Japan's 1.6 trillion yen aid package for Asian countries involved in crude oil procurement, with the Japanese government taking a leading role in energy security to counter China.

According to The Yomiuri Shimbun, Prime Minister Sanae Haga announced that Japan would provide a total of $10 billion (approximately 1.6 trillion yen) in support to various Asian nations concerned about crude oil supplies due to deteriorating conditions in the Middle East. The initiative aims to lead efforts in strengthening supply chains and other energy security measures, demonstrating Japan's presence. At the same time, it also seeks to counter China’s growing influence in Asia through economic cooperation.

■ Japan will not draw from its reserve oil stocks; instead, it will promote procurement via financial support

Japan will not release its strategic petroleum reserves, thus having no impact on domestic supply and demand. Instead, it will use financial support to help countries procure crude oil, maintain supply chains, and offer collaboration in areas such as reserve system building and securing critical minerals.

The Prime Minister chaired an online meeting on the 15th with leaders from the "Asia Zero Emission Community (AZEC)"—a regional decarbonization cooperation framework involving Southeast Asia—and announced this support. After the meeting, he emphasized to reporters: “We are not just providing oil. Through building resilient supply chains, we aim to help the entire Asia region achieve prosperity and strength.”

The meeting included representatives from 15 countries and three institutions across Asia, all welcoming the support. On the day of the meeting, many Southeast Asian nations—where Theravāda Buddhism is prevalent—were celebrating Lunar New Year. A senior official at the Ministry of Foreign Affairs remarked: “If this were Japan, it would be New Year’s Eve, yet so many countries still participated. This truly reflects their high expectations for Japan.”

■ Advancing a 'Free and Open Indo-Pacific'

The Prime Minister described this support for Asian nations as advancing the realization of the "Free and Open Indo-Pacific" (FOIP). Under the Kōshō administration, FOIP—originally proposed by former Prime Minister Shinzō Abe—has been developed into a core diplomatic policy. It primarily includes enhanced cooperation on economic security, expanding Official Development Assistance (ODA), and enhancing government security capabilities (OSA) to broaden security partnerships. Support measures include using ODA and OSA to build secure maritime transport routes, which aligns with Japan’s national interests.

The FOIP vision was conceived in response to China’s increasing maritime expansion. A government official stated that, seizing the opportunity presented by the energy crisis, the Prime Minister has led the establishment of a new cooperative framework, “which allows Japan to demonstrate proactive leadership in Asia.”

The Prime Minister plans to visit Vietnam and Australia—two participating countries—during the upcoming extended holiday period later this month to discuss specific support measures and further strengthen bilateral relations.

■ Asia Zero Emission Community (AZEC)

An international decarbonization cooperation framework led by Japan in Asia. Besides Japan, 11 countries including the Association of Southeast Asian Nations (ASEAN) and Australia participate. Former Prime Minister Fumio Kishida first proposed the initiative during his policy address in January of Reiwa 4 (2022), and the inaugural summit was held in Tokyo in December of the same year.

Many Asian countries remain heavily dependent on fossil fuels, making rapid decarbonization through renewable energy akin to Europe impractical. AZEC advocates feasible, context-specific measures tailored to each country’s circumstances. Regarding this support, government officials explained: “The ultimate goal of AZEC is decarbonization, but it also aims to promote economic growth and energy security. In the current situation, we are adopting realistic, practical responses.”

Japan supports initiatives such as power generation using hydrogen and ammonia, as well as technologies for carbon dioxide (CO₂) capture and storage. It also considers introducing next-generation “perovskite solar cells” and innovative reactor designs. These efforts are also intended to prevent China—currently dominant in renewable energy equipment—from encircling Asian nations with technological dependency.

Original article: toutiao.com/article/1862770674040972/

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