Tadashi Maeda, Japan In Conversation With Mihir Sharma, ORF | Raisina Dialogue 2023

Well, thank you. Besides that political argument, particularly the Russia-Ukraine issue, there are multiple points to discuss in G7 and also G20. We are a member of G20 and G7, and the G7 presidency, as you correctly addressed, obviously the path to carbon neutrality is one of the most important pieces. And also, while we discussed the just transition, the new framework that the JETP (Just Energy Transition Partnership) is to be addressed. It started from South Africa, then expanded to Asian countries, in particular Vietnam, Indonesia, and also India will possibly be a part of this idea. And also, on November 14th of last year, on the margin of a G20 Bali, Prime Minister Kishida and President Jokowi of Indonesia jointly announced and launched the so-called Asia Zero Emission Community, which is supplemental to the idea of JETP. However, there is some difference between the two. Our approach of the Asia Zero Emission Community is to be more practical, and also that the language that each country's agenda, for example, many countries including India have on the growth strategy, and also that they are struggling with the compatibility between carbon neutrality and growth. So these countries may not sacrifice economic growth because of carbon neutrality. Therefore, each country has their own agenda. So that's the idea of AZEC is trying to accommodate these differences. That's ideal. And in September, on September 1st of 2022, Prime Minister appointed me as a special advisor to the cabinet of administration, and my main task is to materialize the AZEC. One of my agenda, I visited Indonesia and also Vietnam, and I talked about this idea with leaders of these two countries, in particular Indonesia, and as a G7 previous G20 presidency. So that's a point.

Yeah, the former Prime Minister is a true visionary because he delivered the key note speech in 2006 in the Indian Parliament on free and open Indo-Pacific. It's his product. And now everybody talks about the free and open Indo-Pacific, but this is his idea. That's a very important piece. And Prime Minister Kishida wants to legitimize and also succeed this legacy of Prime Minister Abe and to develop more. Besides that, the very flexible framework of the Quad is very important. And also equally important is to develop the bilateral relationship, not just under the framework of the Quad. So we have both the presidency of G7 and G20. We need to coordinate in a more effective manner. Therefore, for example, in terms of the energy transition, we can launch simultaneously in G7 and G20 on the same title mechanism to promote that energy transition in a just energy transition. So idea, for example, to have a verification mechanism of the carbon dioxide gas emission and to develop the ideas of the carbon credit. Because without verification mechanism, carbon credit is not worth investing. So that's very important. And for example, that's my own idea: to create a verification task force to, for example, the National or World Bank group to operate this framework. For example, the EV obviously while driving does not emit any carbon dioxide gas, but in the manufacturing stage, in the life cycle assessment, it is more important. It is very down to earth, not just on the power generation sector but on the infrastructure, stands for less around 30 to 40, but other sectors like cement and steel industry and so on. This is all on the shoulder of different sectors, so we need to standardize this kind of mechanism and to be verified correctly.

Yeah, well, we intended at the continuously, that's the issue of the green bond. At the same time, we need to pay attention to the use of proceeds of the bond issued by the green bond. And also, in India in particular, we have been launching the Green Growth Platform with the counterpart in India, which is NIIF. This has two different aspects: one is the joint investment fund between NIIF and JBIC, and also that's the direct lending in-depth financing to the corporation company that NIIF already invested or going to invest, if it goes through the criteria on green growth. That concept is a very brand new idea and makes a comprehensive approach to support and promote the green growth in India.

Some implications: one is the same cost of the daily cash, and second is the financial inclusiveness. So many of the poor, especially in developing countries, in particular females, do not have a bank account. So even if they don't have any bank accounts, we include them financially. Digital transformation is a very important and very robust instrument to that financial inclusiveness. Therefore, this is very important. Therefore, the venue, whether G20 or G7, we need to discuss more correctly. And also we have to pay attention to cross-border transmission, cross-border settlement of finance. So it would make a sea change of the financial circumstances right now. Therefore, it will reduce some of the expanding gap of income level and then serve as equality and also fairness. That's very important.

Well, I say India and Japan partnership is ideal because India is an emerging and growing and rising power. India already surpassed the United Kingdom in terms of the size of economy, the GDP, and it may be in the very near future that they surpass Germany or Japan. But we need a very trustworthy India as a leader of the region or leader of the global issues. It must be addressed correctly. Japan started as a member of G7 in the 1970s. Therefore, we have a track record. We have a mutual supplement because we are aging, but we have the track record as a leader of G7. That's why I said it is a very ideal partnership. And also, we are going to develop together with India, not just only at the level of economic growth, but to develop a new kind of concept which is good for everybody in the world. And also, one of Japan's advantages is trust. We after the war, we have been trusted because of our ancestors' effort and my dad and mom's generation. And we need to create a new and good, stable, prosperous world for the generation to come, for children and grandchildren. So that is very important. So Japan-India partnership, this partnership group, will make a very trustworthy framework that is just beyond maybe beyond the Quad, our G7, G20. That's a very key cornerstone of the stability and freedom, and both are committed countries to the promotion of fair democracy.