- Region: Asia
- Energy and Natural Resources
- Environment
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Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) renewed on October 2 a Memorandum of Understanding (MOU) with Petroliam Nasional Berhad (PETRONAS; President and Group CEO: Tengku Muhammad Taufik), the national oil company of Malaysia, to further strengthen the partnership between the two organizations*1.
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PETRONAS is a Malaysian state-owned global energy and solutions partner with presence in over 100 countries. The company has declared its commitment to achieving net zero carbon emissions by 2050 and is continuing to expand its portfolio to offer integrated solutions across conventional and cleaner energy. The renewed MOU aims to reinforce cooperation between JBIC and PETRONAS in areas such as hydrogen and ammonia value chains, renewable energy, Carbon dioxide Capture and Storage (CCS)*2 value chains, and the development of domestic and international power transmission networks. It also seeks to promote collaboration between PETRONAS and Japanese companies both within Malaysia and globally.
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The Government of Malaysia has announced its goal to cut carbon intensity against GDP by 45% by 2030 compared to the 2005 baseline and to achieve net zero emissions by 2050. The National Energy Transition Roadmap (NETR), released in 2023, outlines six energy transition levers to accelerate decarbonization: (1) Energy Efficiency, (2) Renewable Energy, (3) Hydrogen, (4) Bioenergy, (5) Green Mobility, and (6) Carbon Capture, Utilisation and Storage.
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In the Fifth Medium-Term Business Plan, released in June 2024, JBIC has identified contributing toward the integrated realization of carbon neutrality and economic development as a key priority. JBIC supports global efforts toward green transformation (GX) and energy transition initiatives that reflect diverse pathways to carbon neutrality in each country. The renewal of the MOU aligns with JBIC’s strategic objectives under the business plan.
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In January 2022, the Government of Japan proposed the Asia Zero Emission Community (AZEC) initiatives, a framework to support and collaborate for efforts for energy transition by Asian countries by leveraging the technologies and expertise of Japanese companies. Malaysia is a key partner in the AZEC initiatives, and the renewed MOU is also aligned with the policy of the Japanese government as it aims to support these initiatives through collaborative decarbonization efforts between Japan and Malaysia.
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As Japan’s policy-based financial institution, JBIC will continue to strengthen its relationship with Malaysia and PETRONAS through the renewal of the MOU and other initiatives, and promote Japanese companies in creating and expanding business opportunities in the decarbonization sector through financial support.
Note
- *1
JBIC signed an MOU with PETRONAS in September 2022. See Press Release on September 27, 2022
- *2
Carbon dioxide Capture and Storage (CCS) is a technology that separates and captures carbon dioxide that would otherwise become a greenhouse gas and stores it in deep waterbeds or geological formations.