Japan offers $10bn funding for Asean energy transition

Japan has proposed $10bn in government funding for renewable and LNG projects, as part of its initiative to help support energy transition in southeast Asia and achieve global carbon neutrality.

The offer, which was made during a virtual meeting yesterday of Association of Southeast Asian Nations (Asean) energy ministers and Japan's trade and industry ministry (Meti), aims to accelerate decarbonisation in southeast Asian countries where energy demand is expected to continue growing. The proposed finance will spur investment in renewable energy sources and LNG, as well as energy conversation measures, according to Meti.

The meeting also recognised that energy transition strategies should include the expansion of multilateral power trading, development of a common Asean gas market, optimisation of the role of new technologies such as clean coal technology, carbon capture utilisation and storage, hydrogen, battery and energy storage, as well as nuclear energy.

Japan also proposed to help Asean members come up with plans for energy transition toward a carbon neutral society as a part of the Asia Energy Transition Initiative, while supporting development and demonstration of clean energy technology.

By Motoko Hasegawa