May 28, 2021
Mr. Kajiyama Hiroshi, Minister of Economy, Trade and Industry, made a new announcement on the Asia Energy Transition Initiative (AETI) at the ASEAN-Japan Business Week held from May 24 to 28.
During the opening session of the ASEAN-Japan Business Week -toward Innovative and Sustainable Growth- held from May 24 to 28, Minister Kajiyama announced the Asia Energy Transition Initiative (AETI) that aims to simultaneously achieve sustainable economic growth and carbon neutrality in Asia.
- (Reference) ASEAN-Japan Business Week – toward Innovative and Sustainable Growth-
- During May 24-28, a series of webinars on the themes of “Innovation” and “Sustainability” were organized under the joint sponsorship of relevant organizations from ASEAN and Japan, featuring speakers from ASEAN and Japanese companies and experts.
- Each session will be archived from May 29 (Sat) and a summary will be available in early June.
- On Wednesday the 26th, a panel discussion was held on “(1) The importance on Asia Transition Finance” and “(2) Exploring New Business Opportunities in Southeast Asia and the Commitment to Achieve Carbon Neutrality for the Manufacturing Industry”.
Asia Energy Transition Initiative (AETI)
With COP26 (United Nations Climate Change conference) coming up at the end of this year, countries around the world are being asked to further increase and bring forward their greenhouse gas reduction targets. In addition, the international finance industry has been rapidly moving towards divestment, particularly in fossil fuel projects.
On the other hand, there is no “single best solution” for achieving carbon neutrality, as the industrial and social structures and geographical conditions of each country vary.
Particularly in Asia, where the demand for energy is growing, a diverse and realistic energy transition, utilizing all energy sources and technologies, is essential.
(2) Details of the initiative and future policy
In order to support the simultaneous achievement of sustainable economic growth and carbon neutrality in Asia, Japan will present ASEAN countries with a package of concrete support measures based on the following five pillars.
- Support for the development of energy transition roadmaps
- Presentation and promotion of the Asian version of the transition finance
- US$10 billion financial support for renewable energy, energy efficiency, LNG and other projects
- Support for technology development and demonstration using the benefits of the 2 trillion yen fund
- Human resource development on decarbonisation technologies and knowledge sharing through the Asia CCUS network
We will continue to deepen our dialogue with ASEAN countries and extend our views on the need for a realistic transition to the international community, including the rest of Asia, the United States, Canada, Australia, and the Middle East.