Earn-Out, Locked Box, and Retention: Private Acquisitions (Japan)

Malaysia is moving towards a more sustainable energy future as it chases ambitious renewables targets, with increasing initiatives and the gradual rolling out of a liberalised electricity market. Corporate power purchase agreements (PPAs) have emerged as a game-changing solution within this framework.

Hong Kong is strategically positioned to influence the shift to sustainable finance and drive investment in green technology and infrastructure. One of the chief advantages Hong Kong holds is its potential to act as a super-connector between Mainland China and the global market. Plans made in late 2024 are set to further grow its green debt market and make it a ‘go-to’ for sustainable financing (find more on the Sustainable Finance Action Agenda below).

For Japan's energy transition, these agreements are game-changers. In a post-Fukushima context where the country has struggled to balance energy security with decarbonisation goals, corporate PPAs provide a market-based mechanism to finance new renewable capacity outside traditional subsidy schemes. The data centre sector's entrance into this space is particularly noteworthy, as it addresses the dual challenges of powering Japan's digital economy while meeting increasingly stringent corporate environmental commitments.