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MANILLA, Philippines, August 30, 2006 (Refocus
Weekly)
The Asian Development Bank will conduct a study
into its energy policy, to promote increased use of clean energy in
the Pacific region.
Funded by a US$1 million technical assistance grant, the study
will address a broad range of challenges in the energy sector,
including environmental risks and incentives (such as the Clean
Development Mechanism under Kyoto), promoting private sector
participation, and expanding the role of renewable energy, energy
efficiency, and demand side management.
ADB wants to develop a new strategy to guide energy sector
operations for the next five years, to cope with the heavy
environmental toll from Asia's energy consumption, as well as on the
financial positions of the region's developing economies.
Asia's current annual energy consumption of 2,100 billion tons of
oil equivalent will double by 2025, according to predictions from
the International Energy Agency. During the same period, electricity
demand will grow to 6.3 trillion kWh a year from the current 2.6
trillion kWh, while GHG emissions in the region double to 12,000 Mt
by 2020, accounting for 32% of the world’s emissions.
The adoption of renewables, energy efficiency and clean coal
technologies “is still slow within the region,” says ADB. The high
price of oil is forcing some developing countries to borrow money to
finance their oil and gas imports.
“Policy makers in Asia have begun to realize that a
business-as-usual scenario is clearly not sustainable,” says energy
specialist Ajay Guha. “Developing countries require a stable and
assure supply of energy; however, the technologies that will help
achieve this, such as improved energy efficiency, renewable energy
and clean coal, are limited and far below potential.”
A team of energy specialists will recommend strategies for ADB to
adopt in its lending operations from 2007 until 2012, which will
enhance the effectiveness of its energy sector assistance. The team
will build on the recent ADB Energy Efficiency Initiative which will
allocate $1 billion a year to finance clean energy projects within
the next three years.
The draft strategy will undergo external review and consultations,
with workshops to be conducted in key developing countries. The
grant will also allow ADB to produce a book with comprehensive
energy data and options, which will be jointly prepared with the IEA.
ADB approved its first energy policy in 1981, following the second
oil crisis, which recommended major investments in infrastructure
and maximizing the use of indigenous sources of supply. The second
energy policy paper, approved in 1995, identified major concerns
with enhancing the efficient production and end use of energy, and
integrating environmental considerations in all energy sector
activities to enable sustainable development.
Overall assistance in the energy sector during the 2001-to-2005
period was reduced to $3.2 billion from $4.1 billion during
1996-to-2000, but “the current rise in fuel prices has impacted
energy security and hence focus will need to shift toward efficient
uses of energy, clean energy development, energy security, and use
of indigenous sources of fuel,” explains the Technical Assistance
Report. “Greenhouse gas emission levels are reaching alarming
levels, which highlights the need for sustainable uses of energy.”
“One way to address climate change effects is to contain the
increase in the production of greenhouse gases” which would entail
the use of cleaner energy technologies. “The expected impact over
time of this regional technical assistance is to substantially
increase the use of clean energy and provide energy security in the
region.”
ADB was established in 1966 and is owned by 64 members, 46 of which
are from the region. Last year, it approved loans and grants for
projects totaling $7 billion, and technical assistance of $199
million.
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