Funding and Financial Support Toward Asia Zero Emission Community: A Simulation with E3ME-FTT:Steel

For analyzing decarbonization policy and economic vision toward the Asian Zero-Emission Community, this chapter estimates the effects of Japanese funding and financial support for the iron and steel sectors of ASEAN. For the sake of grasping the situation of ASEAN countries, the economic and environmental policies, technology roadmap, steelmaking technologies, policies and subsidies are summarized. In this chapter, the iron and steel sectors of Indonesian and Malaysia will be analyzed as representatives by simulating E3ME-FTT:Steel model. Two decarbonized scenarios are set up which are in line with the government policies and technology roadmap. In S1, the 3 billion USD financial support decided by the Japanese government will support low-carbon steelmaking technologies of Indonesian and Malaysia. S2 will support more low-carbon steelmaking technologies with more funding. By simulating the E3ME-FTT:Steel model and comparing with the baseline, GDP, technology diffusion, CO2 emission reduction and how much will contribute to achieving Net Zero target will be estimated.