Japan to coordinate decarbonisation plans with ASEAN, Australia

Japan will coordinate with Southeast Asian countries and Australia on policies that reduce carbon emissions in a region that is particularly reliant on fossil fuels, according to Nikkei Asia.

Cabinet-level officials from the 11-member Asia Zero Emission Community (AZEC) will meet in Indonesia on August 21. Japan is sending Ken Saito, the minister of Economy, Trade and Industry.

Officials are expected to adopt a joint statement addressing three sectors: electricity, transportation and industry. AZEC will work on a 10-year road map, as well as developing guidelines.

In the electricity sector, the statement is expected to focus on decarbonizing thermal power generation. Coal, natural gas and other fossil fuels make up a large percentage of Asia's power mix.

AZEC plans to promote hydrogen and ammonia as fuel, taking into consideration the power situations in each country. Technical trials of hydrogen and ammonia power generation are underway in Japan.

Supporting legislation concerning carbon capture and storage that targets emissions from thermal power plants will also be a part of the electricity policy.

For the transport sector, officials are set to agree on establishing supply chains in Asia geared toward expanding the use of sustainable aviation fuel and biofuels. A road map will be formulated for this initiative. Demonstration projects will be launched, with companies from AZEC members participating.

The industrial component of the agreement will likely feature industrial parks switching to renewable energy for electricity. AZEC members will also cooperate in rolling out energy-saving technology.

In Asian countries, the manufacturing sector accounts for high shares in exports by value. By reducing carbon dioxide emissions in the supply chain as a whole, AZEC members look to strengthen their competitive advantage in an international community where decarbonisation demands are gaining.

AZEC members are also expected to cooperate in sharing knowledge on their respective emissions trading frameworks.

AZEC was first proposed by Japanese Prime Minister Fumio Kishida in 2022. Excluding Myanmar, nine members of the Association of Southeast Asian Nations (ASEAN) have joined the body, together with Japan and Australia. An AZEC leaders' summit is scheduled for October in Laos.