Japan to promote low-carbon technologies in Asia

Asia has become a major source of greenhouse gas (GHG) emissions and carbon dioxide (CO₂) due to rapid economic growth. The regional countries will receive grant from the Japanese Government to promote advanced low-carbon technologies. — Photo freediveuk.com

HA NOI (Biz Hub) — Viet Nam will receive a grant from the Japanese Government's fund to support the adoption of advanced low-carbon technologies, the Asian Development Bank (ADB) announced on June 25.

The Japan Fund for the Joint Crediting Mechanism (JFJCM), worth US$17.65 million, will be for the ADB's developing member countries (DMCs) that have signed the memorandum of understanding for the Joint Crediting Mechanism (JCM) with the Japanese Government.

To date, eight DMCs are eligible, namely Bangladesh, Cambodia, Indonesia, Laos, Maldives, Mongolia, Palau, and Viet Nam. The list of eligible DMCs is expected to expand.

ADB President Takehiko Nakao said the fund will provide finance to reduce the cost of advanced low-carbon technologies, such as those related to waste-to-energy schemes and smart grids, which often have initial high investment costs and long cost-recovery periods

Due to rapid economic growth, the region has become a major source of greenhouse gas (GHG) emissions, with the region's carbon dioxide (CO₂) emissions accounting for 43 per cent of the world's CO₂ emissions in 2010. This share could rise to 50 per cent by 2035.The region's developing countries need considerable investments to make the transition to a low-carbon development path.

Many advanced low-carbon technologies face significant barriers to adopting such technology, such as high upfront costs and a perceived risk that the technology will not perform to expectations. The JFJCM will offer grant financing and technical assistance upfront to address these barriers.

With the establishment of the JFJCM, ADB is the first multilateral development bank to have a trust fund for supporting GHG reduction projects under the JCM, which is a bilateral carbon market mechanism between the Government of Japan and developing countries to promote GHG emissions reduction projects.

The fund is part of the Letter of Intent for Cooperation on Environmental Issues which was signed by Japan's Minister of Environment Nobuteru Ishihara and ADB President Takehiko Nakao on June 25. — VNS