India and Japan have recently entered into a partnership to advance clean energy development, as part of the Asia Energy Transition Initiative (AETI). Launched by Japan in 2021, AETI is aimed at helping countries achieve net-zero emissions. The initiative initially targeted Association of South East Asian Nations (ASEAN) countries, providing them with a whopping financial aid of USD 10 billion for renewable energy projects.
About the Asia Energy Transition Initiative (AETI)
The AETI is an effort by Japan to assist countries in Asia transition to cleaner forms of energy as part of their pledge to achieve net zero emissions. The initiative provides financial assistance and other resources to ASEAN nations, allowing them to invest in renewable energy sources that can help reduce their carbon footprints and protect the environment.
Milestone Moments in India-Japan Clean Energy Cooperation
March 2022 marked the launch of a clean energy partnership between India and Japan, building on the agenda set by the India-Japan Energy Dialogue back in 2007. This partnership is expected to expand over time, covering areas of mutual benefit. In the same year, both nations took up leadership roles in key international groups, with India presiding over the G20 and Japan leading the G7. During their G20 presidency, India emphasized the importance of the Lifestyle for Environment (LiFE) strategy in relation to environmental sustainability.
Meanwhile, Japan rolled out its Feed-in Premium (FiP) scheme in April 2022 to spur the country’s energy transition. It also pledged to become a net-zero economy by 2050 and later unveiled an interim report on its Clean Energy Strategy in May 2022. In contrast, India has set the ambitious goal of achieving net-zero emissions by 2070.
The Role of Green Hydrogen in the Energy Landscape
As India and Japan continue to strive towards their respective net-zero goals, the production of green hydrogen could play a pivotal role. The Indian subcontinent’s vast renewable energy resources have the potential to boost green hydrogen production, which could fuel a green hydrogen economy. The surplus hydropower potential in countries such as Nepal and Bhutan could be harnessed using green hydrogen electrolyzers.
Understanding Clean Energy Transition
Simply put, clean energy transition refers to the shift from traditional, fossil fuel-based energy sources like coal, oil, and natural gas, to cleaner, more environmentally friendly energy options. This transition is necessitated by the urgent need to reduce greenhouse gas emissions, curb the effects of climate change, and address other environmental and public health concerns related to fossil fuel usage. Clean energy sources include renewable energy sources such as solar, wind, hydro, geothermal, and biomass energy, as well as energy storage technologies such as batteries and hydrogen fuel cells.
India-Japan Bilateral Relations: An Overview
The defense and security partnership between India and Japan has progressively evolved over the years. This includes bilateral and multilateral exercises such as Dharma Guardian and Malabar, with Japan even participating for the first time in the MILAN exercise.
In healthcare, both nations are working together to identify projects that align with India’s AYUSHMAN Bharat Programme and Japan’s AHWIN, aiming to improve overall public health.
Japan’s Official Development Assistance (ODA) Loan program, which has benefitted India more than any other country for decades, exemplifies their robust investment and development collaboration. With Delhi Metro and the Western Dedicated Freight Corridor (DFC) project epitomizing Japanese cooperation through ODA, the relations between the two Asian giants only appear to strengthen further.
