Japan to Provide $10 Billion Financial Support for Decarbonization Projects in Asia

Japan announced on Monday that it will provide $10 billion financial aid for decarbonization efforts in Asia that would help installation of renewable capacity to more transitional steps like replacing coal with natural gas.

Hiroshi Kajiyama, Japan’s Minister of Economic, Trade and Industry, unveiled the plan during a virtual meeting with other ASEAN energy ministers.

He also mentioned Japan’s intention to cooperate with other ASEAN countries to develop and disseminate various measures in the region.

Kajiyama also mentioned Japan’s proposal to help each member states create a relevant and attainable path towards carbon neutrality.

“We propose the Asian Energy Transition Initiative as a package of Japanese support for realistic transitions in Asia towards carbon neutrality,” Kajiyama said during the meeting.

According to Takeshi Soda, director for international affairs at the industry ministry, Japan’s financial support aims to help projects that will help cut carbon emissions and contribute to the carbon-neutral target of each nation.

A great part of the financial aid came from the support and investments made by entities from Japan’s public and private sectors.

In a statement, Soda said that the projects this financial aid targets will include building gas-fired power stations and liquefied natural gas (LNG) receiving terminals as natural gas is considered an alternative to coal and a key transition fuel.

“There has been a rapid progress in divestment in fossil fuel projects in the international finance industry,” Soda said. “But to achieve carbon neutrality in ASEAN, it is important to create a mechanism to attract investment and financing for a variety of projects and technologies that contribute to an energy transition.

© Fourth Estate® — All Rights Reserved.
This material may not be published, broadcast, rewritten or redistributed.