Japan said on Wednesday it will establish a financial framework worth about $10 billion to support Asian countries in securing energy resources, as rising geopolitical tensions in the Middle East intensify competition for oil supplies.
The initiative is designed to help stabilize regional supply chains and reduce the risk of energy shortages affecting Japan and its partners.
Prime Minister Sanae Takaichi said the funding would be equivalent to as much as 1.2 billion barrels of oil, or roughly one year’s worth of crude imports for the Association of Southeast Asian Nations (ASEAN).
The support will be channeled primarily through state-backed institutions including the Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI).
Takaichi announced the plan following a meeting of the Asia Zero-Emission Community (AZEC), a Japan-led initiative focused on accelerating decarbonization and the energy transition across Asia.
Southeast Asian countries typically hold smaller oil stockpiles compared with Japan, making them more vulnerable to disruptions in crude and petroleum product supplies.
The announcement comes as concerns grow over tighter energy markets, with potential knock-on effects on industries in Japan and across the region that rely on steady access to imported energy and materials.
