Understanding the Asia Energy Transition Initiative (AETI)

Launched by Japan in 2021, the Asia Energy Transition Initiative (AETI) has gained the backing of the Association of Southeast Asian Nations (ASEAN). This initiative is poised to bring about a significant shift in the energy sector of the participating countries.

• The initiative comes with a whopping financial backing of $10 billion, aimed at supporting the transition towards renewable energy and assisting countries in achieving net zero emissions.
• AETI has several key objectives at its core:
  • Assisting in the development of energy transition roadmaps.
  • Introducing and promoting the concept of Asia Transition Finance.
  • Providing financial support of up to $10 billion for projects related to renewable energy, energy efficiency, LNG, CCUS, and others.
  • Advancing technology development and deployment, leveraging the achievements of the Green Innovation fund in areas like offshore wind, fuel-ammonia, hydrogen, and more.
  • Developing human resources and facilitating knowledge sharing.
• India and Japan have an existing clean energy partnership that encompasses various sectors such as e-mobility, renewable energy, energy efficiency initiatives, green hydrogen, and more.

How do the clean energy initiatives by India and Japan align with the AETI program?

• In March 2022, the Ministry of External Affairs in India announced several components of the Clean Energy Partnership between India and Japan.
• The Clean Energy Partnership is targeted at achieving the objectives outlined in the India-Japan Energy Dialogue 2007, while also expanding cooperation into mutually beneficial areas.
• Both India and Japan have set ambitious targets to achieve net zero emissions by 2070 and 2050, respectively.
• Moreover, India and Japan are currently presiding over the G20 and G7, respectively, where the Lifestyle for Environment (LiFE) initiative is a significant priority for India during its G20 presidency.
• The Japanese government has set a target to reduce greenhouse gas emissions by 46% by 2030 and released a Clean Energy Strategy report in May 2022.
• The Quadrilateral Security or the Quad has also announced the Clean-Hydrogen Partnership, which is focused on advancing technology, production, and trade in clean hydrogen.
• India has significant potential for renewable energy, which can greatly boost the production of green hydrogen (GH2). This untapped potential could lead to the development of a GH2 economy. For instance, the surplus hydropower potential of countries like Nepal and Bhutan could be harnessed by green hydrogen electrolysers in India.

The India-Japan Environment Week event is also expected to contribute to the development of a roadmap for integrating variable renewable energy into the system through a wide range of cooperation.

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