Welcome Remarks at the Asia-Pacific Dialogue on Clean Energy Governance, Policy, Law and Regulation: Attaining Sustainable Energy Access for All – Stephen P. Groff

Speech | 04 June 2012
Read time: 7 mins

SHARE THIS PAGE

Welcome Remarks by ADB Vice-President Stephen P. Groff on 4 June 2012 at the ADB Headquarters, Manila, Philippines.

Introduction

Honorable guests, colleagues, ladies and gentlemen: welcome to the third Asia Pacific Dialogue on Clean Energy Governance, Policy, Law and Regulation. To begin, let me thank a number of partners for the support that has made this event possible, including USAID, the International Copper Association, UN-ESCAP, DANIDA, the Sustainable Energy Regulatory Network, and GE.

2012 is the International Year of Sustainable Energy Access for All. ADB is a regional partner in the UN's Global Campaign on Sustainable Energy for All – a campaign which includes the idea of establishing a goal for energy access in the post-MDG Sustainable Development Goals, and presenting this at the upcoming Rio +20 Conference.

Hence, this year the Dialogue is being hosted together with ADB's Energy for All Program to consider the policy, law and regulation necessary to achieve Sustainable Energy Access for All. This is the first event to consider these issues in the Asia and Pacific context and – based on the support and participation here today – it clearly features prominently on the agenda of many policy-makers, regulators, private sector players, and civil society in the region.

This topic is important for ADB, because it focuses on the nexus of the three pillars of ADB's Energy Policy, which are:

  • maximizing energy access,
  • promoting energy efficiency and renewable energy, and
  • promoting sector governance and capacity.

My remarks this morning address these three energy challenges for Asia as well as ADB's role in contributing to solutions.

Asia and the Pacific's Energy Challenges

Asia and the Pacific needs energy to fuel economic development and to ensure all people have secure access to affordable energy to promote sustainable livelihoods. In doing so, we face fundamental challenges in the energy system. We need to provide energy access to those who have none. For those who have energy access, we need to ensure it is sustainable. We also need to establish the enabling policy and regulatory frameworks to promote public and private sector investments in expanding access and clean energy. With this in mind, I have three basic messages.

First, Asia still needs to attain energy access for the energy poor. Second, the region needs to transform its energy systems to clean energy. And lastly, Asian countries need the right governance, policy and regulatory frameworks to provide sustainable energy access

On attaining energy access for the energy poor: the Asia-Pacific region has had some incredible success stories in terms of achieving universal or near universal energy access for vast populations: China, Thailand, Viet Nam, Malaysia, and Bhutan are a few examples. But, about 700 million people in the region still have no access to electricity and about 85% of those live in rural areas.

1.9 billion people in the region, nearly half of Asia's population (of 4.1 billion), have no access to modern cooking fuels and facilities, instead they must burn wood, coal, charcoal, or kerosene, which can lead to health and respiratory problems, as well as premature deaths from inhaling smoke; and accidental fires and injuries from burning kerosene. It also generates unnecessary carbon dioxide.

Current trends show that without policy, regulatory and financing changes, even in 2030, about 350 million people will have no access, and 1.6 billion people will have no clean cooking facilities.

My second message is that Asia needs to transform its energy systems to clean energy.

Asia's energy demand is projected to almost double by 2030. However, under current trends, fossil fuels will be the source that meets this increasing demand making Asia responsible for nearly half of the world's carbon emissions by 2030.

This trend will lead the world toward continued emissions increases and climate change, resulting in disastrous consequences for many Asian countries, including mass migration, increased floods, typhoons, and other extreme weather events.

Moreover, while providing energy access for all from fossil fuels is not itself expected to immediately contribute much to global carbon emissions, once people obtain access to energy and incomes improve, their energy consumption is likely to increase, with a consequent magnification of the demand for fossil fuel-based energy.

Asia needs energy, but there is an urgent need for innovative ways to provide it while at the same time reducing greenhouse gas emissions.

Renewable energy and energy efficiency can make key contributions to maximizing energy access and transforming energy systems to clean energy, because many of the contributions to providing rural access lie in increasing efficiency, and providing off-grid distributed renewable energy solutions.

My third and final message is that Asian countries need the right governance, policy and regulatory frameworks to provide sustainable energy access.

To provide universal energy access, Asia needs vast amounts of finance and investment: the International Energy Agency estimates that 12 billion dollars a year are needed in the region until 2030. And Asia needs a combination of public sector financing and the right incentives to drive a major scale-up in private sector investment in energy access.

Similarly, on an even larger scale, incredible amounts of finance for clean energy investments are also needed over the next 20-40 years – between 7 and 9 trillion dollars to 2030. Again, while public sector resources will provide some of this financing, innovative new business models that incentivize the private sector to invest are critical.

While the scale of finance needed for maximizing access for all and providing clean energy investment is vast, finance alone – without the right governance structures and enabling legal and regulatory frameworks – will likely not deliver the actual investments and infrastructure to satisfy demand.

Additionally, there are policy and regulatory barriers to providing sustainable access, such as limitations on investments by small private sector power providers. Policy and regulatory frameworks need to establish clear national access targets, appropriate tax incentives, standardized policy frameworks for small-scale producers, and incentives for off-grid and renewable provision.

The public sector and the private sector need the right policy and regulatory frameworks to secure public funding and to incentivize private sector investment for sustainable access. Strong public sector institutions are also required to manage the vast financial resources necessary while ensuring that those finances are spent for intended purposes.

ADB's Role in Confronting Asia's Energy Challenges

ADB launched its Energy for All Initiative in 2008 to increase access to modern energy for the region's poor through game-changing pilot-projects. Since the start of Energy for All, ADB has spent 2.8 billion dollars on energy access projects, with a focus on clean and renewable energy resources. In 2011 alone, ADB spent 1 billion dollars on projects designed to provide access to 10 million more people. ADB is now working with a number of partners through its Energy for All Partnership to provide access to modern forms of energy to 100 million people by 2015.

For example, we are working with the Greater Mekong Sub-region on the efficient utilization of biomass for bioenergy, including the installation of biogas systems in rural households. This was developed with an investment of 4.6 million dollars, allowing the supply of 500 bio-digesters, 75,000 improved cookstoves, as well as training for farmers, service providers and government officials on the assistance scheme.

In the Philippines, ADB is working with a micro-finance institution to deploy solar lanterns and enable local entrepreneurship. Small entrepreneurs can sign up as micro-retailers to rent out solar lanterns to local households at minimal cost, instead of needing capital to purchase solar lanterns on a wholesale basis. These fees finance a common fund for the operation and maintenance of the solar lanterns.

ADB has positioned itself as a key regional partner by actively supporting the UN's Global Campaign of "universal access to clean affordable energy by 2030" and is also supporting partnerships such as the Global Alliance for Clean Cookstoves. On the policy and regulatory reform side, ADB has commissioned work on power sector reform in the Philippines, Samoa, Tonga, Pakistan and Sri Lanka to name a few. ADB has also supported studies on enhancing effective energy regulation in Southeast Asia and the Pacific, which includes components on the effectiveness of policy and regulations for the poor.

ADB has also produced many knowledge products on energy access, policy, and regulation, including the publication that is the subject of today's meeting: Attaining Access for All: Pro-Poor Policy and Regulation for Water and Energy Services.

Through these initiatives, ADB has enabled key stakeholders to enhance their capacity in policy formulation as well as in the implementation of laws and regulations for sustainable energy access.

Conclusion

At last year's Dialogue, policy-makers and regulators developed a Regional Plan of Action on Clean Energy Governance, Policy and Regulation.

Policy-makers and regulators, supported by development partners need to do more for sustainable access to achieve the international goal of universal access by 2030. With this in mind, I ask you to add to last year's action plan by considering and developing appropriate strategies for removing policy and regulatory barriers and establishing the right incentives for expanding access. I further challenge you over the coming days to consolidate these strategies into an outcome document that could contribute to the global and regional energy access challenge.

Meeting the goal of maximizing sustainable access will require the right policy and regulatory frameworks. ADB looks forward to working with you to determine, design, and implement that policy and regulatory mix.

I wish you a good and productive meeting.

Thank you.

Speaker

SHARE THIS PAGE
Subjects

Latest Speeches

Sustainable Development and Green Finance - Ursula Schaefer-Preuss

Speech | 15 February 2011
Read time: 8 mins

SHARE THIS PAGE

Keynote address by ADB Vice President Ursula Schaefer-Preuss at the ChosunBiz Green Finance Forum on February 15, 2011 in Seoul, Republic of Korea

I. Introduction

Former Prime Minister Han Seung-soo, distinguished guests, ladies and gentlemen; good morning. On behalf of the Asian Development Bank, I would like to thank ChosunBiz and its Chairman, Kang Hyosang, for inviting me to participate in this Green Finance Forum. It provides a tremendous opportunity to share knowledge and ideas about financing green growth and reshaping the sustainable development paradigm. Both are matters of great urgency and importance.

ADB has been helping eradicate poverty in Asia and the Pacific for more than 40 years by promoting sustainable development. Along the way, our developing member countries have faced many challenges, which we have helped overcome. We are now facing the most far-reaching challenge to ever confront the human race: climate change.

II. Challenges to Sustainability

With the most populous and dynamic economies in the world, the Asia and Pacific region is at the center of the global economic and environmental challenges of our time.

With each passing day, Asia's contributions to the climate change dilemma grow. The region is simultaneously becoming more vulnerable to weather extremes, rising sea levels, and other climate change-related phenomena. Poor communities, and particularly women and children, will continue to be hardest hit. Unless steps are taken today, the share of global CO2 emissions from developing countries in Asia could rise to more than 40 percent of the world's total in the next decade. This would quickly make our region the main driver of global climate change. Worsening this situation, our cities are growing too quickly, and our transport systems are unsustainable. Asia's cities will swell with an additional 1.1 billion people in the next 20 years. This growth will present already struggling local governments with the massive challenge of coping with even more air and water pollution, lack of potable water, slums, and traffic congestion.

Access to affordable and sustainable energy is an important element for poverty reduction. More than 800 million people in Asia and the Pacific still have no access to electricity. About 1.8 billion people still burn wood, dung, and crop waste for cooking and heating. This persistent energy poverty has hampered efforts to reduce poverty and meet the Millennium Development Goals. Access to modern, cleaner energy is essential to cut indoor air pollution; improve infant and maternal health, education and agriculture; and ensure inclusive, sustainable development.

Clearly, our region will be a key actor in the ultimate success—or failure—of sustainable development initiatives. The message is simple: as Asia goes, so goes the world.

III. Green Growth—The "New" Sustainable Development

Distinguished guests, ladies and gentlemen: I would like to take you back to 1987, when the Brundtland Commission defined sustainable development as "development that meets the needs of the present without compromising the ability of future generations to meet their own needs."

But the recent crisis related to 3Fs — finance, food, and fuel — has compelled us to rethink the way we are pursuing sustainable development. Combining the 3Fs with climate change, the idea of green growth emerged. Essentially, it is about embarking on a development path that will securely and sustainably promote human well-being. Critically, it should not jeopardize the environment or result in environmental risks and ecological scarcities. At its most basic, the green growth paradigm invokes us to prioritize endeavors that use less materials, less energy, less water, and less land— while emitting fewer greenhouse gases.

Though most of Asia is coming out of the 3F crisis, this should not give us reason for complacency. On the contrary, since climate change is something that will be with us for well into the future, we should be doing much more to achieve green growth. In fact, with Asia and the Pacific poised to become the greatest source of greenhouse gas emissions, we have a major role in climate change solutions. And we know we can learn much from the Republic of Korea.

The Republic of Korea has been a key leader in the green growth revolution and sets an excellent example for the international community. Your commitment to foster and promote knowledge through the Global Green Growth Institute is admirable. Of all countries, the Republic of Korea remains at the forefront of green growth policy. The "Green New Deal," which is set to invest about $44 billion in green initiatives by 2013, will provide tremendous stimulus to your national green industries.

IV. Green Finance

Distinguished guests, ladies and gentlemen: At ADB, we understand green finance as an investment or lending program that takes into account environmental impact. As a regional development bank, we have been practicing this for many years by establishing environmental and social safeguards for our investments.

What is new is that we are now financing green growth on a more massive scale. ADB's adoption in 2010 of its climate change strategic priorities provided the linchpin for this. Among others, greater investments in clean energy, sustainable transport, and urban development are reducing greenhouse gas emissions while improving quality of life. And our support for building climate resilience in the water and agriculture sectors is decreasing the risk of food crisis.

Our investments in clean energy have consistently risen, reaching $1.7 billion in 2010. This reflects the huge demand from developing Asia—much more than the public sector could every possibly address alone. From the perspective of a regional development bank, we see many opportunities for green financing.

The needs for the region over the coming decade are staggering. About two thirds of the projected infrastructure investment of up to $8 trillion will be for new Concerted action and partnerships between the public and private sectors are absolutely critical if we are to meet these massive financing needs. infrastructure. Massive investment in clean and renewable energy is also needed, as well as in wastewater treatment and sanitation, and sustainable transport. Climate change mitigation costs in developing countries are predicted to grow to well over $100 billion per year by 2030. Adaptation cost estimates for Asia and the Pacific are in the order of $40 billion annually.

The concessional funds from the public sector, which come from governments through bilateral and/or multilateral development agencies, need to be optimized.

This presents a promising opportunity to design, build, and operate infrastructure on the principle of green growth using green finance. What needs to be urgently resolved is how to best use limited public sector funds to leverage far more private capital in low-carbon and climate adaptation investments Financing partnerships are critical at both the technology innovation and deployment stages. For the innovation stage, public funding is required for early research and development, and to stimulate the movement of venture capital towards climate change and clean energy investments. Grant funding may also be used as seed money. These efforts will catalyze Asian-based start-up companies to develop or adapt technologies to local conditions. For the technology deployment phase, public funding could be used to help shoulder the initial project development costs.

V. ADB's Unique Role—Change Agent

Distinguished guests, ladies and gentlemen: As Asia assumes a larger role on the world stage, we must also assume our responsibility for addressing pressing global environmental problems. Green growth interventions must address both climate change mitigation and adaptation, while improving the environment and reducing poverty.

I am pleased to inform you that ADB has an array of projects that makes the low-carbon, green choice more feasible for developing countries. This could be through "buying down" the high upfront costs of green technologies. Or helping create the policies that will provide to the private sector incentives and accelerate true "green businesses".

Green finance can make this happen faster.

For example, we have the Asia Solar Energy Initiative that aims to catalyze greater levels of solar energy investment, and remove the barriers to commercial-scale deployment. The Quantum Leap in Wind Initiative promotes the deployment of wind power in the region.

ADB is also striving to move upstream in the technology development process. We are working to "open the floodgates" and catalyze the resources and experience of the private sector through innovative financing approaches. For instance, The Asia Climate Change and Clean Venture Initiative will use equity infusions to increase the investments of venture capital funds that can help clean technology companies in our developing countries to flourish.

As these examples show, ADB's key role in green finance is to use its limited public sector funds to leverage private capital. Partnerships will continue to be a key component of our green finance approaches. Multilateral and bilateral agencies, governments, the private sector, civil society, and local communities must all work together to disseminate more technologies, more quickly, to more people.

Numerous opportunities exist for the Republic of Korea and ADB to partner on green finance initiatives.

VI. Conclusion

Distinguished guests, ladies and gentlemen: The green growth presents an opportunity to generate new, win-win situations for addressing climate change, gaining economic benefits, and reducing poverty. The Republic of Korea and ADB could use this opportunity to explore partnerships in green finance. One option could be to encourage private capital flows in clean energy and sustainable transport.

As the United Nations Framework Convention on Climate Change once said about green growth, "the most convincing argument is demonstrating that it can be done." The Republic of Korea is providing an outstanding example of this. We must not only admire you, but also follow your lead. We must not only observe you, but also partner with you. Most importantly, we must not only think about green finance, but make it a reality by working together using our comparative advantages.

Speaker

    Ursula
    Schaefer-Preuss, Ursula
    Former Vice-President, Knowledge Management and Sustainable Development
SHARE THIS PAGE
Subjects

Latest Speeches

The Solar Energy Imperative in the Asia-Pacific Region - Haruhiko Kuroda

Speech | 01 December 2010
Read time: 5 mins

SHARE THIS PAGE

Welcome address by ADB President Haruhiko Kuroda at the Second Meeting of the Asia Solar Energy Forum on December 1, 2010 in Tokyo, Japan

I. Introduction

Your Excellencies, distinguished delegates, ladies and gentlemen;

It is my pleasure to welcome you all to this Second Meeting of the Asia Solar Energy Forum. First, let me thank our co-host for this event, the Government of Japan, and our other partners: the International Energy Agency, Renewable Energy and Energy Efficiency Partnership, and the United Nations Industrial Organization.

I am very pleased that we are gathered today to explore prospects for an unconventional energy source for Asia. Our region is very much exploring alternate development paths, where renewable energy plays a visible, if not a dominant, role.

II. Signs of the Times: Post-crisis Developing Asia and the Hunger for Energy

This time last year the economic prospects of the Asia and Pacific region were uncertain. Today, we expect developing Asia to attain a healthy 8.2% growth rate in 2010, followed by lower but still robust growth of 7.3% in 2011. But there are still challenges to overcome. The Asia and Pacific region still lags far behind industrial economies in per capita income and remains home to two-thirds of the world's poor. Sustaining post-crisis growth in the long-run is critical for reducing poverty and raising living standards. To achieve this, developing Asian economies need to improve their productive capacities.

Inevitably, this will increase demand for energy. The International Energy Agency expects primary energy demand in the region to double between 2006 and 2030. Meeting this energy demand mainly through traditional fossil fuel sources is neither environmentally sustainable nor economically desirable. Therefore, Asian countries will need to aim to maintain economic progress and improve energy security, while simultaneously charting a new low-carbon development path. The solution lies in making cost effective investments in clean energy technologies and practices.

III. The Solar Energy Imperative

Solar photovoltaics (PV) are among the faster growing generation technologies worldwide. These presently generate electricity in over 100 countries. At the same time, "concentrating solar power technology" is rapidly being adopted, its generating capacity nearly doubling in the last five years.

The wider adoption of these technologies is the result of declining costs, which was made possible by rapid technological advances, larger scales of production, and lower production costs including in Asia. The increasing demand from national solar promotion programs has also been vital. Some of the largest emerging programs are in Asia — People's Republic of China's Golden Sun Program, India's National Solar Mission, and Thailand's Small Power Producer scheme, to name a few.

It is only natural that Asia should play a prominent role in the growth of the solar energy industry. The unfilled energy demand in the region offers exponential growth opportunities for the technology. Furthermore, good sunlight and land suitable for solar power generation are abundant. The industry will generate employment from indigenous solar manufacturing and ancillary services. As solar power supply can be decentralized, it will facilitate the development of rural and hard-to-reach areas. Ultimately, realizing the region's solar energy potential will help trigger a wave of innovation, efficiency improvements, and scale that can accelerate the diffusion of solar energy technologies and thus help it achieve grid parity with the other sources of energy worldwide.

IV. ADB's Pioneering Response: the Asia Solar Energy Initiative

Lowering generation costs to the point solar energy is at least equal cost to other means of generating electricity is precisely the target of ADB's new Asia Solar Energy Initiative. The Initiative aims to create a virtuous cycle of solar energy investments in the region, so that ADB's developing member countries can benefit fully from this clean and renewable energy resource. It integrates three components that we believe are keys to catalyzing solar energy development in Asia and the Pacific.

First, there is a project development component aiming to establish 3,000 megawatts of solar power in the region. ADB has already participated in the financial close of two private-sector led solar photovoltaic electricity generation projects in central Thailand earlier this year. And our pipeline of solar energy projects for the next 3 years continues to grow. ADB itself is leading by example, currently installing about 370 kilowatts of solar PV capacity on the roof of our headquarters in Manila. Through this project, we are demonstrating a build-operate-transfer business model that can be readily replicated and scaled-up across the region.

The second component on innovative financing will help facilitate project development. We are proposing to establish the Asia Accelerated Solar Energy Development Fund. This fund will help bring down the initial high costs of technology adoption, and support innovative mechanisms to encourage private sector financing. Specifically, the fund will help mitigate the risks related to prospective solar energy projects, and provide power generation incentives — both are not readily available from existing funds. To build the resources of this pioneering fund, ADB has already initiated talks with governments, both in Asia and outside, and with the private sector.

The third component showcases knowledge through the Asia Solar Energy Forum. The Forum is envisioned to be the premier platform in the region for sharing solar energy knowledge and facilitate technical capacity development and policy and regulatory framework development. It will help bridge the gap between suppliers and developers of solar energy in the public and private sectors, and address barriers to trade in solar and smart grid applications.

V. Conclusion: Expectations from the 2nd Meeting of ASEF

In the coming two days, you will learn more about technology trends, production capacities, market barriers and suggestions for breaking them, solar energy end-use, regulations, and smart grids. As recommended in our first meeting in Manila, you will also be presented a proposal to transform the Asia Solar Energy Forum from an ADB-sponsored platform that it is today to a self-sustaining, not-for-profit society, owned and administered by its members. It is hoped that it will provide high-quality inputs for effective policy making and successful financing of solar power development in your countries. We hope that you will leave this meeting with clear good ideas for — and participating in — solar energy development in the Asia-Pacific region.

We look forward to working with you for the sustainable development of Asia and Pacific, powered by clean energy technologies. Thank you very much. I wish you all a pleasant morning and a fruitful two days.

Speaker

SHARE THIS PAGE
Subjects

Latest Speeches

The Call to Action: Moving Forward with Solar Energy in Asia and the Pacific - Lakshmi Venkatachalam

Speech | 02 December 2010
Read time: 8 mins

SHARE THIS PAGE

Closing remarks by ADB Vice President Lakshmi Venkatachalam at the Second Meeting of the Asia Solar Energy Forum on December 2, 2010 in Tokyo, Japan

I. Thank You and Congratulations

Your Excellencies, distinguished delegates, ladies and gentlemen;

On behalf of the Government of Japan, our co-hosts for this event, and our other partners, the International Energy Agency, Renewable Energy and Energy Efficiency Partnership, and the United Nations Industrial Organization, I would like to thank you all for your active participation in this Second Meeting of the Asia Solar Energy Forum. I would also like to congratulate everyone on the significant progress made toward finally establishing the Asia Solar Energy Forum as an independent, not-for-profit knowledge management platform.

II. Introduction

Today, we are witnessing what can truly be described as a "clean energy surge" in Asia, where several countries are vying to gain recognition in terms of their "renewable energy country attractiveness index". Japan's solar market is expected to grow at a very healthy pace, thanks to the government's climate policies, including a feed-in tariff subsidy for households. This is expected to see a four-fold growth in Japan's solar panel market by 2020 from a level of $5.8 billion in 2009. Likewise, the Chinese solar industry is also becoming of great importance in the "cleantech" global marketplace, with its investment across the whole clean technology sector reaching $13.5 billion in the third quarter of 2010. Investors are looking at Asia as the new El Dorado for returns. For an investment theme that did not exist 10 years ago, cleantech is already showing the potential to deliver successful returns.

III. Key messages from the 2nd Meeting of ASEF and the Call to Action

At the start of this session, you heard from Anil a summary of the past two days' events. Clearly we have covered a lot of ground, from the various discussions in both our formal sessions and informal conversations. Plus, we crossed an important milestone today. Yesterday, we had no reliable mechanism to disseminate lessons learned and best practices on solar energy and stable grid development in Asia and the Pacific. We had no consistent venue to facilitate technology transfer, to inform policy and decision-making, and to assimilate suitable tools for project appraisal and financing in the region. Who would we ask for an inventory of solar energy projects in our part of the world? Today, we have the Asia Solar Energy Forum. Our decision to establish the forum as a not-for-profit society secures us.

One advantage of institutionalizing the Asia Solar Energy Forum is that it enables Asia and the Pacific to be a living laboratory for many of the frontier and frontline solar energy systems and solutions presented over these two days. The forum can be a venue for the region to synthesize and analyze the various technology trends, market breakthroughs, measurement and modeling techniques, and smart grid and storage solutions piloted and scaled-up in the region. The region and the world can then learn from these lessons and ultimately formulate a more effective and efficient solar development program that will benefit all of us. These lessons can guide future project development efforts. So we encourage you to take full advantage of and enroll in such an informed community before leaving Tokyo.

The society may be our biggest souvenir from this forum but not our only takeaway as we return to our respective bases of work. The last two days have also given us the broad spectrum of entry points to participate in solar energy development in Asia and the Pacific. The four solar energy showcases, from India, China, Thailand and Uzbekistan, described by ADB in this forum, are only a taste of a much larger pie. The untapped potential for solar resources in the region is considerable and the availability of large tracts of land adds to the feasibility of pursuing solar energy projects in the region. Running parallel to the untapped resources is an untapped market. Today, about 900 million people in our region continue to suffer without much-needed access to energy. By 2030, primary energy demand is expected to double, driven by rapid economic growth and increased economic activities, population growth and urbanization, higher living standards and greater consumption by households.

Recognizing this potential, ADB has therefore set the ambitious target of assisting in identifying, developing and implementing 3,000 MW of solar generation projects for the next three years in Asia and the Pacific under the Asia Solar Energy Initiative. If any of you have a prospective solar energy project in Asia and the Pacific, and would like to engage ADB in seeing it come to fruition, please approach us. You've met many of my colleagues during this forum, and they can be your first points of contact in moving forward with your prospective programs with ADB.

Fortuitously, many of our developing member countries are making it easier for developers to penetrate the untapped solar energy generation market. President Kuroda yesterday mentioned some of the national solar promotion programs in the region. Today, I would like to mention the various renewable energy promotion policies being set in place nationally. Various countries in the region are making available a broad menu of institutional incentives, such as feed-in tariffs; capital subsidies, grants and rebates; investment or other tax credits; energy taxes; and public investments through various financing modalities. These are helping to create the enabling environment at the national level for project developers to rapidly advance the development of renewable energy, including solar energy, applications.

Today, the commercial viability of solar energy over the longer term, as compared to other forms of competing renewable energy, rests largely on the expectation that the cost of solar energy will approach grid parity within a decade or so. In the meantime, the sector will, of necessity, have to rely on renewable energy promotion programs and incentives being instituted through policy in the region. Given the nascent stage of the solar power sector, it is my belief that if solar power generation is to be really ramped up in the region, some amount of policy-driven hand-holding of this sector, through a consistent level of incentives, as listed above, will indeed be needed for some time to come in order to continue to attract investments. If such policy-driven incentives are abruptly withdrawn, there is strong a risk of investments in this sector migrating to other forms of renewable energy, such as hydro, which at the moment are generally more viable. This is a challenge and a risk that the solar power sector faces, and we must, along with the governments in the region, ensure that this first phase of solar technology development, up until it can stand on its feet, is well-supported through incentives and directed programs.

Very soon, ADB will make available resources from the Asia Accelerated Solar Energy Development Fund under the Asia Solar Energy Initiative to help facilitate the project development process. This fund will encourage private sector investments by keeping transaction and opportunity costs low for the sector, and by offering risk mitigation and incentive generation products to promote solar energy development that is not readily available from other general purpose funds. This ground-breaking solar fund will be structured as a multidonor trust fund available to support projects in all developing member countries. It will be open to support and contributions from government agencies, international organizations, bilateral funding agencies, the private sector, and civil society organizations. Thus, we look forward to seeing all of you as partners in the Asia Accelerated Solar Energy Development Fund, where your minimal resource contributions can leverage into major industry gains.

IV. ADB's Involvement in Private Sector Solar Power Generation

Let me now take this opportunity, in my capacity as the Vice President responsible for ADB's private sector operation, to briefly update you on ADB's engagement with the private sector in the solar power generation sector in some of our member countries. During 2010, we have provided financial support for the development of three solar power generation plants in Thailand, aggregating over 100 MW. We are also currently working closely with the Government of India, in line with its National Solar Mission, in developing a Solar Power Generation Guarantee Facility which is expected to mitigate risks of lending to solar power projects and extend loan tenors. Up to 100 MW of generation capacity is expected to be supported by this initiative. We are, simultaneously, looking at several discrete grid-connected and off-grid projects for direct assistance, and also providing technical assistance for the development of large scale solar parks in two states in the country. To summarize, in congruence with the objectives of ADB as a whole, its Private Sector Operations Department has also set for itself a very lofty target for supporting the solar power generation sector in our region, and we look forward to support from stakeholders such as you in fulfilling our target.

V. Conclusion

At the end of two days, a path has been laid out before us. It leads to a mature solar energy industry and market in Asia and the Pacific. But treading it will not be easy, and we must recognize this in order to persevere in the face of adversity. The existing systems are biased toward traditional energy sources. There is a gestation period before knowledge and institutional capacity on solar energy applications reaches the point when solar energy is commonly understood, and therefore, supported. This is why ADB is invested in pump priming solar energy development in the region, and we need as many collaborators as there are willing. We hope you will join us. Subscribe to the Asia Solar Energy Forum, engage us on getting up to 3,000 MW of solar generating capacity in the region in the next three years, and contribute to the Asia Accelerated Solar Energy Development Fund. We eagerly look forward to your partnership.

On behalf of ADB's partners, again thank you very much and have a safe trip home.

Speaker

SHARE THIS PAGE
Subjects

Latest Speeches

First Asia Solar Energy Forum: Closing Remarks - Ursula Schaefer-Preuss

Speech | 06 July 2010
Read time: 3 mins

SHARE THIS PAGE

Closing remarks by ADB Vice President Ursula Schaefer-Preuss at the First Asia Solar Energy Forum on July 6, 2010 in Manila, Philippines

Introduction

Distinguished officials, business leaders, ladies and gentlemen, it is my privilege to be here at the closing plenary of the First Asia Solar Energy Forum. The discussions over the last two days have been instrumental in identifying opportunities to harness sustainable solar energy sources to meet growing energy demand in Asia and the Pacific. One of the most crucial elements of the Forum has been to identify barriers to developing solar projects, and then design solutions to overcome them.

Summary of Discussions

I would like to reiterate ADB's commitment to the Asia Solar Energy Initiative, or ASEI. As President Kuroda stated earlier today, ASEI aims to identify and develop projects that will generate some 3,000 megawatts of solar energy by 2013. It is pleasure to see such strong representation from our member countries — from the public and private sectors as well as knowledge partners — and are grateful for the support they have expressed to this initiative.

ADB also notes with interest the various solar related policy initiatives launched by several developing member countries over the past two days. These initiatives stand to fundamentally change the energy sectors of these countries in the decades to come. ADB is eager to support these initiatives through ASEI wherever and whenever possible.

The Forum's session on technology and business models helped identify the drivers necessary to spur the rapid growth of solar energy projects in a number of developed countries and emphasized the need for stakeholders to come together to promote solar energy development in Asia and the Pacific. There is growing interest in setting up large, efficient solar power plants and associated infrastructure such as smart grid transmission facilities. Off–grid solutions are also particularly relevant in a large number of developing member countries to meet the challenges of low levels of access to electricity. ADB can assist in replicating and scaling up such successful solutions through its Energy for All Initiative and Partnership, which has a target of providing access to energy for 100 million people in Asia and the Pacific by 2015.

ADB looks forward to working with governments from its developing member countries and the private sector to catalyze both large and small projects through access to technology, financing and knowledge sharing. In this context, ADB recognizes the need expressed at the first Asia Solar Energy Forum to set up a knowledge platform that will play a key role in bringing together various stakeholders to promote solar energy development in Asia and the Pacific.

Concluding Remarks

ADB believes that the Asia and Pacific region is central to the solar revolution that is necessary to transform the way the world looks at energy and natural resources. Solar power holds the potential to promote low carbon growth, ensure energy security, increase access to energy for all and achieve ADB's overall objective of poverty reduction.

On behalf of the Asian Development Bank, I would like to thank all of you for your presence, support and participation over the past two days. I would also like to acknowledge the role of our knowledge partners in making this First Solar Energy Forum possible. Finally, I would also like to thank the ADB Solar Team for their initiative in making this first Forum a success. We now look forward to the second meeting of Forum in Tokyo later this year, by which time we hope significant progress would have been made on many of the issues discussed at this Forum meeting.

Thank you.

Speaker

    Ursula
    Schaefer-Preuss, Ursula
    Former Vice-President, Knowledge Management and Sustainable Development
SHARE THIS PAGE
Subjects

Latest Speeches

ASEAN+3 Forum on Rural Biomass Energy - Paul Heytens

Speech | 13 July 2010
Read time: 5 mins

SHARE THIS PAGE

Opening remarks by ADB PRC Country Director Paul Heytens at the ASEAN+3 Forum on Rural Biomass Energy on July 13, 2010 in Beijing, People's Republic of China

I. Introduction

Distinguished guests, ladies and gentlemen. Good morning to you all! It is a great pleasure for me to address this ASEAN+3 Forum on Rural Biomass Energy.

On behalf of the Asian Development Bank (ADB), I would like to congratulate the Ministry of Agriculture and the ASEAN Secretariat for organizing this forum on rural biomass energy. We are very pleased to be here and to co–sponsor this event.

The forum is not only very timely, but it also highlights the increased importance of rural biomass utilization for rural energy supply and environmental management in the context of regional cooperation.

II. Rural Biomass Resources and Rural Energy Demand in Asian Developing Countries

The developing countries of Asia are looking for effective, creative ideas for up–scaling clean, renewable energy. No sector of society will gain more socially, economically, and environmentally from increased access to clean, reliable, and renewable energy than the poor, particularly those living in rural areas.

In the coming decades, there will still be a large population living in rural Asia, and many rural residents presently have no access to electricity. Millions of rural households must therefore rely on burning firewood and various agricultural wastes to heat their homes and cook their meals. Consequently, how to promote rural growth, environmental protection, and clean energy in a balanced way becomes a major long–term development challenge here in Asia In Asian countries, biomass energy — produced from animal and crop wastes — has the potential to make a significant impact on two of the region's most pressing development challenges: rural poverty and environmental degradation.

ADB recognizes the need for its developing member countries (DMCs) to broaden their energy sources. As guiding principles for the utilization of agricultural waste, ADB advocates an integrated approach to combine waste utilization, biogas digestion and agro-ecological development into one system.

III. ADB Experiences of Addressing Rural Energy Issues in the PRC

Here in the PRC, ADB has been assisting the Government in addressing these issues in a number of ways:

Through technical assistance, ADB has supported central government agencies in preparing a National Strategy for Rural Biomass Renewable Energy Development for the PRC. The National Strategy provided an overall framework for the joint development of rural biomass renewable energy that embodies the long–term strategic options of the Government, ADB, and development partners.

ADB has also provided assistance through the Efficient Utilization of Agricultural Wastes Project, co–financed by the Global Environment Facility (GEF), which focuses primarily on household biogas systems and their economic benefits for rural farmers. Since its implementation in 2005, the Project has made significant impacts.

For example, a recent Project Beneficiary Impact Assessment showed that: (i) household incomes rose by 86% compared to non–project households; (ii) firewood consumption was reduced by 61% and coal use by 30%; (iii) women's time for household chores was reduced by 40%; and (iv) household sanitation and health conditions improved substantially.

The Project also raised awareness regarding household biogas development at both national and provincial levels. Project activities, including communications strategies to promote adoption of household biogas systems and ongoing government engagement, have supported the Project to act as a catalyst for development of the national household biogas program, and about 40 million household biogas systems have been established in the PRC.

A second ADB loan–funded project — the Integrated Biomass Renewable Energy Project — was approved in April 2010. This Project aims to upscale household biogas digestion to medium and large–scale biogas systems at livestock farms. The integrated system designed under the Project is a cost–effective way to address both rural energy gaps and the rural non-point source pollution problem. Further, it complements the earlier ADB project, which focused only on household biogas systems.

IV. Looking Forward

Ladies and Gentlemen, ADB's assistance has included lending, technical assistance, and policy advice in support of our DMCs' development priorities. We are pleased to be a part of their rural biomass renewable energy development, and to be able to contribute to the improvement of the rural environment as well as the poor's access to energy.

ADB is committed to addressing climate change and minimizing the environmental consequences of growth through improved energy efficiency and greater use of renewable energy in the Asia and Pacific region. To this end, ADB has launched various targeted initiatives in the framework of its Clean Energy and Environment Program.

Among the key components of the Program are:

  • the Carbon Market Initiative, which provides upfront financing and technical support for projects with greenhouse gas mitigation benefits;
  • the Energy for All initiative and related programs, which will increase access by the poor to clean and efficient energy services; and
  • the Energy Efficiency Initiative, which aims to expand ADB's clean energy portfolio to $2 billion a year.

The renewable energy (and particularly the rural biomass) agenda has significantly advanced over the past few years through knowledge sharing and collaboration among countries in the Asia and Pacific region. To further promote regional collaboration, ADB, together with other international development partners, has been exploring ways to further support the sustainable development of biomass energy.

For example, FAO, IFAD and ADB jointly launched a biofuel initiative in the Greater Mekong Subregion in 2007, which called for concerted and coordinated efforts to develop sustainable biofuel technologies, reduce the use of fossil fuels, effectively contribute to climate change mitigation, and help reduce rural poverty. The aim of the initiative is to generate a win–win situation for biofuel producers, food buyers and energy users.

Today's forum offers yet another important platform for regional cooperation on biomass renewable energy. I am confident that open and frank exchanges between participants and the international experts attending this forum will make a significant contribution to taking this agenda forward.

Let me once again express my sincere gratitude to the Ministry of Agriculture and ASEAN Secretariat for coordinating and organizing this forum. I am looking forward to productive discussions over the next few days on how to upscale the development of biomass energy from the household level to community and industry levels, and also how to establish a mechanism to share these experiences among the ASEAN+3 countries.

Thank you very much.

Speaker

SHARE THIS PAGE
Subjects

Latest Speeches

Low-Carbon Development in Small and Medium-Sized Cities in the People's Republic of China: Challenges and Opportunities

Small and medium-sized cities in the People's Republic of China will add significant pressure to the environment by increasing greenhouse gas emissions and exacerbating air, water, and solid waste pollution.

3 ideas that are good for both economy and environment - Vinod Thomas

Op-Ed / Opinion | 01 January 2012

SHARE THIS PAGE

As we enter a new year, the world continues to be in the grips of dual crises: a stubborn economic downturn with widespread job losses combined with accelerating global warming threatening vulnerable communities. Many argue that dealing with climate change in the midst of an economic slump will hurt recovery efforts. The underlying reality, however, is quite the opposite. Not only can preparing for climate change offer opportunities for economic growth, it would be unwise to pursue one without the other.

Yet attempts to deal with the economic downturn and climate change have run into a seemingly intractable stalemate. This dynamic was clearly on display at the recent Durban climate talks, where economic anxiety rang through hallways. While the final outcome was significant, it was hindered by the weight of domestic economic and political conditions.

Breaking this stalemate requires hard evidence. Here we present specific examples of common sense policies that can promote growth and cut greenhouse gas emissions.

First, energy has a substantial influence on both the global economy and climate. Energy expenditure represents about 8% of GDP worldwide, while accounts for about 40% of global greenhouse gas emissions through its use in electricity, heating and industry. No solution to the climate crisis is possible without a fundamental shift to low-carbon energy.

Fortunately, governments can make huge gains through energy efficiency, which can both drive growth and make a significant dent in emissions, given the right drivers and incentives. [People's Republic of] China, for example, has employed investments, penalties, rewards and awareness-raising activities to slash energy use among its largest 1,000 companies. These actions prevented the release of 265m metric tonnes of carbon dioxide between 2006 and 2009.

Phasing out fossil fuel subsidies, although politically challenging, would spur global clean energy development and generate growth. Countries spent a staggering $409bn dollars on fossil fuel subsidies in 2010.

Second, forestry represents around 12% of global greenhouse gas emissions, while presenting another major economy-boosting opportunity. In the Amazon, for example, ranchers routinely fell a hectare of forest to create a pasture worth around $500, while releasing hundreds of tonnes of carbon dioxide into the atmosphere. One win-win solution is to prevent deforestation where the land is worth more with trees than without. At prices of $10 for every ton of unreleased emissions, those Amazonian groves could generate several times more from carbon markets than from pasture.

Another solution is to restore already degraded lands. Niger, one of the world's poorest nations, offers a prime example. Reform of land and tree tenure and a programme to support regeneration of trees has benefitted 4.5 million people, increasing food production and farmers' incomes, as it creates new markets. Brazil, meanwhile, has about 300m hectares of degraded forest lands, with the potential to create agricultural jobs without clearing more virgin forest.

Third, transportation generates about 12% of global GHG emissions and represents an opportunity for a more sustainable and profitable path. Around the globe, car ownership is booming, along with an expanding middle class. This dynamic is creating more urban gridlock and deteriorating air quality, as well as increasing emissions. While an expanding auto industry can be part of a country's economic recovery, investments in cleaner public transport have been found to generate even greater economic returns.

In the United States, stimulus dollars spent on public transport yielded 70 more job hours than those spent on highways, according to Smart Growth America. Meanwhile in Mexico, the government is pursuing an innovative transportation approach with policies and investments to scale up bus rapid-transit networks across the country.

Moving away from traditional approaches of economic growth will not be easy. Even where energy reform, sustainable forestry, and investments in public transit can be shown to be beneficial, powerful special interests are blocking progress in many countries. To overcome these entrenched interests, countries - especially the world's leading greenhouse gas emitters – need to recognize that addressing climate change is in their national interest and will improve public well-being.

The world will, of necessity, eventually move to a low-carbon future. But it is the countries with the political courage to act boldly and urgently toward this future who will be best positioned to reap the rewards.

Author

  • Thomas, Vinod
    Visiting professor at National University of Singapore and Asian Institute of Management. 
SHARE THIS PAGE
Publisher
Subjects

Latest Op-Eds / Opinions

Solutions for economy and climate - Vinod Thomas

Op-Ed / Opinion | 01 January 2012

SHARE THIS PAGE

At the turn of 2012, the world continues to be in the grip of a two-fold crisis: an economic downturn and widespread job losses on the one side and accelerating global warming and extreme weather events on the other. So far, Asia has been less vulnerable than other regions to the economic slump, but has been arguably the most prone to natural calamities.

While both economy and climate demand urgent attention, political leaders fear that dealing with climate change will hurt recovery efforts. In reality, mitigating and adapting to climate change can also offer opportunities for economic growth. Yet attempts to deal simultaneously with both crises have run into a seemingly intractable stalemate ― as seen at the year-end climate summit in Durban, South Africa. So here we propose actions in three areas that can promote growth while dealing with climate change.

First, energy has a vast influence on both the global economy and climate. Energy expenditure represents about 8 percent of GDP worldwide. It accounts for about 40 percent of global greenhouse gas emissions through its use in electricity, heating and industry, which has been rising steadily, especially in relatively fast growing Asia. No solution to the climate crisis is possible without a fundamental shift to low-carbon energy.

As seen in the experience of Korea and elsewhere in Asia, governments can make gains through energy efficiency, which can both drive growth and make a dent in emissions. [People's Republic of] China, the world's second largest economy, has employed investments, penalties, rewards and awareness-raising activities to slash energy use among its largest 1,000 companies. These actions prevented the release of 265 million metric tons of carbon dioxide between 2006 and 2009.

Phasing out fossil fuel subsidies, meanwhile, although politically challenging, would spur global clean energy development and generate growth. Countries spent a staggering $409 billion in fossil fuel subsidies in 2010.

Second, forestry represents around 12 percent of global greenhouse gas emissions, while presenting a major economy-boosting opportunity. From Brazil, the largest economy in Latin America, to Indonesia, the largest in Southeast Asia, ranchers and loggers routinely fell a hectare of forest to create a pasture worth a few hundred dollars while releasing hundreds of tons of carbon dioxide into the atmosphere. One win-win solution is to prevent deforestation where the land is worth more with trees than without. At prices of $10 for every ton of unreleased emissions, those groves could potentially generate several times more from carbon markets than from pasture or deforestation.

Another solution is to restore already degraded lands. In Niger, one of the poorest nations, land tenure reform and a nationwide tree regeneration program have benefitted 4.5 million people. Brazil and Indonesia, meanwhile, have vast tracts of degraded forest lands with potential for restoration and job creation without clearing forest. In much of Asia, reversing deforestation, soil erosion, the loss of coral reefs and rising pollution can be a vital part of reducing the damages from floods.

Third, transportation also generates about 12 percent of global GHG emissions and represents an opportunity for a more sustainable and profitable path. In Asia, car ownership is booming, along with an expanding middle class. This dynamic is creating severe urban gridlock and deteriorating air quality, as well as increasing emissions. While an expanding auto industry can be part of economic recovery, investments in cleaner public transport have been found to generate even greater economic returns.

In the United States, stimulus dollars spent on public transport yielded 70 percent more job hours than those spent on highways, according to Smart Growth America. Meanwhile in Mexico, the government is pursuing an innovative transportation approach with policies and investments to scale up bus rapid-transit networks across the country.

Moving away from the old approaches of economic growth will not be easy. Even where energy reform, sustainable forestry, and investments in public transit can be shown to be beneficial, powerful special interests are blocking progress in many countries. To overcome these entrenched interests, countries ― and especially the top greenhouse gas emitters in Asia and the West ― need to address climate change is in their own national interest. Equally, in Korea and other countries, adapting to a changing climate is becoming essential as well.

Willingly or not, Asia and the world will, of necessity, eventually move to a low-carbon future. But it is the countries with the political courage to act boldly and urgently today who will be best positioned to reap the rewards.

Author

  • Thomas, Vinod
    Visiting professor at National University of Singapore and Asian Institute of Management. 
SHARE THIS PAGE
Publisher
Countries
  • Afghanistan
  • Armenia
  • Azerbaijan
  • Bangladesh
  • Bhutan
  • Brunei Darussalam
  • Cambodia
  • China, People's Republic of
  • Cook Islands
  • Fiji
  • Georgia
  • Hong Kong, China
  • India
  • Indonesia
  • Japan
  • Kazakhstan
  • Kiribati
  • Korea, Republic of
  • Kyrgyz Republic
  • Lao People's Democratic Republic
  • Malaysia
  • Maldives
  • Marshall Islands
  • Micronesia, Federated States of
  • Mongolia
  • Myanmar
  • Nauru
  • Nepal
  • Pakistan
  • Palau
  • Papua New Guinea
  • Philippines
  • Samoa
  • Singapore
  • Solomon Islands
  • Sri Lanka
  • Taipei,China
  • Tajikistan
  • Thailand
  • Timor-Leste
  • Tonga
  • Turkmenistan
  • Tuvalu
  • Uzbekistan
  • Vanuatu
  • Viet Nam
Subjects

Latest Op-Eds / Opinions

The Clean Development Mechanism: A Field Guide for Transport Projects

This field guide has been developed to share the basic ideas and concepts of the application, development, and approval process of the Clean Development Mechanism for transport projects.

Subscribe to Clean energy