Spiralling fuel costs and the growing threat of climate change mean that huge investments in clean energy are required in the Asia-Pacific region, according to the Asian Development Bank (ADB) and international aid agencies.
Speaking at the Asia Clean Energy Forum in the Philippines, Ursula Schäfer-Preuss, vice-president of the ADB said: “The challenges we face today, soaring fuel and commodity prices, threats from climate change, and growing problems of poor people having limited access to energy, all point to the need to take action.”
The ADB, which recently launched a new fund to help Asia adapt to the impacts of climate change, also announced that it has already achieved its annual target of $1 billion in investments in clean energy in Asia and the pacific. It expects to surpass this target by 50 per cent by the end of the year.
The bank is concerned that a “super spike” in oil prices is imminent and estimates that Asia requires up to $6.4 trillion of investment in new energy infrastructure by 2030. It has called for a reduction in the region’s dependence on fossil fuels.
“Given the cost of oil and its impact on the climate, there is no better time than now to take action,” said Mr. Winston Bowman, Regional Environment Director at the US Agency for International Development. “If action isn’t taken now, it will be much more costly to do so in the future.”
The worldwide clean energy sector is already attracting investments of around $148 billion/year, but most of this is being used in Europe and other developed regions, says the ADB. Little investment is reaching Asia because of a lack of supportive government policies and legislation.
The ADB is seeding its new Climate Change Fund with $40 million and hopes for further contributions from governments, development organizations, foundations, the private sector and other sources.
“The purpose of the fund is to facilitate greater investments in developing countries in Asia and the Pacific to address the causes and consequences of global warming,” said Mr. Werner Liepach, Principal Director of ADB’s Office of Cofinancing Operations. “Money from the fund will be used to provide grant financing for technical assistance, investment projects, research and other activities, and we welcome interested parties to participate in the fund.”
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