Japan, the World Bank and several partner countries on Wednesday launched a $40 million partnership project to diversify supply chains for clean energy products, a move seen by some analysts as aimed at addressing their over-reliance on China.
The initiative will offer financial and technical support to help emerging market and developing countries boost production of clean energy goods and "increase their participation in global mineral value chains," Japan's Ministry of Finance and the World Bank said in a statement.
Japan plans to contribute a total of $25 million to the venture, Finance Minister Shunichi Suzuki told an event on the project's launch held on the sidelines of the International Monetary Fund and World Bank meetings in Marrakech.
Along with contributions from Canada, Italy, South Korea and the United Kingdom, the total initial contribution will be more than $40 million, according to the statement.
"Developing countries from Latin America, Africa and all the Pacific region have immense potential to play key roles in global value chains for renewable energy," World Bank President Ajay Banga said in the event.
"For them to capture a larger share of the value-add along the supply chain, they need our support to build mineral procesing and manufacturing capacity."
South Korea's Deputy Prime Minister Choo Kyungho said the scheme will help reduce risks surrounding supply chains for minerals crucial for his country's manufacturers.
Japan, as this year's G7 chair, has initiated the scheme, named "Partnership for Resilient and Inclusive Suppy-chain Enhancement" (RISE), reflecting concern among some advanced nations over their heavy reliance on China for key mineral resources and goods related to energy security.
In a joint statement in May, finance leaders from the Group of Seven (G7) advanced economies said diversification of supply chains can "contribute to safeguarding energy security" and help maintain macro-economic stability.
Chile and India attended Wednesday's event as representatives of prospective recipient countries.
"I encourage other interested countries to join this important initiative," Suzuki said in the event.
DHL Global Forwarding (DHL GF) paints a broadly stable picture for air cargo demand in its November ‘Air Freight State of the Industry‘ report.
The highest air cargo rates of the year from Asia to North America and Europe are riding not on demand, but on constrained capacity due to weather disruptions and too little...
Rates on block space agreements out of Asia are expected to fall next year, as capacity continues to come into the market – but at least, demand is rising, said Kathy Liu,...
But rush to apply leading technologies leads to challenges in integrating them all together, for both transportation and warehousing. Even under difficult market conditions,...
Lionel van der Walt, chief growth officer at tech provider Raft, told The Loadstar on the sidelines of last week’s Tiaca conference in Brussels that the emissions-reporting...
DHL Express announced it has completed the $409 million third-phase expansion of its central Asia hub in Hong Kong, improving parcel connectivity with the rest of the world...
IATA has released data for global air cargo performance in September that shows that the industry enjoyed a continued moderate recovery in the month.
Ultra-large and large forwarders are losing market share in air freight to small and medium-size agents, according to WorldACD Market Data.
Airfreight rates on major east-west trades picked up in October as the industry entered its traditional peak season (see dashboard at end of article).