MADRID, SPAIN. Governments in Asia urgently need to create the right environment to attract investments in clean energy, according to the head of the Asia Development Bank.
“As Asia and the Pacific forge ahead, the region’s energy demands will rise enormously,” says ADB president Haruhiko Kuroda. “It has been estimated that over US$6.4 trillion of investment will be needed for the region’s energy infrastructure by 2030.”
Asia’s share of global GHG emissions has trebled since 1973 and will reach 42% by 2030 unless there is a dramatic change in the trend to build new coal-fired power plants. “To prevent the worst impacts of climate change, much of this investment would need to flow into clean energy options,” he told ADB’s annual meeting in Spain.
The global clean energy sector attracted investment of US$148 billion last year but much of that is being used in Europe and other developed countries, while relatively little is reaching Asia because of a lack of supportive government policies and legislation, he explained. Policymakers have a critical role to play in establishing the right regulatory, policy and institutional frameworks needed to attract investment at the scale required.
ADB “emphasises the acceleration of the widespread application of renewable energy and energy efficiency in its developing member countries,” the bank explains in a new policy. It is possible to improve energy security and reduce GHG emissions “by implementing energy efficiency measures and seeking alternative sources of energy without sacrificing economic growth and living standards.”
ADB is systematically studying the barriers to renewables and to facilitate preparation and implementation of more clean energy projects. It is working to enhance awareness on renewables and energy efficiency opportunities through country-based capacity-building initiatives, as well as taking advantage of the growing carbon market.
“Greater use of clean energy, including renewable energy forms, and increased energy efficiency are critical to maintaining growth, reducing poverty, and combating environmental degradation and the threat of climate change,” it continues. “As more and more member countries recognise the need to switch to clean and renewable energy forms, the ADB is helping them move their economies onto low-carbon growth paths.”
In its 1995 Energy Policy, ADB emphasised the need to accelerate the application of renewable energy and energy efficiency in its developing member countries, and this focus was strengthened in an energy policy review in 2000 and, in 2006, a further review was carried out, resulting in a 2007 draft document that outlines ADB’s new energy strategy.
Between 2003 and 2005, ADB invested US$2,383 million in clean energy, including the US$115m Renewable Energy Development Sector Investment Project in Pakistan. Energy consumption in the region has increased 289% over the last 30 years, but the focus on fossil fuels “is neither economically nor environmentally sustainable.”
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