renewable energy. This constitutes another existing scheme that could promote
tripartite cooperation among China, Japan, and South Korea.
19.5.3 Technology Cooperation
Development of renewable energy in China, Japan, and South Korea has been
constrained by physical and geographical conditions in each country, leading to
development focusing on particular sectors. However, solar, wind, and biomass
energy have all been developed, which could offer opportunity for technology
cooperation among sectors. The fluctuation of renewable energy impedes tripartite
cooperation, but the Northeast Asia Grid offers a solution. It is a substantial
transnational project, which aims to connect the power grids of South Korea and
Japan with China, transforming the abundant renewable energy resources of China
and Mongolia into electricity that can be transmitted to Japan and South Korea
through ultrahigh-voltage direct current (DC) cables. Part of the construction will be
completed by 2022, effectively accelerating opportunities for cooperation.
19.5.4 Financial Support
Finance is another obstacle impeding tripartite cooperation among China, Japan, and
South Korea. Therefore, financial support is an integral part of promoting effective
cooperation. Firstly, full use should be made of the Asian Infrastructure Investment
Bank, Silk Road Fund, and Special Fund for Asian Regional Cooperation. These
regional financial institutions should provide an operational model of international
investment and financing. Simultaneously, relying on international capital markets
will allow continued expansion of funding sources through equity, bonds, and other
financing methods. Policy banks can provide preferential loans to support energy
companies in technological innovation. Commercial banks can provide various
financing channels such as syndicated loans, mergers and acquisitions (M&A)
loans, project financing, and issue energy securitization products such as green
bonds to improve the efficiency of capital use by energy companies.
19.5.5 Market-Oriented Approach to Cooperation
Instead of building a committee as in the European Union, tripartite cooperation can
be promoted through a market-oriented approach. In addition to the model of China–
Japan–South Korea + X, existing CDM projects offer a pathway to promote cooperation. Therefore, establishing a carbon trading market among China, Japan, and
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Y. Ling et al.
tripartite cooperation among China, Japan, and South Korea.
19.5.3 Technology Cooperation
Development of renewable energy in China, Japan, and South Korea has been
constrained by physical and geographical conditions in each country, leading to
development focusing on particular sectors. However, solar, wind, and biomass
energy have all been developed, which could offer opportunity for technology
cooperation among sectors. The fluctuation of renewable energy impedes tripartite
cooperation, but the Northeast Asia Grid offers a solution. It is a substantial
transnational project, which aims to connect the power grids of South Korea and
Japan with China, transforming the abundant renewable energy resources of China
and Mongolia into electricity that can be transmitted to Japan and South Korea
through ultrahigh-voltage direct current (DC) cables. Part of the construction will be
completed by 2022, effectively accelerating opportunities for cooperation.
19.5.4 Financial Support
Finance is another obstacle impeding tripartite cooperation among China, Japan, and
South Korea. Therefore, financial support is an integral part of promoting effective
cooperation. Firstly, full use should be made of the Asian Infrastructure Investment
Bank, Silk Road Fund, and Special Fund for Asian Regional Cooperation. These
regional financial institutions should provide an operational model of international
investment and financing. Simultaneously, relying on international capital markets
will allow continued expansion of funding sources through equity, bonds, and other
financing methods. Policy banks can provide preferential loans to support energy
companies in technological innovation. Commercial banks can provide various
financing channels such as syndicated loans, mergers and acquisitions (M&A)
loans, project financing, and issue energy securitization products such as green
bonds to improve the efficiency of capital use by energy companies.
19.5.5 Market-Oriented Approach to Cooperation
Instead of building a committee as in the European Union, tripartite cooperation can
be promoted through a market-oriented approach. In addition to the model of China–
Japan–South Korea + X, existing CDM projects offer a pathway to promote cooperation. Therefore, establishing a carbon trading market among China, Japan, and
358
Y. Ling et al.