Page 7 - AsiaElec Week 25 2021

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Japan offers $10bn to support

Asia’s energy transition

JAPAN THE Japanese government is to offer $10bn in 2060 and 2070.
financial aid to boost decarbonisation across “In particular in Asia, where energy demand
emerging economies in South and Southeast will grow hereafter, it is essential to seek diverse
Asia. and realistic energy transition, by utilising possi-
Japanese Minister of Economy, Trade and ble energy sources and technology, while taking
Industry (METI) Hiroshi Kajiyama told regional into account each country’s peculiarity of differ-
energy ministers it would offer support for ence in geographic characteristics and develop-
renewables, energy saving and retrofitting coal ment phase,” Kajiyama said.
power stations to gas, as well as helping to create In terms of finance, Japan also proposed
national roadmaps towards carbon neutrality. the Asia Energy Transition Finance scheme.
“We propose the Asian Energy Transition Ini- Japan would provide green finance if countries
tiative as a package of Japanese support for realis- declared their desire to pursue carbon neutrality
tic transitions in Asia towards carbon neutrality,” and drew up roadmaps toward this goal,
Kajiyama told a meeting of 10 ASEAN energy Crucially, and controversially, Japan’s $10bn
ministers, Reuters reported. financial support would cover both renewables
“For us in Asia, we should not miss this trend and LNG.
on board and see this an opportunity to seek The METI said that the funding would back
both transition to cleaner society system and the construction of gas-fired power plants and
sustainable growth,” said Kajiyama. associated LNG import terminals in a bid to
The Asia Energy Transition Initiative (AETI) replace coal as a generating fuel.
was welcomed by ASEAN energy ministers as The use of gas as a transition fuel to replace
being key to fostering the energy transition. coal is itself controversial, and support for gas
The members of the ASEAN union are is regarded by many green investors and cam-
Brunei, Cambodia, Indonesia, Laos, Malaysia, paigners as still releasing carbon dioxide into the
Myanmar, the Philippines, Singapore, Thailand atmosphere.
and Vietnam. However, multilateral development banks
The AETI states that Japan will help ASEAN (MDBs), such as the Asian Development Bank
members formulate individual roadmaps for (ADB) and the International Finance Corp.
energy transition toward carbon neutrality. (IFC), have recently ended their support for gas-
The Economic Research Institute for ASEAN based projects, as these still produce emissions.
and East Asia (ERIA) is to develop regional and Private investors have also retreated from gas.™
individual carbon neutrality outlooks for 2050,

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