Finland and Indonesia Forge Renewable Energy Ties

As U.S. officials ponder a 2012 budget that would strengthen clean energy, the governments of Indonesia and Finland this week signed a cooperation agreement marking the beginning of a bilateral program to promote the use of wood-based biomass and agricultural waste as energy sources.

The Energy and Environment Partnership (EEP) is aimed at cutting greenhouse gas emissions and tackling climate change while providing "modern, accessible and reliable" forms of energy for rural households and industrial applications.

Kai Sauer, Finland's ambassador to Indonesia, told members of the media in a post-announcement press conference in the Indonesian capital, Jakarta, that Finland's government has set aside 4 million euros to fund the project between 2011 and 2014. The outlay of cash will be used to finance cleantech feasibility studies, research and development and pilot projects.

Finland, which recently implemented a new 12-year feed-in tariff scheme to promote the production of electricity from wind power, biogas and wood-based fuel, has been stepping up its efforts to pursue green projects and to meet emission targets set by the European Union (the country must increase its share of clean energy to 38% by 2020, a roughly 10% increase over 2008 figures).

For its part, Indonesia, the world’s largest supplier of thermal coal, has made some progress toward cleaner options by providing incentives for renewable energy development and pushing to exploit its vast geothermal energy potential.

Image credit: Sayamindu Dasgupta via Flickr