Evaluation of Environmental Policy in Encouraging Renewable Energy Investment

Abstract

Climate change is a major challenge of the 21st century caused by increasing greenhouse gas emissions due to human activities. An effective solution is to switch from fossil fuels to renewable energy such as solar, wind, water and biomass energy. Renewable energy not only reduces carbon emissions, but also offers many additional benefits, including sustainability and resilience to climate change. As developed countries begin to reduce CO2 emissions through environmentally friendly technologies and energy efficiency, developing countries face a dilemma between economic growth and reducing CO2 emissions. Indonesia has large renewable energy potential, but the level of utilization is still low. To achieve net zero emissions (NZE) by 2060, Indonesia needs to expand the use of renewable energy. Policies such as RAN GRK and RAN API are needed to assess and improve the effectiveness of emissions reduction and climate adaptation efforts. Investments in renewable energy are driven by environmental awareness, political support, technological advances, and the need for energy diversification. However, obstacles remain, including political uncertainty, high start-up costs, and dependence on government subsidies. Although the Indonesian government has taken various steps to attract foreign investment and support renewable energy, regulatory and investor protection challenges still need to be addressed. Stable policies, research and development support, and democratic transparency can increase investment and development of renewable energy in Indonesia.