Decarbonization Effects of Technology Transfer from Japan to the ASEAN Power Sector

The Asia Zero Emission Community (AZEC) framework is currently being established to facilitate decarbonization cooperation between Japan and ASEAN member countries. Within this framework, Japan’s technical assistance is expected to promote the development and deployment of low- and zero-carbon technologies, including hydrogen, ammonia, and CCUS, in both regions. However, meeting each country’s NDC targets by 2030 requires not only breakthrough innovations but also the diffusion of existing low- and zero-carbon technologies. In this chapter, using an input–output model based on GTAP-POWER data, we assess the potential impacts of decarbonization technology transfer from Japan to ASEAN member countries by replacing ASEAN input coefficients and CO2 emission coefficients (CO2 emissions per unit of output value) with those of Japan. We estimate the resulting reduction in CO2 emissions under this coefficient-substitution scenario. The results indicate that transferring decarbonization technologies and practices related to the coal-fired power sector and the natural gas-fired sector—particularly those that reduce emissions intensity—could deliver substantial emission reductions without waiting for new technological breakthroughs. Although technological innovation in these sectors in ASEAN has long been emphasized, our findings suggest that technical support for the adoption of Japan’s existing technologies can also generate relatively large emission reductions.