Japan sets sights on clean ASEAN energy market
London (Quantum Commodity Intelligence) - Japan has officially offered $10 billion in funding to the ten-member states of the Southeast Asian Nations (ASEAN) to spur investment in decarbonisation projects, such as renewable energy, carbon capture and storage and LNG, alongside calls for the expansion of multilateral power trading and the development of a common gas market in the region.
The money, which was flagged up a month ago, was offered by Japan's trade and industry ministry (METI) on Monday at a virtual meeting of the ASEAN energy ministers.
The $10 billion will be invested and lent through the Japanese government-affiliated Japan Bank for International Cooperation (JBIC), as well as Japanese banks.
The ten members of ASEAN are reliant on fossil fuel for power generation.
Only three of the countries - Cambodia, Myanmar and Laos - have made a declaration to achieve net-zero greenhouse gas emissions (GHG) by 2050.
Singapore only aims to half its 2030 emissions, when they are forecast to peak, by 2050.
Vietnam has committed to reducing emissions by 9% by 2030, up from 8% under the Paris Agreement of 2015.
Brunei and Thailand both aim to reduce GHGs 20% by 2030 compared to 2005 levels.
Indonesia has committed to a 29% reduction in GHGs by 2030, or 41% with international assistance.
Malaysia has a target of cutting 45% by 2030, with ambitions to be carbon neutral by 2050.
The Philippines has introduced a moratorium on new coal-fired power stations and revised its 2030 target to cut greenhouse gas emissions by 75%.