Clean Energy
Supporting energy efficiency measures and renewable energy to decrease the rate of climate change and increase Asia and the Pacific's energy security
| Challenge | Primary energy demand in developing Asia is projected to almost double between 2006 and 2030. This prompts concerns about energy security and increased global warming caused by greenhouse gas (GHG) emissions from increased fossil fuel consumption. |
| Strategy | ADB will increase investments in clean energy—including energy efficiency and renewable energy—across the region to address climate change and energy security. |
| Response | ADB has established numerous clean energy initiatives and created funds to increase knowledge and investments that will help countries achieve energy security and a low-carbon growth path. |
According to the International Energy Agency (IEA), energy consumption in Asia has grown 230% in the last three decades. IEA also estimates 62% of increases in world energy demand between 2000 and 2030 will have come from developing Asia.
Much of the world's new energy and urban infrastructure over the next decades will be built in Asia—locking in the region's GHG emission pattern for another 30 to 50 years. Some $6 trillion for new energy infrastructure will be needed to meet this growing demand.
Future growth must take a low-carbon growth path.
Supporting growth through clean and environmentally sustainable energy
Ensuring energy security and reducing GHG emissions without sacrificing economic growth and living standards is possible but demands the aggressive adoption of new technologies and policies.
ADB's Strategy 2020 identifies energy as a core operational sector for driving poverty reduction, and focuses support on three complementary development agenda: regional integration, inclusive economic growth, and environmentally sustainable growth that addresses climate change.
Our draft Energy Policy 2009 seeks to maximize efficient and renewable energy for all; and support infrastructure projects, energy sector reforms, capacity building, and good governance.
ADB works to aid developing countries transition away from a dependence on inefficient carbonintensive technologies. This growing portfolio of technical and financial support is designed to leapfrog the region to an energy-secure, low-carbon pathway that promotes growth and mitigates climate change.
Energy Efficiency Initiative (EEI). As global energy-related carbon dioxide emissions grow from roughly 28 billion tons in 2006 to an estimated 40 billion tons or more by 2030, Asia's share of emissions is estimated to grow from 30% to 43%—accelerating climate change. Establishing an enabling environment and catalyzing investments in renewable energy and energy efficiency are critical to transitioning the region toward a low-carbon growth trajectory. As its flagship clean energy program, EEI seeks to increase ADB investments in clean energy to $1 billion per year in 2008 to 2010, and achieved $1.7 billion by 2008.
During its initial phase, EEI focused on projects in the People's Republic of China, India, Indonesia, Pakistan, Philippines, and Viet Nam.
For the next phase, from 2009 to 2010, priority countries are Afghanistan, Bangladesh, Cambodia, Lao People's Democratic Republic, Mongolia, and Uzbekistan.
Sustainable Transport Initiative (STI). The fastest increase in energy use in the region has come from the transport sector, making it a key focus area for the mitigation of GHG emissions. STI advocates a fundamental change in transport policy and the "avoid-shift-improve" approach. The initiative supports integrating land use developments with mobility demands to avoid the need to travel; it promotes the shift to energy-efficient modes of transportation, and seeks to improve vehicle and fuel technologies.
STI efforts are progressing to enhance existing mass transit systems and design new systems for Bangkok, Ha Noi, Ho Chi Minh City, Karachi, Lahore, and Manila. STI is also working on pilot urban transport projects in Kathmandu, Manila, and Pune in order to develop sustainable and integrated transport solutions.
Cities Development Initiative for Asia (CDIA). About 75% of global GHG emissions are generated for city consumers. CDIA works with cities, development partners, and the private sector to implement needed investments for sustainable urban development, such as public transport, solid waste methane capture, energy efficiency in buildings, and alternate energy sources.
Energy for All Initiative (EfA). About 1.6 billion people in the region still rely on forms of biomass and inefficient fuels for heating and cooking. The initiative seeks to expand access to reliable and modern energy services for the poor while reducing GHG emissions. EfA supports activities that scale up ADB's investments in projects that provide access to modern and more efficient forms of energy.
ADB has also established the Energy for All Partnership (E4ALL), a regional platform to bring practitioners together to share information in order to replicate and scale up investments in access to energy projects. Its goal is to provide access to safe, clean, affordable modern energy to an additional 100 million people by 2015.
These initiatives are further supported by two funds.
Clean Energy Financing Partnership Facility (CEFPF) and Climate Change Fund (CCF). These funds seek to facilitate greater investments by providing grant resources for knowledge products, technical assistance, and grant components of investment.
CEFPF is comprised of a multi-donor Clean Energy Fund supported by the governments of Australia, Norway, Spain, and Sweden, as well as a single donor Asia Clean Energy Fund (ACEF) supported by the Government of Japan.
CCF was started with an initial capitalization of $40 million from ADB's net income.
ADB has engaged the carbon market to support clean energy projects eligible for the Clean Development Mechanism under the Kyoto Protocol.
Carbon Market Initiative (CMI). Adequate finance and capacity are fundamental obstacles for developing countries trying to adopt clean energy technologies. CMI has mobilized over $150 million to cofinance clean energy projects. It provides technical advice on project development and implementation, documentation, and capacity building and offers support for selling certified emission reductions globally.
Two funds are linked to the broader workings of the CMI.
The Asia Pacific Carbon Fund (APCF). This fund has mobilized more than $151 million in financial resources for clean energy projects through the Carbon Market Initiative.
Future Carbon Fund (FCF). This fund provides upfront cofinancing against future carbon credits to be generated until 2020 for clean energy projects under the Clean Development Mechanism.
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