International decarbonization forum led by Japan faces criticism for advocating allegedly ineffective climate solutions to Indonesia
The Asia Zero Emission Community (AZEC), an initiative launched by Japanese Prime Minister Fumio Kishida in 2020, has been met with opposition and controversy in Indonesia. The community, which aims to provide a platform for government officials and business leaders to advance decarbonisation solutions while promoting economic growth, has been criticised for its potential ties to fossil fuels and lack of transparency.
Indonesian environmental nonprofit WALHI, led by mining and energy campaign manager Fanny Tri Jambore Christanto, opposes AZEC for promoting fossil fuels through its projects and technologies. This criticism stems from concerns that Japan may dispose of its waste from carbon capture technologies in developing countries like Indonesia, as claimed by research group CELIOS.
The controversy surrounding AZEC is not limited to the potential disposal of carbon waste. The Legok Nangka Waste-to-Energy (WTE) Project in West Java, a proposed energy transition project by Indonesia, has been criticised for imposing a high tipping fee on the central and regional governments and using incinerator technology from Japanese company Sumitomo. The plant's operation has resulted in severe environmental contamination, impacting farmers who rely on river flows, leading to failed rice crops due to water pollution.
Environmentalists have raised doubts about the proposed decarbonisation initiatives, claiming that AZEC lacks transparency and does not allow for public participation. This sentiment is shared by WALHI, which claims that the land acquisition process for the geothermal project involved intimidation of affected communities and a lack of transparency and public consultation with local communities.
The Muara Laboh Geothermal Project, another energy transition project proposed by Indonesia, has also faced controversy and protests during various stages of its development. During the AZEC meeting in Jakarta, Japan signed 70 memorandum of understandings (MoU) on energy transition projects with partners, with US$1 billion funded by Japan's Ministry of Economy, Trade and Industry. However, the countries co-financed by Japan to develop carbon capture capacity in the AZEC projects have not been explicitly identified.
Experts have highlighted the risk of debt distress from the implementation of AZEC projects in Indonesia, as the loan-based scheme could further deteriorate the country's fiscal health. Loan-based financing has long been a trend in climate diplomacy, increasing the financial burden on countries like Indonesia.
Japan, the world's fourth-largest economy, is heavily dependent on imported coal, oil, and gas and is the second-largest public financier of international fossil fuel projects. Despite pledging to achieve net-zero emissions by 2050, Japan's decarbonisation efforts rely on costly and largely unproven technologies, such as Carbon Capture and Storage (CCS).
Recent studies have shown that incinerators in the United States, the United Kingdom, and Europe emit more greenhouse gasses than coal-fired power plants. This raises concerns about the impact of AZEC's proposed energy transition projects on Indonesia's environmental health.
Arsjad Rasjid, chairman of the Indonesian Chamber of Commerce and Industry (KADIN), represented Indonesia during the AZEC roundtable and stated that AZEC focuses on inclusivity and multiple climate projects. However, the opposition and controversy surrounding AZEC projects in Indonesia suggest that more transparency and public participation are needed to ensure the initiatives align with Indonesia's environmental and economic interests.
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