Asia Zero Emission Community(AZEC)Ministry of Economy, Trade and Economy (METI)
March 20231

The importance of the decarbonization of Asia
⚫ Accelerating energy transition toward decarbonization through in the Asian region,
where a substantial portion of global energy demand exists, is a key to achieve goals ofthe Paris Agreement.

⚫ Energy transition in the Asian region requires various and practical pathways that aretailored to meet the energy market structure, industrial structure, and economic andsocial conditions of each country in Asia, especially because of the rapid increase inenergy demand due to the economic growth and the wide diversity of the above
circumstances.
NDCs and CN Commitments ofSE Asian Countries

GDP and Population
Growth Forecasts
GDP Growth Population Growth
2020→2050

S.E Asia
WorldNorthAmerica
EU

3.8%
3.0%
2.1%
1.5%

Source：IEA World Energy Outlook2021,

2020→2050

0.6%
0.8%
0.5%
▲0.2%

Country

NDC Submission

Emission Reduction Target

CN

Energy originated
CO2(2018)

ThailandApril, 2021

20% reduction compared to BAU by 2030
*25% reduction with international support

2065

240 Mt (0.7%)2050 for CO2

IndonesiaJuly, 2021

29% reduction compared to BAU by 2030
*41% reduction with international support

2060

540Mt (1.6%)

Malaysia

November, 2016

45% reduction of GHG economic intensity in 2030
compared to 2005 level

2050

230Mt (0.7%)

Brunei

December, 2020

20% reduction compared to BAU by 2030

-7Mt (0.02%)

Singapore

March, 2020

Peaking out GHG emission by 2030 with less than
65 million tons of CO2e emission
36% reduction of GHG economic intensity in 2030
compared to 2005 level

Later inthiscentury

50Mt (0.1%)

Lao PDR

May, 2021

60% reduction compared to BAU or reducing 62
million tons of CO2 equivalent by 2030

2050

20Mt (0.05%)

Cambodia

December, 2020

41.7% reduction compared to BAU by 2030

2050

10Mt (0.03%)

Vietnam

September, 2020

9% reduction compared to BAU by 2030
*27% reduction with international support

2050

230Mt (0.7%)

The
PhilippinesApril, 2021

Peaking out GHG emission by 2030
75% reduction compared to BAU-130Mt (0.4%)

Myanmar

September, 2017

No nation wide target (specific actions are listed)

2050

30Mt (0.1%)

22Importance of approaching energy transition reflecting
the actual situation of each country⚫ While the goal of CN is the same, the pathways should be various and realistic in
accordance with the different situation of each country.
⚫ Given the difference in various conditions, Asia should have different approaches
from Europe. An approach to pursue a balance among the 3Es (environment,economy, and energy security), may well fit into the Asian context.
⚫ It is important to aim for carbon neutrality while ensuring economic growth andenergy security.

Situation in Europe

Situation in Asia

・Declining energy demand・Rich in renewables (especially wind)・Wide and well-connected grid networks
covering the continent・Pipeline supplied gas has been sufficiently
available

・Rapidly growing energy demand・Uneven distribution of renewable potential (Windpotential is generally weak, flat areas are mostly
populated.）
・Small grid size in archipelagoes, even incontinental areas. Weak in inter grid connections.
・Limited availability in pipeline gas and shifting to LNG⇒Promoting energy transition focusing
on renewables such as wind/solar.

⇒ Because no single source can secure 3Es,
various approaches should be considered.

Asian countries should form “one team” to aim for carbon neutrality.
3Prime Minister Fumio Kishida’s Speech on the Concept ofAsia Zero Emissions Community
Policy Speech by PM to the 208th Session of the Diet, Jan. 17, 2022 (Excerption)⚫ One more important point is that Japan will make use of its technologies, systems andknow-how in hydrogen and ammonia and other areas to contribute to thedecarbonization of the world, especially Asia, and lead the world in technical standards
and international infrastructure development, together with the countries of Asia.
⚫ We aim to join forces with like-minded countries in Asia in creating something that can becalled the “Asia Zero Emissions Community.”

Speech by PM at “Davos Agenda”, Jan. 18, 2022 (Excerption)⚫ I am also aware that many Asian countries have energy
structures that are similar to Japan. Just as the European
Union started as the European Coal and Steel Community
during the Cold War, Japan envisions an “Asia Zero EmissionsCommunity” in Asia where both geopolitical and geo-economic
challenges are intensifying. This community would becomea platform to advance efforts such as international joint investment on
development of zero-emission technologies and hydrogen infrastructure, joint
financing, standardization of related technologies, and establishment of an Asianemissions trading market.
4Asia Zero Emission Community (AZEC)⚫ "Asia Zero Emission Community (AZEC)" concept aims for energy transitions
tailored to each country's circumstances, together with Asian countries thatare actively trying toward carbon neutrality while having similar challenges toJapan in decarbonization.
⚫ AZEC is a platform consisting of Asian countries that are promoting
decarbonization. By making maximum use of Japan's resources and experience,by providing "generous support" in terms of technology, finance, andhuman resources through AETI, JCM, etc., and by policy coordination withpartner countries, AZEC aims to expand new technologies and reduce costs
through market.
Examples of support

Examples of policy coordination- Financial support by JBIC, NEXI,JICA, etc.
- Assistance in developing roadmap
and long-term strategy for CN- Establishment and dissemination of Asia
Transition Finance- Development, demonstration, anddeployment of decarbonization
technologies such as renewable energy,energy saving, hydrogen, ammonia,biomass, and CCUS

- Sharing the policy of maximum
renewable energy introduction- Establish standards for energy
conservation, energy management, andother decarbonization technologies- Share the direction of utilization of bioenergy, hydrogen, ammonia, etc. in thefield of thermal power generation.
- Consideration of effective utilization ofpower grids
5

AZEC Ministerial Meeting⚫ On 4 March 2023, METI hosted Asia Zero Emissions Community (AZEC)Ministerial Meeting.
⚫ Minister Nishimura, Minister of Economy, Trade and Industry of Japan, whochaired the meeting, made remarks on the importance of decarbonization inAsia, AZEC concept, and Japan's specific efforts.

Participating countries (in alphabetical order)
Australia, Brunei, Cambodia, Indonesia, Japan, Laos, Malaysia, Philippines, Singapore, Thailand, Viet Nam
Participating international organizations (in alphabetical order)
Economic Research Institute for ASEAN and East Asia (ERIA)
International Energy Agency (IEA)
6

（Reference）Participants for AZEC Ministerial Meeting
Australia：Hon Jenny McAllister, Assistant Minister for Climate Change and Energy
Brunei：Mr. Haji Shahbudin Haji Musa, Ambassador Extraordinary and Plenipotentiary
Cambodia：H.E. Dr. Ty Norin, Secretary of State, Ministry of Mines and Energy
Indonesia：H.E. Mr. Arifin Tasrif, Minister of Energy and Mineral Resources
Japan：H.E. Mr. Yasutoshi Nishimura, Minister of Economy, Trade and Industry
H.E. Mr. Akihiro Nishimura, Minister of Environment
Laos：H.E. Mr. Sinava Souphanouvong, Vice Minister of Energy and Mines
Malaysia：Y.B. Tuan Mohd Rafizi bin Ramli, Minister of Economy
Philippines：H.E. Mr. Raphael Perpetuo M. Lotilla, Secretary, Department of Energy
Singapore：H.E. Mr. Gan Kim Yong, Minister for Trade and Industry
Thailand：H.E. Mr. Supattanapong Punmeechaow,
Deputy Prime Minister and Minister of Energy
Viet Nam：H.E. Dr. Tran Hong Ha,
Deputy Prime Minister and Minister of Natural Resources and Environment
ERIA：Professor Hidetoshi Nishimura, The President of ERIAIEA：Ms. Mary WARLICK, the Deputy Executive Director

7

AZEC Ministerial Meeting (Joint Statement and Chair’s Summary)⚫ The participants launched AZEC as a platform and agreed toAZEC joint statement including the three following common views:1) Advancing cooperation towards carbon neutrality/net-zero emissions
while ensuring energy security
2) Promoting energy transition while achieving economic growth3) Recognizing there are various and practical pathways toward carbon
neutrality/net-zero emissions depending on the circumstances of eachcountry⚫ After the ministerial meeting, Minister Nishimura issued ”Chair's Summary”
that reflects the comments and opinions expressed in the ministerial meeting
under his responsibility, as for following areas.
1) Energy efficiency and demand-side energy conversion
2) Renewable Energy/Energy Management
3) Natural gas and LNG
4) CCUS/Carbon Recycling5) Hydrogen and Ammonia6) Critical Minerals

8AZEC Public-Private Investment Forum⚫ On 3 March 2023, the Asian Zero Emissions Community (AZEC) Public-PrivateInvestment Forum was co-hosted with KEIDANREN(Japan Business Federation).
Approximately 700 participants, both local and online, attended.
⚫ Special presentations about respective efforts toward decarbonization and expectations
for cooperation with Japan were made by ministers and CEOs of SOEs in Asia and others.
⚫ In addition, Japanese companies introduced the strengths of their various
decarbonization technologies, including renewable energy, biomass, hydrogen, ammonia,and CCS, and their initiatives to accelerate energy transitions in Asia.

⚫ Japanese government related organizations explained that they are ready to provide allkinds of support measures, including financial support and knowledge sharing, forrealistic energy transitions.

Philippines,Secretary,
Department ofEnergy, H.E. Lotilla

Australia, AssistantMinister for Climate
Change and Energy,
Hon. Jenny McAllister
Pertamina, President
Director and CEO,Ms. Nicke Widyawati

MOU between NEXI and PLN on cooperation to decarbonize
the power sector(From left: Minister of Economy, Trade and IndustryNishimura, NEXI President Kuroda, PLN President Daruwaman,9and Minister of Energy and Mines Arifin)

(Reference) The Program of AZEC Public Private Investment Forum
ProgramSpeaker

Opening Remarks

Vice Chair, KEIDANREN(Japan Business Federation), and Chairman & Representative Director, Asahi Kasei
Corp., Mr. KOBORI Hideki

Speeches/Presentations on-Envisioned pathways for
decarbonization-Technology needs toenable smooth energy
transition

Indonesia, Minister of Energy and Mineral Resources, H.E. Arifin Tasrif
Philippines, Secretary, Department of Energy, H.E. Raphael Perpetuo M. Lotilla
Australia, Assistant Minister for Climate Change and Energy, Hon. Jenny McAllister
ERIA, The President of ERIA, Professor NISHIMURA Hidetoshi
PLN, President Director and CEO, Mr. Darmawan Prasodjo
Pertamina, President Director and CEO, Ms. Nicke Widyawati
Petronas, President and Group Chief Executive Officer, YM Datuk Tengku Muhammad Taufik
PVN, Vice President, Mr. Le Ngoc Son
JERA, Mr. ONODA Satoshi,Erex, Mr. HONNA Hitoshi
IHI, Mr. IDE Hiroshi
Shizen Energy, Mr. ISONO Ken
Sumitomo Corporation, Mr. HYODO Masayuki
Kawasaki Heavy Industries, Mr. HARADA Eiichi
Mitsubishi Heavy Industries, Mr. HASHI Toshiyuki
MUFG Bank, Mr. NAKAHAMA Fumitaka
Tokyo Gas, Mr. KASUTANI Toshihide

Presentations ontechnologies and projects
for decarbonization

Presentations on
support measures

Ministry of the Environment, Mr. ONO Hiroshi
JBIC (Japan Bank for International Cooperation), Mr. HAYASHI Nobumitsu
JOGMEC (Japan Organization for Metals and Energy Security), Mr. HOSONO Tetsuhiro
NEDO (New Energy and Industrial Technology Development Organization), Mr. ISHIZUKA Hiroaki
NEXI (Nippon Export and Investment Insurance), Mr. KURODA Atsuo
JETRO (Japan External Trade Organization), Mr. NOBUTANI Kazushige
JICA(Japan International Cooperation Agency), Mr. NAKAZAWA Keiichiro
The Institute of Energy Economics, Japan, Mr. TERAZAWA Tatsuya

Closing remarks

Minister of Economy, Trade and Industry, Mr. NISHIMURA Yasutoshi

10

AZEC Public-Private Investment Forum⚫ In conjunction with the Forum, a total of 28 new MOUs were announced forcooperation in a wide range of decarbonization areas, including renewable energy,
biomass, hydrogen, ammonia, CCUS and LNG.
<Examples of MOU>

News Release
Japanesehttps://www.meti.go.jp/press/2022/03/20230306005/20230306005.html
Englishhttps://www.meti.go.jp/english/press/2023/0306_002.html
MOU ListJapanese
https://www.meti.go.jp/press/2022/03/20230306005/20230306005-31.pdf
Englishhttps://www.meti.go.jp/english/press/2023/pdf/0306_002a.pdf

11Schedule
Member Countries: Australia, Brunei, Cambodia, Indonesia, Lao PDR, Malaysia,
the Philippines, Singapore, Thailand and Vietnam.

March 2023＠Tokyo
Ministerial Meeting
Public-Private Investment Forum
April 2023@Sapporo
G7 Energy and Climate Ministerial Meeting
May 2023
G7 Summit in Hiroshima
September 2023
ASEAN-Japan Summit in Indonesia
December 2023
ASEAN-Japan Special Summit in Japan12

Bilateral Cooperation between Japan and Thailand⚫ On 12 and 13 January 2023, the Ministry of Economy, Trade and Industry(METI) and the Ministry of Energy (MOE) of the Kingdom of Thailand held the5th Japan-Thailand Energy Policy Dialogue.

⚫ At the policy dialogue, they exchanged opinions on energy policies of bothcountries and held a joint signing ceremony for 4 MOUs on specificcollaborations toward carbon neutrality between companies from Japan andThailand.
<4MOUs signed in this occasion>(1) EGCO / JERA Asia “EGCO/JERA Decarbonization for Thailand”(2) EGCO / Banpu Power / BLCP / JERA / Mitsubishi Corp. / MHI“MEMORANDUM OF UNDERSTANDING for Collaboration toMaterialize the Feasibility Study for Ammonia Co-Firing at theexisting BLCP Power Plants”(3) BLCP / Chiyoda Corp. / Mitsubishi Corp.
“The MOU for CCUS at Coal-Fired Power Plant among BLCP・Mitsubishi・Chiyoda”(4) SCG Cement Co., Ltd. /The Siam Cement (Kaeng Khoi) Co., Ltd.
/Nippon Steel Engineering Co., Ltd./Thai Nippon Steel Engineering &Construction Co., Ltd.
“Feasibility Study of Social Implementation of Carbon Captureand Utilization from Flue Gas of Cement Production Plant inThailand and Neighboring Countries in Southeast Asia”

13MOE is strongly interested in CCUS cooperation.

14

METI and MOE signed MOC on CCUS cooperation.
Paragraph II

MEMORANDUM OF COOPERATIONon
THE CARBON CAPTURE, UTILIZATION AND STORAGETECHNOLOGY PARTNERSHIP
Between

AREAS OF COOPERATIONCooperation activities determined as potential collaboration projects between theParticipants under this MOC may be performed in the following forms:(1) Bilateral consultation;(2) Exchange of information and statistical data available in open sources on aregular basis;(3) Training, skill development and transfer of expertise;(4) Promoting joint investment between the two countries and/or in a third country;(5) Operating and disseminating the joint projects; and(6) Any other forms of cooperation to be determined by the Participants.

THE MINISTRY OF ENERGYParagraph III
OF THE KINGDOM OF THAILAND

andTHE MINISTRY OF ECONOMY, TRADE AND INDUSTRY
OF JAPANIMPLEMENTATION
To coordinate the cooperation under this MOC, the Participants will discuss andcooperate under the Japan – Thailand Energy Policy Dialogue (hereinafter referredto as “JTEPD”) in order to identify the CCS (Carbon Capture and Storage) andCCUS (Carbon Capture, Utilization and Storage)
joint projects forimplementation.
Participants may establish a Working Group which may explore CCS, CCUS andrelated cooperation with the participation of key partners including Japanesecompanies which can be supported by the Japan Organization for Metals andEnergy Security (JOGMEC) and Thai companies and/or organizations which areaffirmed by the Department of Mineral and Fuels (DMF) and report its progress toJTEPD as necessary.

15Thank you for listening