• Monday, Dec 06, 2021
  • Last Update : 12:45 am

ADB's new energy policy to help expand access to reliable clean energy

  • Published at 12:15 am October 21st, 2021
Wind turbine_Power_Plant
Representational photo Bigstock

350 million people in Asia do not have an adequate supply and about 150 million people still have no access to electricity

The Asian Development Bank (ADB) has approved a new energy policy to support universal access to reliable and affordable energy services, while promoting the low-carbon transition in Asia and the Pacific.

"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," said ADB President Masatsugu Asakawa.

"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." he added.

Also Read- Renewable Energy: Dhaka seeks technology, investment through global collaboration

The ADB president said this new policy locks in ADB's strong commitment that it 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," he said.

An ADB press release said progress on access to energy has been rapid across developing Asia and the Pacific. But, roughly 350 million people in the region do not have an adequate supply and about 150 million people still have no access to electricity.

Continuing economic growth and urbanization will require developing affordable and reliable energy systems with substantial additional electricity-generating capacity.

To respond, International Energy Agency scenarios suggest the region's installed electricity-generating capacity could increase by about 7% per annum, from 3,386 gigawatts in 2019 to 6,113 gigawatts by 2030.

Investments in renewable energy generation in the region could reach $1.3 trillion per annum by 2030, doubling the amount from the previous decade.

Also Read- State Minister Nasrul: 40% of power will come from renewable sources in 2041

ADB's 2021 Energy Policy will guide ADB support to the region as it responds to these changes both in terms of energy access and security, and climate change and environmental sustainability. The policy is based on five principles:

Firstly, Securing Energy for a Prosperous and Inclusive Asia and the Pacific. ADB will help its DMCs secure energy for development by supporting electrification programs; promoting cleaner cooking, heating, and cooling; improving energy efficiency across supply and consumption chains; and promoting social inclusion, gender equality, and partnerships.

Secondly, Building a Sustainable and Resilient Energy Future. ADB will help its DMCs increase energy efficiency, deploy more renewable and low-carbon energy, and integrate climate and disaster resilience into energy sector operations.

The policy formalizes ADB's current practice of not financing new coal- fired power and heating plants. ADB will support a planned phase-out of coal in the region, and will commit to a just transition that promotes sustainable, inclusive, and resilient livelihoods for all in affected communities. The policy also recognizes DMCs' request for access to affordable, new technologies.

Also Read- How Grameen Shakti is providing a sustainable renewable energy solution in rural Bangladesh

Thirdly, Supporting Institutions, Private Sector Participation, and Good Governance. ADB will support the institutional development, financial sustainability, and good governance of energy sector institutions and companies, as well as private sector participation.

ADB will also help create the policy frameworks needed to manage the energy transition, including helping its DMCs to update and strengthen their nationally determined contributions and long-term strategies for decarbonization under the Paris Agreement.

Fourthly, Promoting Regional Cooperation and Integration. ADB will promote regional energy cooperation and the integration of energy systems to strengthen energy security and increase cross-border access to cleaner energy sources.

Fifthly, Integrated Cross-Sector Operations to Maximize Development Impact. ADB will continue to combine finance, knowledge, partnerships, and its country- focused approach to deliver integrated solutions with comprehensive and magnified development impacts.

Consistent with ADB's Strategy 2030, the policy adopts a common but differentiated approach in line with each DMC's level of economic development, resource endowment, respective capabilities, and nationally determined low-carbon transition pathway.

Also Read- USAID launches $17m clean energy project in Bangladesh

ADB will prioritize essential energy access in the poorest and most vulnerable countries through greater use of low-carbon and renewable energy sources and rehabilitate infrastructure to enhance energy security and climate resilience.

ADB has made a significant contribution to the region's energy sector with total financing of over $42 billion from 2009 to 2020 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.

ADB is committed to aligning all its operations with the goals of the Paris Agreement and this month raised its ambition to deliver $100 billion in cumulative climate financing from its own resources from 2019-2030.

This will support climate adaptation and mitigation in all sectors including energy. At least 75% of ADB's operations by number of projects will feature climate adaptation and mitigation initiatives by 2030.

Facebook 55
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail