The Clean Energy Finance Corporation (CFEC) and the Japan Bank for International Cooperation (JBIC) have signed a memorandum of understanding (MOU) to collaborate on the development of key industries and technologies for clean energy. This partnership aims to expedite the deployment and utilization of clean energy in both Australia and Japan. Under the MOU, the two financial institutions will explore co-investment opportunities, share knowledge and expertise, and support investment in the clean energy transition. The collaboration will focus on the hydrogen, renewable energy, and electricity infrastructure sectors to strengthen cooperation between the parties.
CEFC CEO Ian Learmonth highlighted the challenges Australia faces in meeting its renewable energy targets and stressed the importance of this partnership in the global pursuit of net zero emissions by 2050. He expressed optimism that working with JBIC, a significant investment powerhouse, could accelerate decarbonization efforts worldwide. Learmonth emphasized that while Australia faces significant challenges, it also presents opportunities in achieving its renewable energy goals.
As part of the Rewiring the Nation program, the Australian government has allocated $19 billion to CFEC to upgrade and modernize the country’s electricity grid through transmission infrastructure development.
JBIC’s Resident Executive Officer for Asia and Pacific, Negishi Yasuaki, underscored the crucial role hydrogen will play in achieving carbon neutrality in Japan and globally. He mentioned that Japanese companies are collaborating with Australian companies to develop hydrogen supply chains linking the two countries. Yasuaki also highlighted the introduction of hydrogen-enabling policies by the governments of Australia and Japan to support early adopters.
In addition, the memorandum of understanding aims to promote collaboration between the two governments and accelerate tangible actions between Australia and Japan.
The content also includes recommendations from the Investor Group on Climate Change (IGCC) on achieving a net zero transition in Australia’s industrial regions. The IGCC emphasized the importance of policy solutions to attract investments necessary for the transition into net zero, citing examples from the U.S. and Europe where specific acts and plans have made those markets more attractive for green industry investments compared to Australia. The IGCC recommended policymakers to develop investible and socially supported transition plans for emissions-intensive sectors and regions. It also suggested the establishment of a national Net Zero Authority to enhance coordination among government levels and stakeholders. For investors, the IGCC advised integrating just transition objectives within net zero strategies and engaging with companies to ensure positive outcomes for affected workers and communities.