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ASEAN to receive $10bn decarbonization support from Japan

ASEAN to receive $10bn decarbonization support from Japan

Agreement on initiative for investment, renewables and conservation expected in June

TOKYO -- Japan is preparing to launch a new initiative aimed at helping the 10-member Association of Southeast Asian Nations cut greenhouse gas emissions and realize a decarbonized society.

Tokyo will take the lead in compiling a road map to decarbonization, set up a public and private investment and loan facility of $10 billion, and encourage development of renewables and stronger energy conservation measures, government sources said.

The move comes as Japan seeks to contribute to global decarbonization efforts while helping maintain growth in emerging economies in Southeast Asia and elsewhere.

Japan's Ministry of Economy, Trade and Industry (METI) is making arrangements to reach an agreement on the new initiative with the ASEAN nations by holding a meeting of Japanese and ASEAN economic and energy ministers in June, the sources said.

Major developed countries -- including Japan, the U.S. and South Korea, as well as those in Europe -- have declared their commitment to achieve net zero greenhouse gas emissions by 2050.

But only three of the 10 ASEAN nations -- Cambodia, Myanmar and Laos -- have so far made such a declaration. Japan will urge each ASEAN member to draw up a road map to carbon neutrality.

The Economic Research Institute for ASEAN and East Asia (ERIA), an international organization based in Jakarta, has analyzed what efforts will be needed in each ASEAN country to achieve net zero emissions as of 2050, 2060, 2070 and 2080.

Based on the analysis, Japan will help each ASEAN country draw up a road map that does not specify when net zero emissions will be achieved.

A total of $10 billion will be invested and lent through the Japanese government-affiliated Japan Bank for International Cooperation (JBIC), Japanese megabanks and others.