06 FOREIGN NEWS
@ green | MAY-JUNE , 2023
Mitsubishi launches RM4.5b decarbonisation fund
According to Nikkei , Japanese trading companies Mitsubishi Corp ., MUFG Bank , and others will form one of Japan ’ s most significant decarbonisation funds
THE fund will invest US $ 1 billion in startups with promising technology , such as floating offshore wind turbines and sustainable aviation fuel .
The fund will prioritise firms in Europe and the United States pioneering in these fields . Through its global business network , the trading house also intends to enable collaboration between those digital startups and Japanese and other Asian corporations and support decarbonisation initiatives among them .
Mitsubishi will launch the Marunouchi Climate Tech Growth Fund through a management firm established in collaboration with MUFG Bank and the South Korean private equity fund Pavilion Private Equity . Mitsubishi will contribute hundreds of millions of dollars to the fund , and Mitsubishi Heavy Industries and other investors will also be asked to participate .
The fund ’ s size will be increased to US $ 1 billion by April of next year , making it one of Japan ’ s most significant funds run by an operating company . Individual investments are planned to range from US $ 20 million to US $ 100 million per firm , with approximately 20 investments made by April 2029 .
Mitsubishi owns over 90 per cent of the management firm and will lead in investment selection . The fund will prioritise renewable energy , next-generation fuels ,
storage batteries , and other fields . It will primarily invest in startups ’ uncommercialised projects .
According to one estimate , achieving net-zero CO2 emissions by 2050 will necessitate an average annual investment of $ 2 trillion from 2022 to 2025 , rising to US $ 4 trillion yearly from 2026 to 2030 .
Mitsubishi will help startups ’ commercialisation efforts by allowing collaboration with investment firms and investing in floating offshore wind turbines and technology that directly extract carbon dioxide from the air .
By fiscal 2030 , Mitsubishi intends to invest two trillion yen
( US $ 15 billion ) in decarbonisation initiatives . In 2022 , it will invest US $ 100 million in Breakthrough Energy Catalyst , Microsoft co-founder Bill Gates ’ decarbonisation fund .
Several decarbonisation funds have been established around the world . Investment firms linked with the SoftBank Group and Saudi Arabia ’ s state-run oil behemoth Saudi Aramco have invested in Energy Vault . This Swiss business uses “ gravity storage ,” transforming power into potential energy and storing it . The investment more than doubled the Swiss firm ’ s corporate worth , paving the way for it to go public in 2022 . – @ Green
Australia to invest RM6.35b to develop renewable hydrogen industry
THE Australian government stated in its annual budget that it would invest A $ 2 billion ( US $ 1.4 billion ) to grow its renewable hydrogen industry .
The announcement announced a “ Hydrogen Headstart ” programme would provide revenue support for large-scale renewable hydrogen projects through competitive hydrogen production contracts .
The government said the subsidies would bridge the market gap for early projects and put Australia on track for up to a gigawatt of electrolyser capacity by 2030 through two to three flagship projects .
Treasurer Jim Chalmers said Australia has the world ’ s largest pipeline of renewable hydrogen projects and needs it to reach net zero emissions by 2050 .
In his speech , Chalmers said the government is investing the most in Australia ’ s energy transformation .
Prime Minister Anthony Albanese ’ s government budgeted A $ 4 billion for renewable energy initiatives . It stated renewable energy investment now exceeds A $ 40 billion .
The A $ 15 billion National Reconstruction Fund supports the green industry .
The battery and green technology minerals industry received funding in the budget .
Australia exports approximately half of the world ’ s lithium , is the third-largest cobalt exporter , and produces rare earth , copper , graphite , manganese , and other energy transition minerals .
However , China processes those minerals into batteries and magnets for missiles and electric vehicles .
The budget A $ 57.1 million for an Australian critical minerals programme to attract foreign investment . – @ Green
Indonesia targets carbon exchange to reach net zero by 2060
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ACCORDING to the country ’ s financial authority , Indonesia plans to launch a carbon market in the second half of this year to increase renewable energy use and reach net zero emissions by 2060 .
Southeast Asia ’ s largest economy is one of the world ’ s leading carbon emitters , intending to reduce emissions by more than 30 per cent by 2030 .
Only firms operating in Indonesia would be allowed to trade on the exchange , according to Investment Minister Bahlil Lahadalia , and the scheme will be similar to stock
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trading .
The OJK and the environment ministry will oversee the exchange , he added .
According to a copy of the rule , the carbon exchange will use a cap-andtrade system in which emission levels are capped , and businesses can sell allowances .
Indonesia had planned to impose a carbon tax on emissions that carbon credits had not offset ; however , the implementation was postponed due to poor global economic conditions .
In February , the government began the first phase of mandated carbon
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trading for almost 100 coal power plants operated by the state utility Perusahaan Listrik Negara ( PLN ). |
Coal accounts for more than half of Indonesia ’ s electricity generation . – @ Green |