Japan and Australia agreed Sunday to ensure a stable supply of energy resources such as liquefied natural gas and coal from Australia to the resource-poor Asian nation, amid Tokyo's concerns over Canberra's changing energy policies.
Japan's Economy, Trade and Industry Minister Yasutoshi Nishimura met in Melbourne with his Australian counterpart Don Farrell for the fifth Japan-Australia Ministerial Economic Dialogue. They were joined by Climate Change and Energy Minister Chris Bowen and Resources Minister Madeleine King.
Nishimura told reporters after the meeting that they "agreed to ensure a stable supply of resources such as LNG and a reliable investment environment" in Australia's resources and energy sector, and further expand the cooperation in the sector to cover such resources as hydrogen and ammonia.
He added that Japan and Australia, the biggest supplier of LNG, coal and iron ore to his country, will also cooperate in establishing supply chains for critical minerals, such as nickel and rare earths.
However, he expressed the ongoing concern in Japan over impacts to supply, following Canberra's tightening of greenhouse emissions controls.
In July, a new Australian law came into force, requiring new LNG facilities to be carbon neutral, while facilities already in operation need to lower their carbon emissions by 4.9 percent a year until 2030, and more after that year.
Nishimura said he fears the emission regulation could impact LNG and coal businesses. "I reiterated to Minister Bowen that Japanese companies are more concerned than ever about the predictability of investment in Australia" due to the law, he said.
He also voiced concerns over Australia's prioritizing LNG supply for domestic use as it in August last year said it may trigger a gas security mechanism that would allow the government to limit LNG exports in the event of a shortfall to ensure enough gas is available locally.
But Australia eventually did not resort to the mechanism after it struck a deal with local gas producers to plug a forecast gap in domestic supply.
Speaking at a working lunch ahead of the meeting, Farrell sought to reassure Japan of Australia's ongoing commitment, stressing that Australia will "continue to be Japan's most reliable energy security partner as we both progress towards ambitious emissions reduction targets."
Nishimura's visit to Melbourne for the dialogue coincided with a three-day meeting of the Australia Japan Business Co-operation Committee that started Sunday. It will be attended by over 600 business leaders and government officials from both countries, the committee said.
