Former prime minister Fumio Kishida, now the prime minister’s special envoy, meets with local and foreign media at a press briefing in Manila on April 30, 2026. | Photo courtesy of Avito Dalan/PNA
MANILA — Former Japanese Prime Minister Fumio Kishida said the Philippines is poised to become one of the first beneficiaries of Japan’s new USD 10‑billion regional energy financing initiative, citing Manila’s strong partnership with Tokyo and its active role in the Asia Zero Emission Community (AZEC).
Kishida, now Japan’s special envoy and supreme advisor to AZEC, made the remarks during a press briefing in Manila on April 30, where he also delivered a personal letter from Prime Minister Sanae Takaichi to President Ferdinand Marcos Jr. The letter expressed Japan’s “desire” for deeper cooperation on energy resiliency under the Partnership on Wide Energy and Resources Resilience Asia (POWERR Asia).
“I am also expecting that the Philippines is going to be one of the first countries to receive the assistance or the support from POWERR Asia,” Kishida told reporters.
Japan Sees the Philippines as a Priority
Kishida said the Philippines’ strong bilateral ties with Japan, its vulnerability to global energy shocks, and its existing collaboration under AZEC make it a natural early recipient of the financing package. Prime Minister Takaichi launched the initiative during an online AZEC summit attended by President Marcos on April 15.
Japan views AZEC as a platform to create a new decarbonization market in Asia and attract global capital. Kishida said the current Middle East crisis has intensified the need for Asian countries to stabilize their energy supply, prompting Japan to “optimize” AZEC to meet each member’s needs.
“The current situation created a stance where there is a further need to stabilize the energy supply for each of these countries… That is our current focus and the need for AZEC to evolve is there as well,” he said.
Thirty Projects Identified for Investments
Kishida revealed that at least 30 initiatives in the Philippines—spanning renewable energy, biotechnology, and liquefied natural gas (LNG)—are already “steadily progressing” under AZEC, supported by public and private investments.
These include projects in solar, wind, geothermal, biomass, and LNG terminal development, all of which require long‑term financing and technology partnerships. Japan is also exploring deeper collaboration with Manila in nuclear energy, an area Kishida specifically highlighted.
Energy Secretary Sharon Garin met with Kishida to discuss expanding cooperation and reaffirming the Philippines’ “full support” for AZEC and Japan’s vision to strengthen energy resilience in Asia.
DOE, NEDA, Private Proponents to Handle Financing
The initiative will be coordinated primarily through the Department of Energy (DOE), led by Secretary Garin, in partnership with the National Economic and Development Authority (NEDA) and relevant private‑sector proponents. DOE is the Philippines’ lead agency for AZEC‑related engagements and oversees the country’s energy transition roadmap.
Japan’s financing will flow through POWERR Asia and AZEC mechanisms, which are structured as procurement and cooperation schemes designed to support energy‑security projects across Asia.
Terms of the Financing Initiative
Japan’s regional energy financing package totals ¥1.5 trillion (approximately USD 10 billion). While Kishida said specific terms are still being finalized with partner countries, the initiative is expected to support projects that strengthen energy security, promote economic growth, and advance decarbonization.
“Specific details will be discussed among the countries involved,” Kishida said, noting that allocations will depend on each nation’s needs and project readiness.
The financing is expected to include a mix of low‑interest loans, technology cooperation, capacity‑building, and private‑sector mobilization, consistent with Japan’s previous AZEC‑aligned programs.
POWERR Asia launch at AZEC Summit
The POWERR Asia initiative was formally launched on April 15 during the AZEC summit attended by President Marcos. Kishida’s April 30 visit to Manila marked the first in‑person follow‑up, where he delivered the prime minister’s letter and held bilateral discussions with DOE.
The Philippines has been engaging Japan on energy cooperation since joining AZEC in 2023, but the new financing package represents the largest single regional commitment to date.
Other Institutions Supporting the Initiative
AZEC itself is a multilateral platform composed of 11 member countries, designed to pool regional expertise and attract global investment. Japan envisions AZEC as a mechanism to draw capital “from around the world” into Asia’s decarbonization efforts.
While the USD 10‑billion financing is Japan‑led, AZEC’s structure allows collaboration with international institutions, including development banks and private investors. Kishida emphasized that AZEC is evolving to meet the region’s energy‑security needs amid global market disruptions.
