Climate Integrate has released a report entitled “What is the Asia Zero Emission Community (AZEC)?”
Based on Japan’s proposal, AZEC was launched in March 2023 as a platform to promote cooperation towards carbon neutrality and net-zero emissions in Asia. Since its inception, four high-level meetings have been held, resulting in joint statements, over 200 memoranda of understanding (MoUs), the establishment of a new research center, and a 10-year action plan.
This report aims to answer the question “What is AZEC?” based on publicly available information, and analyzes the MoUs that have been signed to date under the platform.
Key takeaways:
Below are the main findings of our analysis of 217 MoUs announced to date at AZEC leaders’ and ministerial meetings, from three perspectives: by country, by cooperation area, and by entity.
- By country, all 217 MoUs involve Japanese companies or public agencies, while Indonesian companies or public agencies account for 40% of all MoUs (Figure 3).
- By cooperation area, about 30% are related to fuels (incl. hydrogen and ammonia, biomass and biofuels, liquefied natural gas (LNG), and e-fuel). Hydrogen and ammonia is the largest, within which a notable portion is designated for use in the thermal power sector. MoUs related to renewables or energy efficiency account for less than 10% of all MoUs (Figure 4).
- Among Japanese entities, government organizations accounted for the largest share (43 MoUs), followed by energy companies (35 MoUs). More than 10 MoUs were signed by corporate entities in each of the energy, GHG accounting / carbon credits, construction and infrastructure, general trading, and machine manufacturing sectors.
- Among the participating entities of partner countries, energy companies stand out with 90 MoUs (41%).
Co-authors’ comments
Climate Integrate Program Director Hiroaki Odawara said, “Our analysis suggests that Japan’s primary interest lies in building supply chains for various fuels in AZEC participating countries and exporting Japanese technologies such as hydrogen and ammonia co-firing in the thermal power sector. Projects related to fossil fuels or thermal power require close evaluation regarding their emission reduction impact and cost-effectiveness.”
Researcher Ragini Sarmah said, “To ensure Japan’s meaningful contributions to decarbonization efforts in Asia, Japan should be supporting projects align with 1.5°C goal under the Paris Agreement.”
Executive Director Kimiko Hirata said, “Going forward, it is essential that AZEC expands support for cost-effective technologies in reducing emissions, such as renewables and energy efficiency. Additionally, enhancing transparency is needed through the disclosure of financial support for AZEC and progress updates on supported projects.”
