Policy Updates

On January 17, 2025, JICA announced a new partnership with the AIIB which aims to support infrastructure development in Asia, with a focus on enhancing sustainable and resilient infrastructure to address regional challenges.

JICA and AIIB will jointly finance projects and share expertise to promote economic growth, environmental sustainability, and poverty reduction in Asia.

On December 17, 2024, the Government of Japan committed US$10 million for the Project for the Recovery of Maternal and Child Health Equipment in flood-affected areas of Khyber Pakhtunkhwa and US$19 million for the Flood Management Enhancement Project in the Indus Basin. The agreements were signed in Islamabad between Japanese officials and Pakistan’s Ministry of Economic Affairs.

The health project focuses on equipping 21 facilities in the Hazara Division to reduce maternal and neonatal mortality rates by improving medical services such as institutional deliveries, caesarean sections, and ultrasound examinations by 2029. It aims to enhance care quality, boost trust in the healthcare system, and ensure equitable access to high-quality services in Khyber Pakhtunkhwa province.

The flood management project will install 45 hydrological and hydraulic observation networks in Khyber Pakhtunkhwa and Punjab and rehabilitate river structures to mitigate economic losses from flash floods in the Indus River basin. Integrating the "Build Back Better" approach strengthens disaster resilience and improves river management data. Japan’s contributions align with its US$77 million pledge made at the Geneva Conference, underscoring its commitment to improving health and disaster preparedness in Pakistan.

On December 1, 2024, Japan approved a supplementary budget totaling JPY52.4 billion (US$352 million) for global health-related initiatives in FY2024, which focuses on several overarching themes, including combating infectious diseases, enhancing health equity, strengthening health systems in developing regions, and preparing for future pandemics.

It also aims to promote UHC, expand vaccine accessibility, and foster innovation in medical technology. These initiatives are strategically aligned with Japan’s goals of improving global health outcomes while supporting its economic and diplomatic interests.

The funding will be allocated across the following initiatives:

• JPY290 million (US$2 million) to promote foreign medical talent development in the Indo-Pacific region, enhancing health standards and economic growth;
• JPY120 million (US$800,000) to medical inbound projects, linking foreign patient demand to Japan’s medical and regional economic growth;
• JPY22.1 billion (US$148 million) to the Global Fund to fight HIV/AIDS, tuberculosis, malaria, and support pandemic preparedness in developing countries;
• JPY7.7 billion (US$52 million) to CEPI to accelerate vaccine development for epidemic-prone diseases like Ebola and coronaviruses;
• JPY2.8 billion (US$19 million) for GHIT to advance R&D for treatments for neglected tropical diseases, tuberculosis, and malaria;
• JPY2.4 billion (US$16 million) to WHO for Monkeypox prevention, response, and health system strengthening in outbreak-affected regions;
• JPY200 million (US$1 million) to establish a WHO UHC Knowledge Hub, promoting global health equity and knowledge sharing;
• JPY1.3 billion (US$9 million) for Gavi to strengthen vaccine access and immunization efforts in low-income countries;
• JPY300 million (US$2 million) to support research and development for effective treatments for emerging infectious diseases;
• JPY160 million (US$1 million) to enhance public health crisis management through research on emerging diseases, Mpox, and syphilis prevention;
• JPY6.5 billion (US$44 million) to prepare for the establishment of the National Institute for Health Crisis Management; and
• JPY8.5 billion (US$57 million) to enhance the infection response capacity of designated medical facilities for emerging diseases.

Japan’s strategic allocation of these funds reflects its dual objectives of improving global health outcomes and fostering the global expansion of its health industries.

On November 20, 2024, the Japanese government pledged US$70 billion in public and private climate support for 'developing countries' through 2025 at COP29 in Baku.

Japanese Minister of the Environment Asao Keiichiro emphasized Japan’s role in advancing global climate finance, contributing to the NCQG while doubling adaptation funding, and providing an initial US$10 million to the Fund for responding to Loss and Damage.

Japan outlined its comprehensive approach to mitigation and adaptation, including updating its NDCs by February 2025, launching the GX 2040 Vision and accelerating international carbon market projects under Article 6 of the Paris Agreement. The initiative is focused on leveraging circular economy principles, expanding carbon market mechanisms, and enhancing transparency through the Baku Global Climate Transparency Platform.

Japan’s financial and strategic contributions underline its commitment to achieving the 1.5°C Paris Agreement goal. Asao called for urgent global collaboration to secure operational rules for Article 6 and to ensure the success of COP29 through ambitious, cooperative, and transparent climate action.

On November 11, 2024, JICA announced a new climate strategy for agricultural and rural development cooperation to address the pressing need for climate resilience and sustainable practices, particularly in developing nations facing heightened climate risks.

Emphasizing human security, this strategy aligns with Japan’s commitments under the Paris Agreement and integrates both adaptation and mitigation measures across JICA’s agricultural and rural projects to enhance food security, bolster livelihoods, and strengthen resilience against climate impacts.

The strategy identifies six core actions:

• Developing climate impact assessment tools;
• Proposing customized adaptation approaches;
• Reviewing current projects for climate impacts;
• Incorporating resilience in new projects;
• Promoting mitigation techniques; and
• Advancing knowledge-sharing efforts.

Key focal areas include:

• Enhancing water resource efficiency;
• Promoting sustainable farming; and
• Supporting innovations to reduce greenhouse gas emissions, especially in regions heavily affected by climate change.

Through this framework, JICA aims to create more sustainable agriculture systems by 2030. The strategy fosters cross-sector collaboration, data-informed assessments, and practical climate solutions to build resilient rural economies. Japan is also committed to sharing insights and findings internationally, thus contributing to global efforts toward climate-smart agriculture and rural development.

On November 11, 2024, Japan and the US released it's strategy to enable the ADB to increase climate-related lending by up to US$7.2 billion over the next five years.

Japan has committed a sovereign guarantee of US$600 million, while the US provides US$1 billion, marking the first-ever use of sovereign guarantees specifically for climate finance. These guarantees will allow the ADB to lend more for climate initiatives without requiring new capital from member countries, setting a precedent for other development banks to follow.

This initiative supports the ADB’s long-term goal of providing US$100 billion in climate finance by 2030. Projects benefiting from this expanded lending include a sustainable aviation fuel program in Pakistan, partially funded by US$45 million from the ADB under this scheme. The guarantees will extend for 25 years, providing stability for long-term climate investments while addressing pressing environmental challenges in affected nations.

Japan’s leadership in this effort aligns with its broader commitment to addressing global climate issues. The ADB is sharing its model with other MDBs, including the WB and EIB, to enhance climate-related financing mechanisms. This approach responds to the estimated need for over US$2 trillion annually by 2030 to enable LMICs to transition to clean energy and adapt to a changing climate.

On October 24, 2024, the JICA signed an ODA loan agreement worth JPY6.6 billion (US$43 million) with , CELEC EP, to finance the Chachimbiro Geothermal Development Project (Phase I) in Imbabura Province.

The project seeks to promote renewable energy use, diversify Ecuador's power sources, and increase power generation capacity while contributing to climate change mitigation. The loan will cover essential activities, including exploratory drilling, resource evaluation, and planning for the Phase II construction of a geothermal power plant. JICA’s support includes equipment procurement and consulting services to ensure the project's effective implementation, with completion expected by August 2029.

This initiative supports Ecuador's sustainable development goals, particularly in expanding affordable clean energy and fostering climate action.

On September 5, 2024, Australian and Japanese officials met in Victoria to strengthen their Special Strategic Partnership at the 11th Foreign and Defence Ministerial Consultations.

Foreign affairs and defense ministers committed to reinforce collaboration through ASEAN. This would support the implementation of the ASEAN Outlook on the Indo-Pacific.

Australia will support the Asia Zero Emission Center which aims to increase the uptake of clean energy in the region. The two countries committed to improve the undersea cable infrastructure in the Pacific. They will also support pilot projects in the Pacific to improve cyber resilience.

On July 18, 2024, PALM10 took place, co-chaired by Japanese Prime Minister Fumio Kishida and Cook Islands Prime Minister Mark Brown, with leaders and representatives from 19 countries and regions, including Japan, 14 Pacific Island countries, New Caledonia, French Polynesia, Australia, and New Zealand.

The meeting focused on seven main topics aligned with the Pacific Islands Forum’s 2050 Strategy, which entailed:

• Political leadership and regionalism;
• People-centered development;
• Peace and security;
• Resources and economic development;
• Climate change and disasterss;
• Ocean and environment; and
• Technology and connectivity.

The leaders discussed regional and international affairs, reaffirming the Japan-Pacific partnership and adopting the PALM10 Leaders’ Declaration and Joint Action Plan.

Key sessions included:

• Opening Session: Kishida emphasized Japan's commitment to elevate relations and support the region's unity under the 2050 Strategy;
• Session 1: Focused on development cooperation and people-to-people exchanges. Japan surpassed its previous commitment, developing human resources for 7,500 people. Discussions included the safety of ALPS treated water discharge;
• Session 2: Addressed climate change and disaster resilience. Kishida announced the Pacific Climate Resilience Initiative with three pillars: disaster risk reduction, promoting decarbonization, and supporting Pacific-led efforts. Efforts to combat illegal fishing and maintain a stable Pacific Ocean were also emphasized;
• Session 3: Focused on people-centered development, economic development, and technology. Japan committed to continuing support in education, health, and infrastructure development, including submarine cables;
• Working Lunch Agenda 1: Discussed international cooperation for peace and security, upholding a free and open Indo-Pacific" and addressing issues like UN Security Council reform and North Korean threats; and
• Working Lunch Agenda 2: Kishida pledged further development cooperation and people-to-people exchanges for 6,500 people through 2027.

The meeting concluded with reaffirmations of partnership and future cooperation plans, highlighting the mutual commitment to tackling regional challenges and fostering development.

On July 2, 2024, Japanese NGO Keizai Doyukai and the ADB Group convened in Tokyo to discuss enhancing private sector investment in Africa, with a particular focus on engaging youth.

Established in 2009, Keizai Doyukai’s Africa committee seeks to foster growth through increased trade and investment, reflecting a commitment to mutual development.

The meeting also addressed climate finance, critical minerals, and climate change adaptation. CEO of Shibusawa and Co. Ken Shibusawa highlighted the upcoming TICAD9 in 2025, emphasizing youth engagement as a major theme. Vice President of the ADB Group Kevin Kariuki highlighted Japan's recent US$10 million funding for the AGIA, which aims to make projects more attractive to private investors. The Bank Group’s chief economist, Kevin Urama, stressed that Africa's growth heavily depends on private sector involvement.

Shibusawa and Kariuki cited successful ventures, like the Menengai geothermal project in Kenya, to illustrate Japan's strengths. The ADB, with its deep ties in Africa, provides risk mitigation tools and advises Japanese investors in the region. Discussions also explored using Japanese development assistance to drive private infrastructure investment, demonstrating Keizai Doyukai’s ongoing efforts to bolster economic ties and private sector engagement in Africa.