Tokyo: Japan is a world leader in funding natural gas projects, while simultaneously spearheading an Asian forum advocating for the phase-out of fossil fuels. Japan ranks among the largest public financiers of gas and oil production globally, despite its commitment to cease funding such fossil fuel projects, a pledge made during the G7 summit in 2022. According to Deutsche Welle, Japanese public financial institutions are reported to have invested approximately $93 billion in oil and gas projects from 2013 to 2024, with $56 billion allocated to overseas liquefied natural gas (LNG) development projects. The Institute for Energy Economics and Financial Analysis (IEEFA), a US-based research center, refers to this strategy as the "Japanese model" of LNG investment, highlighting Japan's policy efforts over decades to promote direct overseas investment in LNG export projects. This approach has positioned Japan as a key driver of LNG development in the Asia Pacific region. The IEEFA report points out Japan's dual benefits from these investments: securing more LNG supplies for domestic energy consumption and gaining improved access to markets where Japan can resell surplus LNG. The report notes that Japan's LNG resales to overseas markets have reached unprecedented levels, shifting its role in the global LNG market from a consumer to an exporter. Moreover, Australian LNG has been identified as the primary source of supply for Japanese LNG shipments to other countries. Despite its heavy investment in LNG, Japan remains highly reliant on energy imports, with oil, coal, and LNG accounting for over 83% of its primary energy mix, as cited by the Asia Natural Gas and Energy Association. Following its fossil fuel financing pledge at the 2022 G7 summit, Japan initiated the Asia Zero Emission Community (AZEC) to foster cooperation on achieving net-zero emissions in the Asia region. In August 2024, Japan signed 70 Memorandums of Understanding with 11 nations, including Australia, Brunei, and Indonesia, focusing on natural gas, ammonia, and carbon capture storage (CCS) technology projects. However, a 2024 study from Cornell University found that LNG involves 33% more emissions than coal when processing and shipping are factored in. Loopholes in Japan's G7 pledge permit investments in LNG projects, despite their contribution to greenhouse gas emissions. Hiroki Osaka, a campaigner at Friends of the Earth Japan, points out that Tokyo's pledge is based on "unabated fossil projects," allowing countries to proceed with projects deemed "abated" through measures like CCS. Indonesia serves as a key example of Japan's influence in shaping energy policy. In November 2022, Indonesia signed a deal to mobilize $20 billion for energy transition, led by the US and Japan, at the G20 summit. Japan played a role in crafting Indonesia's long-term energy plan to create a demand for gas. Despite Indonesia's vast renewable energy potential, natural gas remains more costly and less reliable, as highlighted by the Institute for Essential Services Reform, an Indonesian policy research center. Critics like Wicaksono Gitawon, a policy strategist at the Indonesian NGO CERAH, argue that Japan's continued investment in LNG could hinder Indonesia's transition to renewable energy. Energy policy consultant James emphasizes that Japan is meeting the demand for technology and investment from countries like Indonesia, which have included natural gas and LNG in their energy transition strategies. The third AZEC meeting is scheduled to take place in Malaysia this September.