Finance Spotlight

2pm - 4pm: Powering Energy Security and Transition in Asia - The Role of POWERR and the AZEC Inclusive Transition Finance Catalyst (AITF Catalyst)

Amid rising geopolitical risks and growing energy demand, strengthening preparedness against potential supply disruptions has become an increasingly important challenge for the ASEAN region. In this context, Japan launched “POWERR Asia” in April 2026 to promote both “Emergency Responses” and “Structural Responses” including strengthening oil stockpiling capacity, diversifying energy sources, and improving energy efficiency to enhance the region’s long-term energy security.
At the same time, achieving both economic growth and decarbonization requires pragmatic energy transitions tailored to national circumstances. Expanding transition finance will be essential to support these efforts and mobilize private investment. Under the framework of the “Asia Energy Transition Initiative (AETI)”, Japan has promoted pragmatic energy transitions across Asia. Building on this momentum, the “AZEC Inclusive Transition Finance Catalyst (AITF Catalyst)” was launched at the 4th AZEC Ministerial Meeting in October 2026 to support the development of transition finance projects.

Hosted by Ministry of Economy, Trade and Industry (METI), this session will highlight the latest development under POWERR Asia and AITF Catalyst, and discuss how energy security and transition finance can work importantly to advance pragmatic, resilient, and investable energy transition across Asia.

4.30pm - 5.30pm: Financing the Transition: Blended Finance Pathways for Renewable Energy in Southeast Asia

Southeast Asia is emerging as one of the world’s most important energy growth markets. The region is expected to account for nearly 20% of the increase in global energy demand to 2035, yet it continues to attract only a small share of global energy investment. Meeting this growing demand in a way that is secure, affordable and sustainable will require a significant acceleration in renewable energy investment and a much larger mobilisation of private capital.

At the same time, recent volatility in global energy markets has reinforced the importance of reducing dependence on imported fuels and strengthening domestic sources of energy. Renewable energy, energy efficiency and electrification are therefore increasingly important not only to Southeast Asia’s climate objectives, but also to its broader energy security and economic resilience.

Against this backdrop, the report Developing Blended Finance Pathways to Scale Renewable Energy in Southeast Asia examines how blended finance can help unlock greater private investment in renewable energy across Indonesia, Viet Nam and the Philippines. It focuses on four technology areas namely roof top solar, decentralised renewable energy solutions, battery energy storage systems and offshore wind — each of which faces distinct financing challenges and is at a different stage of market maturity.

The report seeks to identify where blended finance can provide genuine additionality: targeting the risks and financing gaps that prevent otherwise viable projects and technologies from reaching scale, rather than subsidising investments that can already attract commercial capital. In partnership with Convergence and International Energy Agency (IEA), this session will mark the first public unveiling of the report, providing an opportunity to introduce its key findings and recommendations and to discuss their implications with policymakers, development partners and private investors.