Many commentators have dubbed the 21st century the “Asian Century” due to the rapid growth of the region’s diverse group of nations. As economies and societies develop, countries are increasingly faced with challenges such as pollution reduction, ensuring environmental conservation, and pursuing a sustainable path for continued growth. These challenges also bring new opportunities for Asian countries to effectively decarbonize their economies without compromising prosperity, and Japan is leading efforts to achieve this goal.

The diversity and dynamism that have propelled Asia’s growth also means that cross-border cooperation is a must. Nations now face the delicate task of charting low-carbon futures through pathways tailored to each country’s context—pathways such as the Japan-developed Asia Zero Emissions Community (AZEC), a platform for cooperation towards carbon neutrality and net-zero emissions designed to reflect the diversity that characterizes the countries in Asia. One of the key challenges is managing the transition from high-emissions development to green alternatives. Such herculean tasks require not only policy direction but the effective mobilization of capital and the involvement of new and existing private sector players.

With all these elements in play, countries in the region are faced with intricate decisions which will have lasting impacts. Developing nations are exploring practical pathways that support decarbonization goals while increasing economic robustness and resilience. Some are striving to scale up clean technologies while making strategic use of conventional fuels during the transition. While both public and private sector actors are heavily involved in this process both in Japan and wider Asia, it is worth noting the roles of private companies are becoming increasingly important in designing regionally appropriate transitions.