On the sidelines of the 2nd Asia Zero Emissions Community (AZEC) Ministerial Meeting, Singapore’s Second Minister for Trade and Industry Dr Tan See Leng and Japan's Minister of Economy, Trade and Industry Ken Saito signed a Memorandum of Cooperation (MOC) to cooperate in Carbon Capture and Storage (CCS) on 21 August 2024 in Jakarta, Indonesia. This potentially dovetails very well with Singapore’s November 2024 partnerships with Indonesia on clean energy and sustainability. 1

CCS catches, transports and provides storage for carbon dioxide to prevent release into the atmosphere. It can help decarbonise emissions from industries such as energy and chemicals, power, and waste to achieve global climate mitigation, a role recognized by the Intergovernmental Panel on Climate Change (IPCC) and International Energy Agency in attaining net zero emissions by the 2050s to combat global warming. 2

The MOC dictates that cross-boundary CCS and CCS technological intelligence from both countries be combined by gathering skills and resources from each to quicken the adoption of CCS in Southeast Asia, as explained by Minister Tan: “This MOC signals both Singapore and Japan’s interest to deploy decarbonisation pathways to address climate change. Singapore is keen to work closely with Japan to develop and adopt common standards for CCS, creating a more interoperable market for CCS solutions in the region. Japan is also a leader in CCS technology innovation, and there is much to learn from Japan in terms of research and adoption of CCS technologies. I look forward to taking this partnership forward.” 3

In fact, during his two-day official visit to Indonesia as a component of his policy of ‘introductory visits’ to other Southeast Asian (SEA) countries (in play since May 2024 when he assumed prime ministership), Singapore Prime Minister Lawrence Wong noted: “[Sustainability] can be a new growth engine for both our countries, especially when we realise cross-border energy exports as well as cross-border carbon capture and storage projects in the coming years.” 4

Started by Japan, the AZEC multilateral platform speeds up Asia’s decarbonisation transition in concert with regional partnerships to follow energy transition pathways. 5 Singapore’s energy transition is complementary with the goals of the Paris agreement to decrease carbon emissions, suggest the significance of the shared vision of an ASEAN Power Grid, and to kick off the deployment of low-carbon energies. 6

The AZEC Centre hosted by the Economic Research Institute for ASEAN and East Asia (ERIA) in Jakarta was inaugurated with the AZEC partners to function as an energy-centred research base, and to implement support for AZEC partners in formulating a vision, roadmaps and policies towards national and regional decarbonisation. 7

An Asia Zero Emission Community (AZEC) Ministerial Meeting Joint Statement was released on 21 August 2024 in Jakarta where ASEAN heralded the 28th United Nations Climate Change United Arab Emirates (UAE) Conference (COP28) and committed to hastening the efforts in accordance with the CMA.5 decision on the Global Stocktake (GST). 8 The stakeholders in the joint statement are cognisant of the urgent requirement for “deep, rapid, and sustained reductions in greenhouse gas emissions in line with 1.5℃ pathways”, giving rise to the “AZEC principles” that highlight the significance of reaching a “triple breakthrough” tackling climate change, inclusive economic growth and energy security. 9

The stakeholders also accepted the idea of “one goal, various [practical] pathways” to reach carbon neutrality/net-zero emission, cognisant of every country’s idiosyncratic conditions, existing targets/policies, and developmental challenges (e.g. geographic, economic, technological, institutional, social and equity factors). 10

The stakeholders are also committed to international efforts towards tripling renewable energy capacity globally, doubling the global average yearly rate of energy efficiency improvements, accelerating zero and low-emission technologies and moving away from fossil fuels in energy systems in line with national consensus, with an eye towards the Paris Agreement. 11

A centrepiece in this is the involvement of public-private capital to underwrite the transition to contribute towards the net-zero scenarios, coordinating such policies/projects, development of regional/national decarbonization roadmaps, dialogues to enhance transition finance in Asia at the private-led Asia Transition Finance Study Group (ATF SG), and adherence to the Cleaner Energy Future Initiative for ASEAN (CEFIA). 12

Additional near-future initiatives include: forming a market to value emission reduction; sharing best practices in carbon pricing to push Asian economic growth; handling emissions throughout the supply chain and putting in play high integrity carbon markets through the Joint Crediting Mechanism (JCM), and encouraging renewable, biofuel, Sustainable Aviation Fuel (SAF), hydrogen, ammonia, e-fuels, e-methane, natural gas, and safe, peaceful, civilian nuclear energy sources. 13 All these can be applied to the ASEAN Smart Cities Network (ASCN) to enhance construction and industrial equipment, energy-efficient buildings, the carbon recycling market, sustainable generation of energy from waste, and road transport emission reduction using zero to low-emission cars/automobiles. 14

The ASEAN Business Advisory Council (BAC), Japan Business Federation, and ERIA and will consider recommendations by the AZEC Advocacy Group in the interest of greater public-private partnerships (PPPs) and then publicize these findings to the general public through Singapore International Energy Week, Energy Asia in Malaysia, Indonesia EBTKE ConEx, Indonesia Energy Efficiency and Conservation Conference & Exhibition, Indonesia International Geothermal Convention and Exhibition, and Sustainable Energy Technology Asia in Thailand. 15

Singapore is also already collaborating with Indonesia in the field of energy security, an area that Indonesia prioritizes. 16 Certainly, given Singapore‘s experience in working with them, Japan can tap into Singapore as a conduit to its own cooperation with Indonesia, the largest country in Southeast Asia in the field of energy security.

Through bilateral arrangements like the AZEC/Green Transformation (GX) Promotion Working Team in Vietnam, the AZEC Japan-Indonesia Joint Task Force in Indonesia, the AZEC Japan-Philippines High-Level Coordination Dialogue in the Philippines, and the Working Group on the Cooperation between the Ministry of Energy (MOEN), Japan’s Ministry of Economy, Trade and Industry (METI) to meet Thai Energy Transition objectives, and other projects in cooperation with the Japanese state or businesses, all stakeholders are keen to realize bankable projects while experimenting/observing tangible demonstration projects to encourage energy transition supported by entities like the Global South Future-oriented Co-Creation Project in Japan. 17