As an integral part of the inaugural dialogue on the Asia Zero Emission Community (AZEC) underpinned by the Japanese and Philippine governments, the Japan Bank for International Cooperation (JBIC) has signed a preliminary deal with three Philippine conglomerates for the development of projects leaning on clean and green technologies.

The memorandum of understanding (MOU) was inked by JBIC with Aboitiz Power Corporation, San Miguel Corporation and Metro Pacific Investment Corporation – and it is intended for the rollout of projects aligned with the AZEC Japan-Philippines Project Development Platform.

JBIC, in particular, has been extending green finance as well as green bonds to projects that are decarbonization-geared and initiatives that are thriving along the pathway of sustainability.

There are no specific projects identified yet by the relevant parties – but all three Filipino-led companies have been pursuing clean technology ventures – primarily for renewable energy installations as well as liquefied natural gas (LNG) facilities.

For a number of Philippine companies, the Japan Crediting Mechanism (JCM) which is part of the AZEC platform, is also a financing scheme that has been aiding them in advancing their green energy projects.

The Philippines is one of the 11 countries which pioneered last year’s establishment of the AZEC, a regional platform rooted on the overarching goal of comprehensively reducing carbon emissions within Asia; and that has to be carried out while member-countries address the energy demand growth of their respective economies.

At this stage, the Department of Energy (DOE) stated that “the Philippines will closely work with Japan to contribute to decarbonization in Asia through policy harmonization and support, together with other AZEC partner countries.”

In the initiatory dialogue spearheaded by Energy Secretary Raphael P.M. Lotilla and Tadashi Maeda, Special Advisor to the Cabinet / JBIC Managing Director, Chairman of the Board of Directors, both governments pushed for greater collaboration that will enable public and private sector players of the partner-countries “to discuss the challenges and solutions to advance efforts for decarbonization by developing specific projects and encouraging all parties with appropriate assistance.”

In the energy transition play that is now reigning across markets globally, capital formation is primarily centered on RE projects; then LNG since that is touted as the ‘transition fuel’ that will provide warranted degree of flexibility in managing the variability of solar and wind technologies.

Beyond that, energy markets in Asia are likewise catching up with technological innovations as well as on the development of infrastructure facilities that are strategically linked to lowering greenhouse gas (GHG) emissions.