Indo-Pacific Analysis Brief Vol 63
Decarbonisation, Security and Strategy: Carbon Capture and Storage in the Australia–Japan Partnership
June 2026
By Daein Cha, Senior Research Adviser: Energy
Carbon Capture and Storage (CCS) can help Australia and Japan to decarbonise key industries while enabling new low‑emissions value chains and strengthening regional stability.
Drawing on their longstanding partnership in energy and resources, the report argues that this collaboration must now extend into carbon management — which could help both countries strengthen resilience and reduce the risk of higher costs, decreased competitiveness and carbon leakage.
Key Messages
↗ Japan and Australia need each other more than ever. This longstanding partnership in energy and resources must now extend into carbon management.
↗ Carbon Capture and Storage (CCS) is a bridge technology. It can help Australia and Japan to decarbonise key industries while enabling new low‑emissions value chains and strengthening regional stability.
↗ Australia offers four unique advantages: scale, certainty, diversification and strategic trust.
↗ Energy partnership brings shared responsibility. Supporting emissions management, including CO₂ storage, is part of a modern, long-term partnership.
↗ Action is needed now. Bilateral CCS arrangements, stronger carbon value recognition, and clearer policy prioritisation are critical.
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The Indo-Pacific Insight Series offers in-depth analysis of strategic trends shaping the Indo-Pacific. These publications draw on regional expertise to provide considered, forward-looking assessments of key foreign policy, security and economic issues. Designed for policymakers, analysts and engaged readers, the series explores the deeper context behind headline developments.