U.S. President Joe Biden unveiled several large-scale climate investments in Indonesia, focused particularly on tackling the climate crisis and addressing food security.
One of these investments is the $2.5 billion carbon capture agreement between state-owned energy company Pertamina and ExxonMobil (NYSE: XOM).
The agreement between both fossil fuel giants will dive deeper into the development of a regional carbon capture and sequestration (CCS) hub in the country, according to the official statement from the White House.
Its aim is essentially to advance the decarbonization of “key industry sectors”, particularly cement, refining, chemicals and steel, and ensuing economic opportunities for employees in these industries.
The partnership is part of the steps in Indonesia’s strategy to reach net-zero emissions by 2060 or sooner.
Earlier this year, ExxonMobil and Pertamina conducted a joint study that found Pertamina’s oil and gas fields could store 1 billion metric tons of CO2, which is the equivalent of the company’s emissions for the next 16 years.
The announcement of this and other investments in Indonesia was made in the context of President Biden’s visit to Indonesia for the G20 summit that is taking place this week in Bali.
During his meeting with Indonesian President Joko Widodo, Biden spoke of Indonesia as a ‘critical partner’ of the US and spoke on the two countries’ partnerships in other areas, such as COVID-19 protection measures.
Another important agreement reached between Indonesia and the US is the decision to start a $698 million Millennium Challenge Corporation (MCC) compact for the development of sustainable transportation infrastructure.
$649 million of these climate investments are to come from the United States, whereas the remaining $49 million are to be invested by Indonesia.
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