Asia Energy Transition Initiative (AETI) [UPSC Notes]

India is looking forward to joining the Japan-led initiative called the Asia Energy Transition Initiative (AETI) which will give a boost to India’s clean energy transition initiatives. In this context, understand what is Japan’s Asia Energy Transition Initiative and the significance of India joining it, for the IAS exam.

Asia Energy Transition Initiative (AETI)

The initiative was inaugurated by Japan in 2021 and supported by the Association of Southeast Asian Nations (ASEAN).

• There is financial assistance of $10 billion for transition through renewable energy and the aim of the initiative is to support countries to achieve net zero emissions.
• The major objectives of AETI are:
  • Support for formulating energy transition roadmaps. 
  • Presentation and promotion of the concept of Asia Transition Finance. 
  • US$10 billion in financial support for renewable energy, energy efficiency, LNG, CCUS and other projects.
  • Technology development and deployment, utilizing the achievement of the Green Innovation fund, e.g, offshore wind, fuel-ammonia, hydrogen etc. 
  • Human resource development and knowledge sharing.
• India and Japan already have a clean energy partnership which plans to cover various areas such as e-mobility, renewable energy, energy efficiency initiatives, green hydrogen, etc.

What are some clean energy initiatives by India and Japan that can fit into the AETI program?

• In March 2022, India’s External Affairs Ministry announced components of the Clean Energy Partnership between India and Japan.
• The Clean Energy Partnership will work to fulfil the objectives covered in the India-Japan Energy Dialogue 2007 and will also expand cooperation into areas of mutual benefit.
• Both India and Japan have set a target of achieving net zero emissions by 2070 and 2050 respectively.
• Also, India and Japan hold the presidency position of G20 and G7 respectively where Lifestyle for Environment (LiFE) is one of the significant priorities for India during its G20 presidentship.
• The Japanese government aims for a 46 per cent reduction in greenhouse gas emissions by 2030 and also released a report on Clean Energy Strategy in May 2022. 
• The Quadrilateral Security or the Quad also announced the Clean-Hydrogen Partnership which aims to develop technology, production and trade in clean hydrogen. 
• The Indian subcontinent has significant renewable energy potential which can boost green hydrogen (GH2) production and there is an untapped potential for a GH2 economy. For example, the surplus hydropower potential of Nepal and Bhutan can be utilized by green hydrogen electrolysers in India.

The India-Japan Environment Week event will also help to formulate a roadmap to integrate variable renewable energy into the system through multifaceted cooperation.

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