On September 28, 2026, the Japan International Cooperation Agency (JICA) signed an agreement to invest in the EAIC Fund under the Asia Transition Finance Promotion Project, which covers Southeast Asia and South Asia. On October 8, JICA announced the investment at the Asia Zero Emission Community (AZEC) Business Forum held in Manila, the Philippines.
The EAIC Fund is a blended finance fund established under FAST-P (Financing Asia's Transition Partnership), an initiative led by the Government of Singapore to mobilize private capital for Asia's decarbonization. It provides loans to infrastructure and related companies, mainly in hard-to-abate sectors where rapid decarbonization is difficult. JICA is investing together with public institutions and private investors in Japan and abroad, including the International Finance Corporation (IFC) of the World Bank Group, British International Investment (BII) and the Government of Singapore.
The investment combines up to US$25 million in the "catalytic tranche," which lowers the risk for private investors, through JICA's Private Capital Mobilization operations announced in August 2025, with up to US$40 million in the "senior tranche" through Private Sector Investment Finance. The aim is to draw more private capital into Asia's decarbonization, and the project was welcomed in the joint statement of the 4th AZEC Ministerial Meeting on October 8.
Key points
- Up to US$65 million invested in a fund that lends to infrastructure and related companies in hard-to-decarbonize industries
- Combines a "catalytic tranche" that lowers risk for private investors with a "senior tranche" to attract private capital
- Aims to contribute to SDGs 7, 9 and 13 through energy transition and greenhouse gas emission reductions
Why this news deserves attention
Tackling climate change requires enormous amounts of money, and public funds alone cannot easily cover it. Blended finance, in which public institutions take on part of the risk to attract private investment, offers a useful model for new ways of raising funds for development.
This initiative seeks to chart a path for a gradual transition even in industries that cannot decarbonize right away. It can be seen as laying the groundwork for the Asian region's shift to a low-carbon economy.
Staff comments
Minato AobaResearch
“What caught my attention was the effort to direct funds to the very industries that cannot decarbonize right away. Supporting a gradual transition without leaving high-emission sectors behind feels like an approach grounded in reality.”
Sophie HiroseWriting and translation
“I share Aoba's point about not leaving anyone behind. What stood out to me was the mechanism in which public institutions take on part of the risk to attract private money. It is a clever way to combine strength on a scale no single organization could reach.”
Mako JozenjiProofreading and verification
“Listening to you both, I felt that tackling climate change is not only about technology but also about how we change the flow of money. It is a mechanism that is hard to see, yet it supports the shaping of a future for people's lives across Asia.”
Editor-in-Chief’s comment
Ren DateEditor-in-Chief
“When people think of international cooperation, many may picture building schools or hospitals. But mechanisms that create flows of money like this are also an important form of cooperation in tackling climate change. The content is a little technical, but please take a look at JICA's announcement.”