Japan to Provide US$10 billion in Decarbonisation Support for ASEAN Nations

• 14 June 2021
• Construction Focus
• 2634 Views

Japan is preparing to launch a US$10 billion initiative aimed at helping ASEAN countries reduce greenhouse gas emission, reported Nikkei Asia.

Through this initiative, Japan will help draw a road map and set up a public and private investment and loan facilities, where all funding will be invested and lent through the Japanese government-affiliated Japan Bank for International Cooperation (JBIC), Japanese megabanks, and others.

The program aims to help the 10 ASEAN nations through projects such as energy-saving efforts, the introduction of renewable energy, and a switch from coal to cleaner liquefied natural gas power generation.

Technology such as the mixture of coal with ammonia in power generation plants will also be promoted across Southeast Asia.

In addition, Japan will also help ASEAN nations in adopting technologies such as burying carbon dioxide underground, both through aid on equipment and human resource development.

This US$10 billion initiative comes after Japan vowed to contribute to global decarbonisation and help boost growth in emerging economies such as Southeast Asian nations.

According to the Nikkei Asia report, helping ASEAN switch from heavily fueled power plants to cleaner energy sources will not only help with climate change but also will help change the business environment of the region by attracting more investors who embrace green energy.

Another reason for this program is to counter China. If Japan does not support ASEAN nations with green energy projects, it will create an opportunity for China to supply them with coal-fired power plants and other facilities, which result in stronger Chinese influence over ASEAN’s power infrastructure.

According to research, to date, 80% of ASEAN nations electricity is generated from fossil-fuel power plants. Renewables such as solar power and offshore wind power are limited to parts of Thailand, Vietnam, the Philippines and elsewhere.

• Energy and Environment