|
Fellow speakers, honored guests, ladies and gentlemen, good morning and welcome to the second day of the Asia Clean Energy Forum.
With attendance and participation at higher levels than ever before, the discussion of clean energy has been separated into four specific tracks - renewables, efficiency, access to energy and sustainable cities and transportation systems. Taken all together, these discussions map out a picture of the region's development in years to come as we head towards a low carbon future.
But the infrastructure investments that will form the backbone of this transformation face a challenging environment. Despite a clear need for trillions of dollars worth of infrastructure to support continued growth, public sector investment in infrastructure is lagging in the region, with the ratio of investment to Gross Domestic Product inadequate for continued growth. We are seeing this very clearly in the Energy sector, as old and often poorly maintained, infrastructure is overloaded. For example, the economic growth of many countries in our region have made it an economic marvel. Yet its major cities, not to mention its countryside, are afflicted by chronic electrical power outages as an aging grid falters under the power demands of 21st century industries.
Part of ADB's work is to help meet that need. Another, equally critical part of our work is to encourage and support Clean Energy, in order that what infrastructure is built will set the region on a low carbon path. Clean Energy is already a high investment priority for the Bank, and will remain so in the foreseeable future.
But ADB recognizes that the private sector has a leading role to play in infrastructure investment and that such investment must be encouraged with national and regional policies put in place to improve incentives and streamline the engagement process. ADB's Private Sector Operations Department has brokered major private-public partnerships in water and energy sectors, both key focus areas for clean energy and sustainable development. Our focus on providing guarantees and other financing risk management instruments has also been successful.
In a normal time, this support would go a long way to encouraging investment and leveraging support. Yet, we are under the effects of the global financial crisis, and its shockwaves are still rippling through Asian economies. Thankfully, the steps the Asia Pacific took after the 1997 crisis have protected us from the worst, but we are hardly untouched.
In this environment, with Developing Member Countries facing deep uncertainty and banks tightening their lending in fear of further shocks to the market, the development institutions must lead by example. ADB is prepared to turn to "partial risk guarantees" and "first loss funds" in order to restore investor confidence and stimulate infrastructure investment.
Our existing programs, among them, the Carbon Market Initiative and Asia-Pacific Carbon Fund aid in providing critical upfront financing for the adoption of clean energy technologies.
On an even larger scale, our Asian Infrastructure Financing Initiative is expanding to support $5.5 billion in co-financing agreements. We are also upping our involvement with major public-private partnership groups, such as the Private Infrastructure Development Group to break down barriers in our DMCs that hamper the investment environment.
That is not to say we are ignoring the essential lessons of PPP programs. Transparency at all levels and extensive capacity building in the public sector are needed to ensure successful implementation and a competitive environment. ADB's support to its DMCs will not neglect these key areas. At this time, the critical component is leadership - it is needed to pull together multi-sectoral support and get key infrastructure projects off the ground. As the world responds to the economic crisis, it may seem almost necessary to put off thinking about climate change and clean energy. Yet all data points to the inescapable conclusion that our investments - or lack of them - today, will decide our future. If we choose to continue business as usual, the possibility is high that we will face a second economic crisis as climate change's effects sweep the region. But if we take this opportunity to transform our growth to be powered by clean energy and supported by a low carbon infrastructure, we secure a better tomorrow for us all.
Let me now cede the floor to our panelists, who will share their in-depth experience on this subject.
Thank you.