’s very hard for plaintiffs to win these types of cases, companies are very eager to avoid the expense, embarrassment and political accountability that come even with unsuccessful lawsuits,” he said.
The post New Zealand moves to protect business with law curtailing climate litigation appeared first on Climate Home News.
New Zealand moves to protect business with law curtailing climate litigation
Climate Change
Indonesia’s nickel production cuts are not enough to create a sustainable industry
Bhima Yudhistira Adhinegara is the Executive Director of the Center of Economic and Law Studies (CELIOS), an Indonesia-based economic think tank. Muhammad Zulfikar Rakhmat is the Director of the China-Indonesia desk at CELIOS.
Indonesia produces around 60% of the world’s nickel, a metal used to manufacture batteries for electric vehicles (EVs) – more than any other country in the world. But in 2026, the government sharply reduced how much of its nickel can be extracted from the ground.
Production quotas were reduced by around 40% this year compared to 2025. Weda Bay, the largest nickel mine on Earth, had its allowance cut by more than 70% and exhausted its full-year quota by the end of May, halting mining entirely; it cannot resume large-scale extraction until next year unless regulators grant an extension.
The policy has sparked a vivid debate in Indonesian policy circles: how can the country shift its strategy from a decade of mining vast quantities of cheap nickel to producing a high-value and low-carbon material that the rest of the world wants for EV batteries.
The cuts aren’t a silver bullet to clean up Indonesia’s nickel industry, whose smelters are powered by coal – the most polluting fossil fuels. But alongside stricter enforcement of environmental rules, it is one side of efforts to produce more sustainable nickel for a premium.
Restricting Indonesia’s nickel output
Production quotas were introduced to stop the collapse of nickel prices because of oversupply in the market. Prices had fallen more than 40% in 2023 alone and kept sliding as Indonesian supply kept growing, hitting a four-year low of around $13,900 a ton in late 2025.
Critics called the recent tightening of production quotas proof that Indonesia’s nickel strategy has failed, arguing that the industry shouldn’t need to throttle its own output to survive. But when assessed against what the policy was supposed to do – push up nickel prices – it has worked. Prices jumped to $20,000 a ton in May, the highest since 2024.
Chinese industry groups representing companies that have invested billions to mine and refine the country’s nickel were furious, warning Indonesia’s president Prabowo Subianto that the cuts put $50 billion worth of investment at risk. But much of that Chinese capital is sunk into smelters and processing plants built specifically to run on Indonesian ore, and cannot simply be moved elsewhere. That gives Jakarta more room to hold its ground than the warning suggests.
Stronger environmental enforcement
Since the start of the year, Indonesia’s forestry task force has seized more than four million hectares of land from mines and plantations operating illegally in protected forests, collecting over two trillion rupiah ($113 million) in fines.
This included 148 hectares seized from Weda Bay for lacking a forestry permit. The share of nickel produced from illegal small-scale mining also fell from about a quarter in 2022 to roughly 10% by 2024.
The crackdown responds to serious environmental damages in the nickel industry. On Obi Island, a waste pond collapsed after heavy rain in June 2025, flooding three villages and killing a resident. Internal company tests found chromium-6 – a carcinogen – in the water, in quantities far above the legal limit. The footprint of another mine near Raja Ampat, which is home to some of the world’s richest coral reefs, grew 60-fold in just eight years.

The market is responding to early cleanup efforts. Low-carbon nickel now sells for a real premium, roughly $18,800 to $19,300 a ton compared with $17,900 to $18,300 otherwise, as carmakers seek to source cleaner materials to comply with the European Union’s new emissions rules for imports.
In turn, this is incentivising the industry to do more to green its operations. Vale Indonesia’s smelter in South Sulawesi now runs almost entirely on hydropower, for example.
None of this addresses coal use, however. Major Indonesian nickel producers still emitted an estimated 15 million metric tons of greenhouse gases in 2023. Indonesia may be cracking down on illegal mining and rewarding cleaner producers but it is still running its mines on the dirtiest fuel available.
Unequal benefits
For Indonesia to truly benefit from producing cleaner and high-value nickel, it needs to reap the economic benefits too. Although the industry has boosted the country’s economic growth, the reality on the ground tells a different story.
Konawe in Southeast Sulawesi is home to a major smelting complex. Growth in the district jumped from 6% to 22% between 2015 and 2023, driven almost entirely by the nickel industry, according to a study by the Lowy Institute study. At the same time, poverty levels increased slightly and unemployment remained unchanged.
In Halmahera, another epicentre of the nickel industry, spending by the poorest fifth grew just 5% between 2019 and 2022, compared with 28% for the wealthiest fifth, according to a separate study.
Part of the reason for this inequality is the system for transferring mining royalties to district authorities where the mines are located. In theory, they are entitled to the largest share. But in practice, payments are delayed, companies routinely dispute what they owe and royalties are pooled and distributed across a larger area.
The Natural Resource Governance Institute has found that decentralisation handed local governments power to approve new mines faster than they could build their capacity to manage them. Higher output raises national income on paper, but local governments remain constrained by fiscal rules and infrastructure costs that scale with mining.
None of this makes the 2026 quota cuts a mistake. Indonesia has every right to defend its pricing power over a resource it controls. But limiting extraction isn’t going to fix underlying issues around environmental enforcement and revenue-sharing. That requires rules that are consistently enforced, royalties that reach communities living by the mines, and a plan to wean smelters off coal.
The post Indonesia’s nickel production cuts are not enough to create a sustainable industry appeared first on Climate Home News.
Indonesia’s nickel production cuts are not enough to create a sustainable industry
Climate Change
Risk of “catastrophic” oil spill reaching Kimberley coast found in Woodside’s Scott Reef gas drilling plans
SYDNEY, Monday 24 August 2026 – New analysis of Woodside modelling released by Greenpeace Australia Pacific and Environs Kimberley has revealed the oil and gas corporation’s plans to drill at Scott Reef could cause an oil spill up to 30 times bigger than the 2009 Montara disaster, impacting the Kimberley coastline and reaching as far as Indonesia.
The new analysis details the “catastrophic” oil spill risk put to environmental regulators for approval by Woodside in its Browse to North West Shelf Project (Browse) plans, the worst-case scenario being a blowout directly below Scott Reef, polluting whale migratory pathways and covering isolated turtle nesting ground with oil condensate.
An FOI application (F348) revealed the federal environment department (DCCEEW) asked offshore oil and gas regulator NOPSEMA to look into the oil spill risk in 2025. NOPSEMA’s response to the application refused access to its report, and one document shows DCCEEW sought further advice this year.
Greenpeace and Environs Kimberley are calling on the Federal Government to publicly release the NOPSEMA report given the risk of an uncontrolled release of oil condensate from directly below Scott Reef.
Hannah Schuch, Senior Campaigner at Greenpeace Australia Pacific, said: “Woodside is aware that drilling at Scott Reef risks a massive oil spill that would have severe, far-reaching consequences. It appears environmental regulators are aware too.
“The state and federal governments need to take this risk from Woodside’s drilling plans seriously, as they could end up allowing the worst oil spill in Australian history.
“The pygmy blue whales that migrate up and down the WA coast with their newborns each year could be swimming and feeding in toxic, oil-slicked water. Woodside’s proposal to drill at Scott Reef is an environmental disaster waiting to happen, and the WA and federal governments have one surefire way to prevent catastrophe — reject Browse.”
Martin Prichard, Executive Director at Environs Kimberley, said: “A catastrophic oil spill by Woodside would be disastrous not just for marine life in the area but also for the Kimberley’s $500 million tourism industry.
“The state and federal governments will see five marine parks on the Kimberley coast included in the risk area of a catastrophic Woodside oil spill.
“The Montara oil spill was disastrous for West Timor with the toxic oil destroying seaweed farmers’ livelihoods. The Kimberley dodged a bullet with Montara, we were lucky the spill didn’t head our way. Myself and a crew flew over the Montara oil spill and followed it as far as we could. It was like a scene from a disaster movie.”
After the WA Environmental Protection Authority deemed Browse “unacceptable” due, in part, to oil spill risk, Woodside submitted a mitigation plan based on technology that has never been used “in anger”, a weakness stated in an independent expert review of the plan.
Professor Richard Steiner, independent oil spill expert, said: “A large offshore spill is impossible to effectively contain or recover. Historically, only 2-6% of total spill volume is recovered and the ecological injury from the release of toxic hydrocarbons in the sea can be severe, extensive, and long-term.
“Here in Alaska, government research concludes that several marine populations injured by the 1989 Exxon Valdez oil spill, including whales, fish, and seabirds, are still not recovering today, 37 years later. We should expect similar long-term ecological impacts in Western Australia if there were to be a major oil spill. The only sure way to avoid the risk of a catastrophic marine oil spill is to not develop oil and gas projects in marine environments.”
-ENDS-
Media contact
Emma Sangalli on emma.sangalli@greenpeace.org or 0431 513 465
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