The Market Monitor Minding the Nation's Business
Japan is positioning the Philippines at the front of the line for a massive new energy support initiative, signaling deepening ties between Manila and Tokyo at a time of global fuel uncertainty.
During a visit to Manila, Japan’s special envoy Fumio Kishida expressed confidence that the Philippines could be among the first recipients of assistance under a planned USD10 billion program aimed at helping Asian nations weather the ongoing oil crisis.
Kishida, who also serves as supreme advisor to the Parliamentary Association of Asia Zero Emission Community (AZEC), delivered a personal letter from Prime Minister Sanae Takaichi to President Ferdinand Marcos Jr., underscoring Tokyo’s push for stronger cooperation on energy resilience.
In a press briefing, he revealed that the letter conveyed Takaichi’s “desire” to expand collaboration with the Philippines through 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,” he told reporters.
The USD10 billion POWERR Asia initiative is designed as a procurement and cooperation framework to help countries secure stable energy supplies. It was formally introduced by Takaichi during an online AZEC summit on April 15, which Marcos attended.
Following his meeting with the President, Kishida also held talks with Energy Secretary Sharon Garin to explore expanded cooperation—both bilaterally and within the AZEC framework—particularly in nuclear energy and liquefied natural gas.
Originally conceived as a platform to drive decarbonization and attract global investments, AZEC is now being recalibrated to address immediate energy security concerns across its 11 member countries.
Kishida noted that shifting global conditions, especially tensions in the Middle East, have forced the initiative to evolve.
“The current situation created a stance where there is a further need to stabilize the energy supply for each of this country… That is our current focus and the need for AZEC to evolve is there as well,” he said.
He added that around 30 projects in the Philippines—spanning renewable energy, biotechnology, and LNG—are already moving forward through a mix of public and private investments under AZEC.
For her part, Garin reaffirmed the Philippines’ commitment to the Japan-led initiative, stressing the urgency of reinforcing energy systems amid growing global uncertainties.
She pointed to developments in the Strait of Hormuz as a stark reminder of how fragile energy supply chains have become.
“This reality compels us to accelerate our energy transition that is secure, resilient, and responsive to present challenges,” she said.
“For the Philippines, AZEC remains a vital platform for practical and inclusive cooperation—one through which we can collectively transform our mission into concrete, implementable actions,” she added.
The AZEC delegation, led by Kishida, is in the Philippines from April 30 to May 2 and is scheduled to visit Japanese firms operating across Luzon.