The Asian Development Bank (ADB) plans to double its clean energy investments in Asia to $2 billion a year from the previous target of $1 billion, in a bid to accelerate reduction of greenhouse gas emissions in the region, ADB said in a release.
The new investment target is part of ADB's Energy Efficiency Initiative (EEI), announced by ADB president Haruhiko Kuroda at the high-level meet on climate change in Asia and the Pacific under way at the ADB Headquarters in Manila.
"While $2 billion annually is a significant commitment, this represents only a fraction of the region's financing needs in the area of clean energy. But we expect that this contribution will catalyse significant additional resources from the private sector, carbon markets and other sources," said Kuroda.
The new target will take effect from 2013 and adds to ADB's already significant clean energy investments. In 2008, ADB achieved the $1 billion a year target set at the outset of the EEI four years ago, the release said.
ADB is currently financing several innovative clean energy investments, including a power transmission enhancement project in Azerbaijan, wind power projects in the People's Republic of China and India, hydro-power development in Bhutan, PRC and Viet Nam, energy-efficient lighting for low-income households in the Philippines and a biomass power plant in Thailand, it said.
ADB also provides aid for improvement and expansion of energy-efficient mass transit systems in several Asian cities under the Sustainable Transport Initiative.
"Making buildings and transport systems more energy efficient is seen as the most cost-effective way of reducing Asia's fast growing energy demand, improving supply-side efficiency, lowering greenhouse gas emissions and reducing countries' reliance on expensive fossil fuel imports," the release said.