Sustainable Infrastructure

ADB is making sustainable infrastructure a core element of our poverty reduction program

Challenge	Poorly conceived infrastructure investments today will have negative environmental, economic, and social impacts in the future.
Strategy	ADB’s Strategy 2020 places sustainable development, infrastructure, and the environment at the forefront of our poverty reduction efforts.
Response	ADB is putting sustainable infrastructure at the forefront by promoting infrastructure investment, improving water and sanitation, focusing on clean and renewable energy, driving sustainable transport forward, unleashing the power of the carbon market, and supporting private sector operations.

Demand for urban and rural infrastructure services in Asia and the Pacific is greater than ever. Investment in energy, transportation, communications, urban development, and water and sanitation infrastructure is essential. It can ensure poverty reduction and inclusive growth and contribute to environmentally sustainable growth and regional integration.

Because infrastructure has a long shelf life, however, development must be strategic from the outset. Poorly conceived infrastructure investments today will place additional burden on future generations through negative environmental and social impacts.

Placing sustainable infrastructure at the forefront

ADB is committed to helping the region develop sustainable infrastructure. Our infrastructure investments are fundamental to achieving poverty reduction and inclusive growth. They contribute to environmentally sustainable growth and regional integration.

In urban infrastructure, we focus on water supply, sanitation, waste management, and urban transport. We help countries reduce air and water pollution, develop cleaner modes of transport, improve systems for solid waste management, and reduce urban waste. In rural infrastructure, we invest in areas such as irrigation and integrated water resources management, and rural electrification.

Promoting infrastructure investment

Established in 2008, ADB's Cities Development Initiative for Asia (CDIA) is investing in public transport, solid waste/methane capture, energy efficiency in buildings, alternate energy sources, and eco-industrial estates/systems.

Through development partners and partnerships with the private sector, it is linking cities to the financing resources they need to design investments, construct them, and build capacity to operate them on a sustainable basis.

CDIA has already established partnerships with nine city governments across Asia, and is moving forward in consultations with 25 others.

Working toward water security for all

About 500 million people across Asia and the Pacific lack access to safe drinking water, and nearly 1.8 billion people have inadequate sanitation facilities. Economic growth, population pressures, and increased urbanization combine to increase water use and pollution. And climate change is adding to the challenge.

Improved water management and increases in water and sanitation projects are needed to provide water security for all.

ADB's Water Financing Program (WFP) sets specific targets for increasing the number of people in the Asia and Pacific region with access to reliable and affordable water services for safe water, sanitation, and productive livelihoods. It is helping reduce disaster risks and introduce integrated water resources management in 25 river basins. The WFP has recorded significant success since 2006 and has a substantial pipeline of new investments. To date, WFP has remained steadfast in its target to benefit 300 million people in the region.

Focusing on clean and renewable energy

Energy consumption in Asia has grown 230% in the last three decades. Correspondingly, Asia's share of global greenhouse gas (GHG) emissions has also risen.

This prompts concern about energy security and increased global warming. To address this, ADB has increased investments in clean energy development including energy efficiency and energy security.

Our Energy Efficiency Initiative (EEI) was launched in 2005 to expand ADB's investments in energy efficiency projects to $1 billion a year. By 2008, clean energy investments rose to $1.7 billion. EEI efforts began in six priority countries: People's Republic of China (PRC), India, Indonesia, Pakistan, Philippines, and Viet Nam. In 2008, six more were added: Afghanistan, Bangladesh, Cambodia, Lao People's Democratic Republic, Mongolia, and Uzbekistan.

Under our Energy for All initiative, we are helping countries expand access to modern and efficient energy services while reducing GHG emissions.

Driving sustainable transport ahead

Asia's vehicle fleets are doubling every 5 to 7 years in some cities and growth of international trade has seen dramatic increases in freight movements across the region, both placing a considerable strain on the available infrastructure. Improved management of existing infrastructure is required, together with targeted and integrated new infrastructure investments.

ADB's Sustainable Transport Initiative (STI) calls for a fundamental shift in transport policy to manage demand for travel to the available supply, advocating the “avoid-shift-improve” approach. The initiative supports integrating land use developments with mobility needs, avoiding the need for travel. It promotes the shift to energy-efficient modes of transportation, and seeks to improve vehicle and fuel technologies. STI will promote sustainable infrastructure to support inclusive economic growth, environmentally sustainable development, and energy security.

Unleashing the power of the carbon market

Insufficient expenditure for infrastructure is undermining economic growth and poverty reduction efforts in some Asian countries. Many projects are unable to take off because of financing constraints.

The carbon market, and particularly the Clean Development Mechanism (CDM) of the Kyoto Protocol, offer much-needed financing to sustainable infrastructure projects. Under CDM, projects in developing countries that reduce GHG emissions can receive “carbon credits” that can be traded for additional revenues to help close up-front financing gap.

Launched in 2006, ADB's Carbon Market Initiative (CMI) is increasing the number of clean energy projects in the region. CMI provides upfront financing, technical assistance, and marketing support to worthy projects eligible under the CDM. CMI supports projects in countries across Asia, including the PRC, India, Kyrgyz Republic, Mongolia, and Pakistan.

To expand CMI services beyond Kyoto Protocol commitments ADB has launched the Future Carbon Fund. The fund provides up-front financing for ADB-supported projects that will continue to generate carbon credits after 2012.

Supporting private sector operations

In parallel to these and future initiatives, ADB will continue to scale up support for sustainable infrastructure through our Private Sector Operations Department (PSOD). PSOD focuses on direct investments, as well as funds investments, to fill the early-stage financial and skills gaps of developing country project managers.