During his three-year tenure as Japan’s prime minister, Fumio Kishida’s created the Asia Zero Emission Community (AZEC) to, in his words, “help Asia decarbonise together”.
But a year and a half after AZEC was formally launched, a new report by the international research organization Zero Carbon Analytics shows that one-third of agreements between Japan and AZEC member countries promote or prolong fossil fuels.
Of the 158 projects financed by Japan under this initiative, 56 include fossil fuel technologies such as natural gas, co-firing ammonia with fossil fuel in power plants, hydrogen produced with fossil fuels, carbon capture and storage (CCS), and e-fuels.
A report by Zero Carbon Analytics shows the projects signed under the AZEC initiative leave renewable energy on the sidelines and favour technologies that promote or prolong fossil fuels. (Photo: Zero Carbon Analytics)
The alleged climate benefits of these technologies are hotly disputed. While some studies have claimed gas is a less polluting fossil fuel than the coal used for electricity in much of Southeast Asia, a study published last week suggested that it can actually be more polluting, especially when it is imported across the sea in a liquid form called LNG.
Ammonia co-firing involves burning ammonia alongside coal in coal-fired power plants. While this reduces the amount of coal burned, critics note that the plants still burn mostly coal and that the co-firing can encourage governments to allow the coal-fired power plant to keep operating longer. Similarly, carbon capture and storage technology captures just some of a power plant’s emissions and can encourage the authorities to keep the plant open longer.
Ammonia, hydrogen and e-fuels are all fuels which can be made in more polluting ways using fossil fuels or cleaner ways with renewable electricity.
Louisiana communities are suffering from Japan-funded LNG exports
AZEC was launched in 2023 to advance climate cooperation in Asia, with Japan playing a central role. Kishida likened it to an Asian version of the European Coal and Steel Community – a predecessor to the European Union. Members include most countries in Southeast Asia and Australia.
But Japan’s fossil fuel investments – particularly gas projects – through AZEC are inconsistent with its pledge to stop overseas financing for unabated fossil fuels, experts told Climate Home News.
At their 2022 meeting in Berlin, G7 leaders all agreed to “end new direct public support for the international unabated fossil fuel energy sector by the end of 2022, except in limited circumstances clearly defined by each country that are consistent with a 1.5 °C warming limit and the goals of the Paris Agreement”.
Report author Amy Kong said: “Relying on these technologies is a slower and more expensive path to decarbonisation for the region, and risks derailing national power sector emissions targets set out in the International Energy Agency’s 2050 net zero scenario.”
Shigeru Ishiba, Japan’s recently appointed prime minister, has suggested the country will prioritise regional cooperation and has argued in favour of renewable energy. However, there is still little information on the future of AZEC under his new government.
Zero emissions community
Japan’s goal with the AZEC initiative was to invest public funds from its climate transition bonds to “create a huge new decarbonisation market in Asia”, former PM Kishida said during the community’s launch.
Through AZEC, member countries could apply for Japanese funding for energy projects. More than 150 projects have been approved between the Japanese government or government-backed institutions and their AZEC counterparts, the Zero Carbon Analytics report shows.
Initial investments were administered via a host of Japan’s government-backed institutions, including the environment and the trade ministries. Many of Japan’s private-sector firms have also partnered with these public entities.
But according to Zero Carbon Analytics’ analysis, over one-third of those MOUs will promote fossil fuels or technologies that will prolong the use of fossil fuels. This threatens to lock-in coal and gas investments that may be difficult to reverse, the report says.
On the other hand, 54 MOUs signed under AZEC include renewables and electrification technologies, about a third of the total. These include solar PV power, wind, hydroelectric, geothermal, battery storage, electric vehicles, green hydrogen and ammonia, and waste management. But of these 54 agreements, only 11 include wind and solar.
UAE’s ALTÉRRA invests in fund backing fossil gas despite “climate solutions” pledge
‘False solutions’
Non-governmental organizations across Asia have raised concerns that AZEC primarily promotes fossil-based technologies.
Ayumi Fukakusa, deputy executive director of Friends of the Earth Japan, told Climate Home that technologies like CCS, ammonia and biomass co-firing and LNG “only delay climate actions and prolong the life of fossil fuel infrastructure”. She added that “AZEC will further lock-in Asian partners in massive emissions and doesn’t support real decarbonization”.
Hanna Hakko, Japan-based senior associate of the E3G think tank argued that Japan’s AZEC initiative would “serve the region far better by enabling the growth of renewable energy”, which would make the country more energy independent and contribute to long-term emissions reductions.
Wicaksono Gitawan is an Energy Transition Associate and Project Manager at Indonesian nonprofit CERAH. He called AZEC a form of “green colonialism.”
Japan’s push for ammonia co-firing has also been criticized by other governments, most prominently by Canadian, UK, and German ministers during the 2023 G7 meeting.
‘Green colonialism’
Japan signed by far the most deals with the region’s most populous nation Indonesia, followed by Thailand and Malaysia. Historically, Japan has been the top source of infrastructure investment in Southeast Asia and spearheaded the creation of an Asian LNG market in the 1960s.
Japan’s government-backed financial institutions, such as the Japan Bank for International Cooperation, invested $93 billion in overseas oil and gas projects between 2013 and 2023. About $42 billion of that was in fossil fuels projects in Asiawhile just $9 billion was spent on clean energy over the same period.
Campaigners say the long-term financial benefits of AZEC are questionable. Fukakusa from Friends of Earth Japan said “most of the support made by the Japanese government in the past, especially for energy projects, are through loans,” which risk adding pressure on already debt-burdened economies in Southeast Asia.
According to a Wood Mackenzie analysis, the cost of electricity from utility-scale solar PV in Asia declined significantly over the last few years, while the costs of coal and gas generation increased. In 2023, renewables were 13% cheaper than conventional coal in Asia and are expected to be 32% cheaper by 2030.
(Reporting by Walter James, editing by Sebastian Rodriguez and Joe Lo)
The post Japan backs fossil fuels in Southeast Asian “zero emission” initiative appeared first on Climate Home News.
Japan backs fossil fuels in Southeast Asian “zero emission” initiative
Climate Change
Big fishing nations secure last-minute seat to write rules on deep sea conservation
As a treaty to protect the High Seas entered into force this month with backing from more than 80 countries, major fishing nations China, Japan and Brazil secured a last-minute seat at the table to negotiate the procedural rules, funding and other key issues ahead of the treaty’s first COP.
The Biodiversity Beyond National Jurisdiction (BBNJ) pact – known as the High Seas Treaty – was agreed in 2023. It is seen as key to achieving a global goal to protect at least 30% of the planet’s ecosystems by 2030, as it lays the legal foundation for creating international marine protected areas (MPAs) in the deep ocean. The high seas encompass two-thirds of the world’s ocean.
Last September, the treaty reached the key threshold of 60 national ratifications needed for it to enter into force – a number that has kept growing and currently stands at 83. In total, 145 countries have signed the pact, which indicates their intention to ratify it. The treaty formally took effect on January 17.
“In a world of accelerating crises – climate change, biodiversity loss and pollution – the agreement fills a critical governance gap to secure a resilient and productive ocean for all,” UN Secretary-General António Guterres said in a statement.
Julio Cordano, Chile’s director of environment, climate change and oceans, said the treaty is “one of the most important victories of our time”. He added that the Nazca and Salas y Gómez ridge – off the coast of South America in the Pacific – could be one of the first intact biodiversity hotspots to gain protection.
Scientists have warned the ocean is losing its capacity to act as a carbon sink, as emissions and global temperatures rise. Currently, the ocean traps around 90% of the excess planetary heat building up from global warming. Marine protected areas could become a tool to restore “blue carbon sinks”, by boosting carbon absorption in the seafloor and protecting carbon-trapping organisms such as microalgae.
Last-minute ratifications
Countries that have ratified the BBNJ will now be bound by some of its rules, including a key provision requiring countries to carry out environmental impact assessments (EIA) for activities that could have an impact on the deep ocean’s biodiversity, such as fisheries.
Activities that affect the ocean floor, such as deep-sea mining, will still fall under the jurisdiction of the International Seabed Authority (ISA).
Nations are still negotiating the rules of the BBNJ’s other provisions, including creating new MPAs and sharing genetic resources from biodiversity in the deep ocean. They will meet in one last negotiating session in late March, ahead of the treaty’s first COP (conference of the parties) set to take place in late 2026 or early 2027.
China and Japan – which are major fishing nations that operate in deep waters – ratified the BBNJ in December 2025, just as the treaty was about to enter into force. Other top fishing nations on the high seas like South Korea and Spain had already ratified the BBNJ last year.
Power play: Can a defensive Europe stick with decarbonisation in Davos?
Tom Pickerell, ocean programme director at the World Resources Institute (WRI), said that while the last-minute ratifications from China, Japan and Brazil were not required for the treaty’s entry into force, they were about high-seas players ensuring they have a “seat at the table”.
“As major fishing nations and geopolitical powers, these countries recognise that upcoming BBNJ COP negotiations will shape rules affecting critical commercial sectors – from shipping and fisheries to biotechnology – and influence how governments engage with the treaty going forward,” Pickerell told Climate Home News.
Some major Western countries – including the US, Canada, Germany and the UK – have yet to ratify the treaty and unless they do, they will be left out of drafting its procedural rules. A group of 18 environmental groups urged the UK government to ratify it quickly, saying it would be a “failure of leadership” to miss the BBNJ’s first COP.
Finalising the rules
Countries will meet from March 23 to April 2 for the treaty’s last “preparatory commission” (PrepCom) session in New York, which is set to draft a proposal for the treaty’s procedural rules, among them on funding processes and where the secretariat will be hosted – with current offers coming from China in the city of Xiamen, Chile’s Valparaiso and Brussels in Belgium.
Janine Felson, a diplomat from Belize and co-chair of the “PrepCom”, told journalists in an online briefing “we’re now at a critical stage” because, with the treaty having entered into force, the preparatory commission is “pretty much a definitive moment for the agreement”.
Felson said countries will meet to “tidy up those rules that are necessary for the conference of the parties to convene” and for states to begin implementation. The first COP will adopt the rules of engagement.
She noted there are “some contentious issues” on whether the BBNJ should follow the structure of other international treaties such as the Convention on Biological Diversity (CBD), as well as differing opinions on how prescriptive its procedures should be.
“While there is this tension on how far can we be held to precedent, there is also recognition that this BBNJ agreement has quite a bit to contribute in enhancing global ocean governance,” she added.
The post Big fishing nations secure last-minute seat to write rules on deep sea conservation appeared first on Climate Home News.
Big fishing nations secure last-minute seat to write rules on deep sea conservation
Climate Change
Climate at Davos: Energy security in the geopolitical driving seat
The annual World Economic Forum got underway on Tuesday in the Swiss ski resort of Davos, providing a snowy stage for government and business leaders to opine on international affairs. With attention focused on the latest crisis – a potential US-European trade war over Greenland – climate change has slid down the agenda.
Despite this, a number of panels are addressing issues like electric vehicles, energy security and climate science. Keep up with top takeaways from those discussions and other climate news from Davos in our bulletin, which we’ll update throughout the day.
From oil to electrons – energy security enters a new era
Energy crises spurred by geopolitical tensions are nothing new – remember the 1970s oil shock spurred by the embargo Arab producers slapped on countries that had supported Israel during the Yom Kippur War, leading to rocketing inflation and huge economic pain.
But, a Davos panel on energy security heard, the situation has since changed. Oil now accounts for less than 30% of the world’s energy supply, down from more than 50% in 1973. This shift, combined with a supply glut, means oil is taking more of a back seat, according to International Energy Agency boss Fatih Birol.
Instead, in an “age of electricity” driven by transport and technology, energy diplomacy is more focused on key elements of that supply chain, in the form of critical minerals, natural gas and the security buffer renewables can provide. That requires new thinking, Birol added.
“Energy and geopolitics were always interwoven but I have never ever seen that the energy security risks are so multiplied,” he said. “Energy security, in my view, should be elevated to the level of national security today.”
In this context, he noted how many countries are now seeking to generate their own energy as far as possible, including from nuclear and renewables, and when doing energy deals, they are considering not only costs but also whether they can rely on partners in the long-term.
In the case of Europe – which saw energy prices jump after sanctions on Russian gas imports in the wake of Moscow’s invasion of Ukraine – energy security rooted in homegrown supply is a top priority, European Commission President Ursula von der Leyen said in Davos on Tuesday.
Outlining the bloc’s “affordable energy action plan” in a keynote speech at the World Economic Forum, she emphasised that Europe is “massively investing in our energy security and independence” with interconnectors and grids based on domestically produced sources of power.
The EU, she said, is trying to promote nuclear and renewables as much as possible “to bring down prices and cut dependencies; to put an end to price volatility, manipulation and supply shocks,” calling for a faster transition to clean energy.
“Because homegrown, reliable, resilient and cheaper energy will drive our economic growth and deliver for Europeans and secure our independence,” she added.
Comment – Power play: Can a defensive Europe stick with decarbonisation in Davos?
AES boss calls for “more technical talk” on supply chains
Earlier, the energy security panel tackled the risks related to supply chains for clean energy and electrification, which are being partly fuelled by rising demand from data centres and electric vehicles.
The minerals and metals that are required for batteries, cables and other components are largely under the control of China, which has invested massively in extracting and processing those materials both at home and overseas. Efforts to boost energy security by breaking dependence on China will continue shaping diplomacy now and in the future, the experts noted.
Copper – a key raw material for the energy transition – is set for a 70% increase in demand over the next 25 years, said Mike Henry, CEO of mining giant BHP, with remaining deposits now harder to exploit. Prices are on an upward trend, and this offers opportunities for Latin America, a region rich in the metal, he added.
At ‘Davos of mining’, Saudi Arabia shapes new narrative on minerals
Andrés Gluski, CEO of AES – which describes itself as “the largest US-based global power company”, generating and selling all kinds of energy to companies – said there is a lack of discussion about supply chains compared with ideological positioning on energy sources.
Instead he called for “more technical talk” about boosting battery storage to smooth out electricity supply and using existing infrastructure “smarter”. While new nuclear technologies such as small modular reactors are promising, it will be at least a decade before they can be deployed effectively, he noted.
In the meantime, with electricity demand rising rapidly, the politicisation of the debate around renewables as an energy source “makes no sense whatsoever”, he added.
The post Climate at Davos: Energy security in the geopolitical driving seat appeared first on Climate Home News.
Climate at Davos: Energy security in the geopolitical driving seat
Climate Change
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