Considering that the world is expected to make a transition to a low-carbon economy over the next few decades, and that implementing the transition requires collaboration, the Japan Ministry of Economy, Trade and Industry and the South African Department of Higher Education, Science and Innovation have signed a memorandum of cooperation (MoC) to advance the interests of both countries, while simultaneously creating synergies in the field of green hydrogen and ammonia.

The MoC will largely focus on science, technology, innovation and investment in the relevant areas.

Signed by Japan’s Economy, Trade and Industry Minister Nishimura Yasutoshi and South Africa’s Higher Education, Science and Innovation Minister Dr Blade Nzimande, the MoC recognises that South Africa “has the ability to be an internationally competitive producer of hydrogen and ammonia” and that Japan has “technological advantages in the hydrogen and ammonia fields, and is making efforts to expand demand for hydrogen and ammonia”.

Bearing in mind that both countries have a “mutual understanding” that cooperation between them in the hydrogen and ammonia fields will contribute to the development of national competencies in the production of key components from the hydrogen and ammonia value chain and their application, the MoC “provides the opportunity for the creation of new industries, leading to the development of social progress and the creation of employment”.

Additionally, hydrogen strategies were announced by both countries to accelerate efforts towards the clean energy transition, with both countries having reiterated that there are “already good examples of cooperation in the field of hydrogen and ammonia” available.

The MoC was signed during the sixth Hydrogen Ministerial Meeting, in Tokyo, on September 25.

BACKGROUND

Considering the diverse geographical conditions and energy needs in Asia, Japan and South Africa’s representatives at the Ministerial meeting acknowledged the crucial importance of striking a balance between the region's decarbonisation efforts and sustainable growth.

The representatives expressed a collective commitment to supporting a green, pragmatic and effective energy transition, underscoring the need for comprehensive information in the region.

The significant role of transition finance was highlighted during the Ministerial meeting, along with the expectation for credible transition plans, which the country representatives emphasised as critical when considering science-based and quantitative pathways, including national strategies crucial for the development of these plans.

Japan and South Africa’s representatives welcomed various initiatives from both the public and private sectors, such as the Asia GX Hub Initiative by Japan's Financial Services Agency, Asia Transition Finance Guidelines and Annual Reports by the Asia Transition Finance Study Group, as well as the Asean Taxonomy for Sustainable Finance by the Asean Taxonomy Board.

Additionally, they acknowledged the Climate Transition Finance Handbook by the International Capital Market Association and other efforts aimed at facilitating the transition.

Recognising the complex challenges of transitioning to a green economy and achieving sustainable development, the Ministers also stressed the need for dialogue among diverse sectors, including public authorities, private industries, and financial institutions.