Japan, ASEAN, and Australia Agree on Shared Carbon Emission Rules

Japan, ASEAN, and Australia have agreed to shared rules for calculating and reporting greenhouse gas emissions. This move aims to accelerate decarbonization efforts in Southeast Asia while promoting economic growth and energy security.

The leaders emphasized the "triple breakthrough" of addressing climate change, economic growth, and energy security simultaneously. They acknowledged diverse pathways to carbon neutrality, tailored to each country's unique circumstances.

A 10-year action plan was adopted, focusing on creating markets where emission reduction efforts are valued. Understanding emissions across the entire supply chain is crucial. AZEC members will report on their progress in fiscal 2026 and coordinate calculation methods between 2029 and 2034.

Japan is leading in setting regional standards, eyeing competition with China, which has expanded its influence in the region through economic and diplomatic outreach. Japan aims to leverage its ties with Southeast Asia to address the decarbonization challenge.

The plan includes investment in clean technologies, transition finance, and renewable energy projects. Japan will support distribution network development and smart city initiatives in Southeast Asia.

Key Terms:

• Decarbonization: Reducing or eliminating carbon emissions.
• Carbon Neutrality: Achieving a balance between emitting carbon and absorbing carbon from the atmosphere.
• Transition Finance: Financial support for projects that facilitate the shift from fossil fuels to renewable energy.