Asia Energy Transition Initiative (AETI)

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About AETI-

• Japan’s AETI, launched in 2021, initially supported the Association of South East Asian Nations (ASEAN) countries towards achieving net zero emissions, including financial assistance of $10 billion for renewable energy.
• It seeks to achieve both sustainable growth and carbon neutrality in Asia, where energy demand will continue to grow, various and pragmatic energy transitions, that reflect different circumstances of each country, and utilise all energy sources and all technologies, are essential. 
• The Government of Japan announced the AETI, which includes a variety of support for realising energy transitions in Asia.
  • Support drawing roadmaps for energy transitions.
  • Asian version of transition finance.
  • US$10 billion finance support (e.g.) renewable energy, energy efficiency, LNG etc. 
  • Technology development and deployment, utilizing the achievement of 2 trillion yen fund (e.g.）Offshore wind power generation, Fuel-ammonia, Hydrogen etc. 
  • Capacity building of decarbonisation technologies, and knowledge sharing through Asia CCUS network.

India- Japan  Clean Energy Partnership-

• In March 2022, India’s external affairs ministry published the specifications of the Clean Energy Partnership between India and Japan.
• This partnership would work on the agenda covered in the India-Japan Energy Dialogue 2007 and will subsequently expand into areas of mutual benefit.
• India has set an ambitious target of achieving net zero by 2070. Japan has initiated a goal of becoming net zero by 2050. 
• The first India-Japan environment week was held in New Delhi from January 12-13, 2023.
• India and Japan have now taken over the presidentship of G20 and G7, respectively and for India, Lifestyle for Environment (LiFE) is one of the most important priorities during the G20 presidency.
• The Quadrilateral Security Dialogue, commonly known as the Quad, between Australia, India, Japan and the United States has also announced the Clean-Hydrogen Partnership for technology development,
• Japan has also raised its renewable energy targets with an aim for 36-38 per cent of renewables in its energy mix by 2030 based on the Strategic Energy Plan released in October 2021.
• Japan is the fifth largest energy consumer globally. The supply of fossil fuels has been at a low for the last seven years. But the country continues to rely heavily on fossil fuels consisting of 84.8 per cent of the total primary energy supply (TPES) in 2020.
• The Feed-in Premium (FiP) scheme by the government of Japan was implemented in April 2022 and is expected to improve the country’s energy transition and complement the existing FiT scheme, which has been in the market since 2012.

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