- Region: The Middle East
February 27, 2014
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed on February 26, a memorandum of understanding (MOU) on cooperation in the environment sector with Abu Dhabi Future Energy Company (Masdar), a company owned by the Government of the Emirate of Abu Dhabi in the United Arab Emirates (UAE). The signing took place in the presence of Prime Minister Shinzo Abe and H. H. General Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of the Emirate of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.
Masdar is a wholly owned subsidiary of Mubadala Development Company, the Abu Dhabi government's economic diversification vehicle. Dedicated to the long-term vision for the future of energy, Masdar is Abu Dhabi's renewable energy company advancing the development, commercialisation and deployment of clean energy technologies and solutions. In January 2010, JBIC contributed equity capital to a fund co-managed by Masdar.*1This fund is mainly investing in climate change mitigation projects. The cooperation in the environment sector under the MOU with Masdar will further deepen and develop cooperative relations between JBIC and this company.
UAE has been a stable supply source of crude oil to Japan over the past three decades. In addition, as it permits the entry of foreign oil companies based on concession agreements, it is a very important country for Japan's resource strategy. When Prime Minister Abe made a visit to UAE in May 2013, Japanese leaders and UAE leaders, including H.H. General Sheikh Mohammed bin Zayed Al Nahyan, issued the Joint Statement on the Strengthening of the Comprehensive Partnership between Japan and the UAE towards Stability and Prosperity ("Joint Statement"). It confirmed comprehensive partnership in broader areas, including political, economic, cultural and human exchange, thereby expanding multilayered partnership between Japan and UAE. The Joint Statement also emphasized the importance of the environment sector, including clean and renewable energy and climate change, in addition to the traditional priority on oil and gas.
The signing of this MOU with Masdar is consistent with the Joint Statement issued by both governments and the company's policy and will contribute to strengthen bilateral relations between Japan and its strategically important resource-endowed country. JBIC will continue to support activities of Japanese companies and the securing of a stable supply of energy resources to Japan by further strengthening relations with Masdar with this MOU.