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"Historical Trends and Outlook of Energy in Asia and the Pacific"

Closing Remarks by
C. Lawrence Greenwood, Jr.
Vice President, Operations 2
Asian Development Bank

At the ADB and ADB Institute Joint Seminar

3 November 2009
Tokyo, Japan

I would like to thank all of you for having taken the time to be with us today. I would also like to congratulate the authors of these two studies which, taken together, offer a wealth of information and some very valuable insights on the region's energy situation. I'm sure that policymakers and stakeholders, both inside and outside of the region, will find these studies very useful as they plan future courses of action.

We are all aware that the greatest energy challenge facing the world today is climate change resulting from greenhouse gas emissions, and the damage it brings to people and the environment. The response to climate change has focused on energy as a key sector, and Asia and the Pacific as a strategic battleground.

As Energy Outlook in Asia and the Pacific points out, the region is likely to see a 2.4% yearly increase in energy demand until 2030 - well above the expected world average. On first glance, this may be taken as assurance that Asia's explosive growth will continue, which would account for the increase in energy demand. However, this push for greater development will largely be met with fossil fuels, including oil, on which Asia has increasingly come to depend. The Energy Outlook study notes that this dependence will continue to grow. By 2030, the net oil imports of South and Southeast Asia will be equal to that of the developed world. The oil needs of East Asia, of course, are projected to be immense.

This dependence on oil makes Asia's energy security uncertain. The engines of industry which have powered Asia may well fall silent due to the volatility of global oil prices. The nearly one billion people in Asia without access to modern energy are also in need of reliable, affordable power to rise above persistent energy poverty. I believe it is therefore critical for Asia and the Pacific to seek low-carbon path to meet growing energy demand in socially, economically and environmentally sustainable way. Cooperation among the economies is needed to enhance energy security and sustainable development in the region. This can be done through sharing policy information, facilitating energy trade and conducting joint energy projects, This approach would allow all countries to take advantage of the range of energy resources, and to engage in cross border energy trading for mutual benefit and stronger cooperative ties. The advances made in clean energy technology make it all the more feasible for nations to tap their own renewable resources and link together in an advanced "smart" power grid that stretches across borders.

Transitioning from oil dependency and onto a low carbon path allows Asia and the Pacific to meet its needs and free itself of the risks of dependence. These studies have mapped out the future we can expect, it is up to us to either bring it about or change it for the better.