Japan announced on Monday that it will contribute $10 billion to decarbonization projects in Asia, including renewable energy, energy conservation, and the conversion of coal-fired power generation to gas-fired power generation to aid in the energy transition.
Hiroshi Kajiyama, Japan’s Minister of Economy, Trade, and Industry, recommended numerous support measures for the area in a virtual conference with ASEAN energy ministers, including assisting each country in setting a realistic path toward carbon neutrality and developing a roadmap to achieve it.
Takeshi Soda, director for International Affairs at the industry ministry, said the financial support, which will include lending and investments from the Japanese public and private sectors, will target projects that will help cut carbon emissions and contribute to each country’s carbon-neutral target.
These projects will involve the construction of gas-fired power plants and LNG receiving terminals, as natural gas is seen as a viable alternative to coal and a critical transition fuel.
The international finance industry has made remarkable progress in divesting from fossil fuel projects. To attain carbon neutrality in ASEAN, a structure for attracting investment and funding for a wide range of projects and technologies that contribute to an energy transition must be established.