ADB Launches New Energy Policy
ADB's Board has approved a new ADB Energy Policy to guide ADB operations in the energy sector. The 2009 Energy Policy will align ADB's energy operations to meet energy security needs, facilitate a transition to a low-carbon economy, and achieve ADB's vision of a region free of poverty.
ADB's energy sector operations have been guided by the Energy Policy approved by the Board in 1995 and its 2000 Review of the Energy Policy. ADB developed an updated energy policy in close consultation with internal and external stakeholders. Read more on the external consultation process and see a timeline of key milestones in the development of the new ADB energy policy.
Initially developed as an energy strategy, the document was upgraded to an energy policy based on the recommendation that, given the global importance of climate change and the urgent need for clean energy in Asia, ADB Board consideration be sought. The content of the new energy policy is congruent with the draft energy strategy developed in consultation with internal and external stakeholders, and is aligned with ADB's long-term strategic framework for 2008-2020, Strategy 2020. It represents a coherent translation of important elements of Strategy 2020 that prioritize energy-related objectives and identify the institutional capabilities needed for the future within a changing regional, global, and technological context.
ADB’s new energy policy aims to help DMCs to provide reliable, adequate, and affordable energy for inclusive growth in a socially, economically, and environmentally sustainable way. To this end, ADB’s energy policy has three pillars:
- promoting energy efficiency and renewable energy
- maximizing access to energy for all
- promoting energy sector reform, capacity building, and governance
Implementation of the policy will be based on the following principles:
- Support for energy efficiency improvements and renewable energy projects will be prioritized and broadened to reach as many sectors in as many ways as possible. This will (a) ease growth in fossil fuel demand and upward pressure on energy prices, (b) improve energy security, and (c) reduce emissions of greenhouse gases.
- Efforts to provide energy services for inclusive economic growth will be wide-ranging, and programs to extend energy services to communities and groups will be accelerated. Because Millennium Development Goal targets cannot be met without access to modern energy services, access to energy is essential to reducing poverty.
- Effective regional cooperation in the energy sector will be promoted to strengthen energy security.
- Energy sector reforms, capacity building, and governance will be emphasized to increase investment and efficient use of resources. Private sector participation (and public-private partnerships) will be encouraged to enhance energy sector efficiency through competition, and to increase investable resources, but not as the end objective of reforms.
- All energy sector investments will comply with ADB safeguards policies regarding the environment, involuntary resettlement, and indigenous peoples to ensure that affected persons are protected from impoverishment risks and development programs for such vulnerable groups are incorporated and implemented.
- ADB will not be involved in financing nuclear power generation.
- Since coal and oil are internationally traded commodities with established commercial interests, ADB will not finance coal mine development except for captive use by thermal power plants, and oil field development except for marginal and already proven oil fields.
- As a regional knowledge bank, ADB will promote superior knowledge management and dissemination of good practices and lessons learned. ADB will also support advocacy and assistance to DMCs in technology transfer and deployment.
- ADB will collaborate with a range of development partners, including international development agencies, multilateral and bilateral institutions, the private sector, nongovernment organizations, community-based organizations, and philanthropic foundations.
- Specific situations will be identified in each developing member country (DMC) for planning and designing interventions, especially for the Pacific DMCs, given their limited energy resources and unique vulnerability.
- Policy implementation will be monitored by a results framework.
The new policy takes effect immediately, replacing the 1995 energy policy and the 2000 energy policy review.
The new policy has been translated into Chinese, Dari, Khmer, and Russian. The policy is being translated into other key languages and will be posted on adb.org as soon as these become available.
Contacts
Jong-Inn Kim
Principal Energy Specialist, Sustainable Infrastructure Division
Regional and Sustainable Development Department
Woochong Um
Director, Sustainable Infrastructure Division
Regional and Sustainable Development Department
Anil Terway
Co-Chair, Energy Committee
Senior Advisor, concurrently Practice Leader (Energy)
Regional and Sustainable Development Department
S. Chander
Chair, Energy Committee
Principal Director, Office of Information Systems and Technology
References/Resources
Topics 
Top of page