Key points:
- ZCA has launched a new interactive dataset with analysis of the deals signed under AZEC – Japan’s flagship decarbonisation initiative for ASEAN – including the latest deals announced in October 2025.
- Analysis shows that approximately 31% of AZEC agreements signed since March 2023 involve fossil fuel technologies.
- In October 2025, Japan signed 49 new MoUs with ASEAN partners. Of these, 15 (30%) involve fossil fuels, while just 11 (22%) involve renewables.
- Biomass/biofuels is the most mentioned technology across all AZEC deals. Four of the top 10 technologies are fossil fuel-related: CCUS (2nd), gas and LNG (5th), ammonia and ammonia co-firing with coal plants (6th), and hydrogen (7th).
- Indonesia leads in the number of AZEC deals signed with Japan, both overall (125 MoUs) and in new deals announced in October 2025 (15 new MoUs). After Indonesia, Thailand ranks second in the number of AZEC deals signed since March 2023 (43 MoUs), and Vietnam and Malaysia are tied for third (36 MoUs each).
- Fossil fuel technologies come with emissions, security and cost risks for ASEAN countries. Investing in them could jeopardise the region’s transition and its clean energy goals.
Fossil fuels are still prevalent in Japan’s flagship decarbonisation initiative for Asia
The Asia Zero Emissions Community (AZEC) is an initiative launched by Japan in March 2023 to achieve the three goals of “decarbonisation, economic growth and energy security.” AZEC was launched with 10 partner countries, including Australia and nine Association of Southeast Asian Nations (ASEAN) countries: Brunei, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand and Viet Nam.
A total of 316 AZEC Memoranda of Understanding (MoUs) have been signed between Japan and ASEAN partners since March 2023, including 49 new MoUs announced at the Third AZEC Leaders Ministerial in October 2025
– Visit the AZEC Tracker website for the interactive dataset and latest analysis
New analysis of the technologies planned in the deals finds that 31% involve fossil fuel technologies, the same proportion that involves renewables and electrification tech. Of the MoUs signed in October 2025, 15 (31%) involve fossil fuel technologies and just 11 (22%) involve renewables and electrification.
Four of the top 10 technologies mentioned across all AZEC deals are fossil fuel-related: CCUS ranks second, gas and LNG rank fifth, ammonia and ammonia co-firing with coal plants rank sixth, and hydrogen ranks seventh. All these technologies pose significant risks for ASEAN countries compared to renewable energy generation, including high costs, feasibility limitations, supply security risks, and increased emissions.
– Visit the AZEC Tracker website for a breakdown of technology risks and policy context
In October, ASEAN energy ministers adopted an action plan to increase the share of renewable electricity to 45% of total capacity across the region within the next five years. Deals signed that support the continuing use of fossil fuels risk jeopardising the region’s transition and its clean energy goals.
