To develop a blended finance financing scheme for the Asian Zero Emissions Community (AZEC), MUFG Bank and Nippon Export and Investment Insurance Co., Ltd., have signed a Memorandum of Understanding.
Many of the emerging nations in Asia require financial support and investments to gradually decarbonize their economies in order to achieve sustainable growth.
The Asian Zero Emissions Community programme, which the Japanese government has launched, aims to advance an energy transition through extensive cooperation with Asian nations and is leading the way in decarbonization and economic expansion.
ATFSG was established by major financial institutions in ASEAN nations as part of the Asian Energy Transition Initiative (AETI), an initiative of the Japanese government for identifying and building comprehensive methods to help decarbonization in Asia.
MUFG Bank has spearheaded conversations with financial institutions and governmental organisations to create worldwide standards as a member of the ATFSG’s secretariat.
The goal of this agreement is for NEXI and MUFG Bank to work together to create a blended finance financing scheme in order to address climate change. It also aims to realise an effective energy transition in Asia, as well as to meet other economic and social demands such as eradicating poverty and promoting sustainable economic growth and a reliable energy supply.