By Gayatri Suroyo  and Fransiska Nangoy

CIREBON, Indonesia- A G7-backed push to close coal power plants in emerging markets is facing further delays after a July deadline passed without a deal on the early closure of an Indonesian power plant that would be the first to shut under the initiative.

The push against coal comes under the Just Energy Transition Partnerships (JETPs) with Indonesia, Senegal, South Africa and Vietnam that call for billions of dollars in investments, grants and loans from G7 members, multilateral banks and private lenders to help them transition to low-carbon economies.

Cutting emissions from coal, the dirtiest fossil fuel, is seen as a crucial element of the JETPs if the world is to stave off the worst impacts of climate change.

But a deal on the early shutdown of coal power plants in South Africa remains elusive amid its struggles with rolling blackouts, and hope for proof of concept has turned to Indonesia’s 660 megawatt Cirebon-1 plant in West Java province, 220 km (140 miles) east of capital Jakarta.

The legal and financial implications of closing Cirebon-1 are a stumbling block though. Jakarta is worried, too, that costs for replacing it with renewable energy could reach $1.3 billion, mostly in subsidies to cover more expensive renewable power generation, according to the finance ministry.  – Reuters