| By Linyi Zheng |

A newly launched energy partnership, known as the Resident and Inclusive Supply-Chain Enhancement (RISE), is being backed by Japan, the United Kingdom, South Korea, Canada, and Italy. This initiative aims to bolster the renewable energy sector in emerging countries by enhancing their supply chains. The partnership involves a dedicated fund under the World Bank, which receives contributions from participating countries. Its objective is to incentivize local companies to focus on the extraction and marketing of resources required to produce electric vehicles and solar panels.

The partnership is poised to provide valuable financial and technical assistance to emerging markets and developing countries to bolster their production of clean energy goods and enhance their involvement in global mineral value chains. This partnership represents a promising step toward greater sustainability and inclusivity in global supply chains.

Japan has committed a substantial amount of funds, specifically $25 million, to the partnership, as announced by Finance Minister Shunichi Suzuki during a ceremony held on the sidelines of the International Monetary Fund and World Bank meetings in Marrakech. The total initial contribution will be more than $40 million.

In May 2023, the G7 finance ministers and central bank governors reached a consensus on the new framework. One of the driving factors behind this decision was Japan’s reliance on China for the processing of minerals essential to the production of electric vehicles, such as rare earth and lithium. Concerns have been raised regarding the potential for supply chain disruptions in the event of export restrictions or natural disasters. Moreover, according to Nikkei, developed countries face limitations in establishing renewable energy networks. Accordingly, partnerships such as RISE reinforce the essential importance of collaborations with organizations such as the World Bank that specialize in providing long-term development assistance to developing and emerging nations.

Photo Credit: The Nihon Keizai Shimbun