Countries need to balance between environmental and economic objectives, says Japan Bank for International Cooperation chairman.
PETALING JAYA: Malaysia and Japan could explore collaboration in the oil and gas industry to realise clean energy initiatives, said Japan Bank for International Cooperation (JBIC) chairman Tadashi Maeda.
“As Malaysia is a net exporter of oil and gas, and Japan is an importer, as such we have to cooperate (with each other),” he said at the Energy Asia Summit today.
The oil and gas industry, he said, must play a role in the reduction of greenhouse gas by employing technology such as carbon capture, usage and storage (CCUS), and blue hydrogen.
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Maeda, however, warned that achieving carbon neutrality requires multiple approaches, not merely a single “cookie cutter” method.
Speaking to CNBC, the chairman expressed his view that while many countries share the common goal of promoting renewable energy, each country faces a different situation and must find their own method to achieve the objective.
More importantly, Maeda advised that developing countries must balance their environmental aspirations with respective economic concerns and objectives.
“We are now engaging with many countries. They have their own goals of economic growth.
“Therefore we need to specifically address the challenges of these countries in a common manner that makes sense,” he said.
Maeda added that the Just Energy Transition Partnership (JETP) programme focuses too heavily on environmental goals while neglecting countries’ economic and social needs.
JETP is a financing mechanism where wealthier nations fund a coal-dependent developing nation to support the country’s journey to phase out coal, replacing it with clean energy.
It aims to bridge the gap between developed and developing nations in terms of carbon neutrality.
As of March 2023, the group consists of the US, Canada, Denmark, France, Germany, Italy, Norway, the EU, the UK, and Japan.
South Africa, Indonesia and Vietnam are the first three countries to receive funding from the partnership.