In late May, Japan’s Ministry of Economy, Trade and Industry announced the creation of the Asia Energy Transition Initiative and a new $10 billion decarbonization fund to promote clean energy, coal transition, and carbon capture. Both efforts are focused on ASEAN countries, where Japan has long been a key trading partner and donor.
In Asia, where energy demands are set to grow, it is essential to seek a diverse and realistic transition “by utilizing all possible energy sources and technologies, while taking into account each country's … geographic characteristics and development phase," said Hiroshi Kajiyama, Japan's minister of economy, trade, and industry, during a press event.
While the initiative is not without its problems, it comes less than a year after the creation of The Asia Energy Transition Partnership, a multistakeholder platform bringing together governments, philanthropies, and partner countries. It follows countries including Vietnam and Indonesia that have expanded renewables and set time limits on coal-fired power generation, the most carbon-intensive electricity source. While shifting the region of more than 650 million away from fossil fuel-driven growth and towards low-carbon development will be a challenge, these new efforts hope to make progress towards that goal.