Developing countries in Asia and the Pacific have made significant advances in economic development and energy modernization, but still have much to do on these agendas. ADB's 2021 Energy Policy aims to support universal access to reliable and affordable energy services while promoting the low-carbon transition in the region.
The energy landscape has changed radically over the last decade. The Sustainable Development Goals (SDGs), the Paris Agreement on climate change, and ADB's Strategy 2030 set ambitious targets for providing reliable energy access to all, and amplified the calls for action on climate change.
ADB is responding to the transition of an increasingly multifaceted energy sector with a new forward-looking energy policy to guide its operations and to be mainstreamed with other Bank policies and goals.
There is an urgent need for innovative ways to generate power in a socially, economically, and environmentally-sustainable manner.
Incentives and policies to support structural and behavioral changes for improved end use energy efficiency.
From conventional carbon intensive systems to low and zero carbon power systems, with digital technologies to integrate variable renewable energy sources.
Electrification of the transport, industry, and space cooling and heating sectors in parallel with decarbonization of the electricity grid.
Participation of distributed renewable energy providers, including consumers are producers ("prosumers").
To align its energy operations with Strategy 2030, ADB reviewed its 2009 Energy Policy, recognizing the changing contexts and increasing needs of ADB’s developing members while mindful of the impacts of increasing energy use to the climate and environment.
"Energy is central to inclusive socioeconomic development, but the expansion of energy systems has come at the cost of harmful impacts on our climate and environment. ADB’s new energy policy will support our developing member countries (DMCs) in the critical and urgent task of expanding access to reliable, affordable, and clean energy.
This new policy locks in our strong commitment that ADB will not fund new coal power production. Together with our elevated ambition to deliver $100 billion in climate financing to our DMCs in 2019–2030, it provides a clear path for ADB’s contribution to an environmentally sustainable energy future."
- ADB President Masatsugu Asakawa
ADB has made a significant contribution to the region’s energy sector, but the region’s energy financing needs far exceed the resources of any single actor.
The new policy prioritizes ADB’s resources to leverage commercial financing where possible to tackle the most difficult energy challenges.