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ADB's energy policy aims to help developing member countries (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 is 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 ease growth in fossil fuel demand and upward pressure on energy prices, improve energy security, and 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.