Adapted from "Europe Leading the Way in Carbon Neutrality:
Supporting DBJ's investment and financing and Japaneses companies' GX"

Based on DBJ's GRIT strategy ^*, DB J Europe is expanding its business in Europe in four areas: energy, transportation, digital, and new fields based on future social needs (see the chart below). The company strives to gather information and expand its region-specific human networks, supporting the execution and monitoring of DBJ's investments in companies, projects, and funds.

It is also an important role for DBJ to work closely with its domestic divisions in charge of related sectors, and to return to Japan the knowledge gained from advanced initiatives in Europe. The company also promotes cross-border collaboration by making use of its local network and DBJ's domestic network to establish contacts between European companies and Japanese companies and investors. The entire DBJ Group aims to combine financial strength, innovation, and global connectivity to support Japanese companies, not only to succeed in the market but also to contribute to the creation of more broadly integrated regions, to society, and to carbon neutrality.

DBJ Europe's front-line operations, which mainly deal with customers, consist of about 10 members in the four areas mentioned above. DBJ employees in Japan are able to enhance their expertise by specializing in specific industries and regions; whereas, each person in DBJ Europe is responsible for a wide range of industries and regions, enabling them to gain a wide range of experience.

Kanako Shimazaki, the leader of DBJ Europe's team in charge of new business areas including hydrogen, ammonia, and carbon dioxide capture and storage (CCS) ("hydrogen Team"), says, "DBJ Europe, based in London, is fully leveraging its geographical advantage to expand its network and provide information to Japan by taking full advantage of the London-based DBJ Europe's 'geographical advantage'.

Shimazaki continues, "In Europe, for example, hydrogen plays an important role in achieving the goal of carbon neutrality, which effectively reduces greenhouse gas emissions to zero, and various projects are underway. We are also active in
introducing advanced policies, subsidy systems and regulations. DBJ Europe also receives information from countries and regions such as Northern Europe, which have abundant natural resources and high rates of renewable energy use, and the Middle East, which is in a hurry to change its energy policy. DBJ Europe aims to provide information that will serve as a reference for efforts toward carbon neutrality while being aware of Japan's current situation and challenges."

Mana Oshima, who has been a trainee at DBJ Europe since June 2024, says, "It is very exciting to see and hear first-hand the latest developments in Europe, which is the rule-maker for carbon neutrality, and to have many opportunities to talk directly with frontline operators and investors. As we look at the dynamism of Europe for the future of the energy industry, I feel that this is an opportunity to think about what is necessary for the medium- to long-term development of the Japanese economy."

DBJ Europe's hydrogen team consists of people from diverse backgrounds, including Kevin Solomon, a local staff member from the UK.
Solomon emphasizes the strength of being based in Europe, saying, "DBJ Europe understands the dynamics of the European market, including various regulations and the investment environment, which helps DBJ make strategic decisions."

Members of the hydrogen team actively participate in conferences held across Europe, and actively engage in networking, such as meeting with organizers and participants to exchange information on future policies and advanced practices.
Shimazaki and Oshima both say that Solomon, well-versed in local information, is a very reassuring member when it comes to building relationships.

The hydrogen team will focus on promoting investment in emerging clean technologies that have the potential to transform existing energy systems. While carbon neutrality is being advocated globally, many DBJ clients are facing challenges in realizing it. Shimazaki says, "DBJ Europe can also play a role in supporting companies' GX initiatives. Many new technologies are emerging in the field of clean energy. For companies that are struggling to keep up with diverse knowledge, we would like to provide useful information based on the situation in Europe, which can be said to be Japan's future several years ahead."

There is no doubt that efforts to achieve carbon neutrality by 2050 are in full swing. In the hydrogen value chain, there are many technologies that are still on the way to commercialization in the areas of production (upstream), transportation and storage (midstream), and consumption (downstream). There are also many issues that need to be addressed in order to realize a hydrogen society, such as fostering and acquiring customers. Shimazaki says, "I would like to increase investment to solve these issues one by one."

DBJ has also invested in funds in the hydrogen space. In 2022, DBJ invested in a fund specializing in low-emission hydrogen managed by Hy24 SAS (headquartered in France), and in 2024, DBJ invested in a fund managed by APV, a venture capital specializing in the hydrogen space. Through the fund, The Bank indirectly invests in companies engaged in hydrogen-related infrastructure and startups with applicable technologies. Starting on the next page, we introduce our investment in APV as a case study.