ADB to double clean energy investments to $2 billion

The Manila, Philippines-based Asian Development Bank said today it plans to double its annual clean energy investment to $2 billion by 2013.

The intent, under ADB's Energy Efficiency Initiative, is to accelerate low carbon growth and reduce greenhouse gas emissions. ADB, which is dedicated to reducing poverty in the Asia and Pacific regions, hit the $1 billion investment mark in 2008, a goal established four years ago.

"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 catalyze significant additional resources from the private sector, carbon markets and other sources," said ADB President Haruhiko Kuroda in a news release.

ADB also launched a partnership today targeted at providing access to modern energy to an additional 100 million people in the Asia-Pacific region by 2015. According to ADB, more than 800 million people in this area don't have access to energy, and nearly 1.8 billion people rely on traditional biomass fuels for household needs. The plan is being funded ADB’s Energy for All Initiative, a regional technical assistance program supported by the government of the Netherlands.

According to the release, ADB’s cleantech investments to date include: power transmission enhancement in Azerbaijan; wind power projects in the People's Republic of China (PRC) and India; hydro power development in Bhutan, PRC and Vietnam; and a biomass power plant in Thailand.

Earlier this year, ADB approved a $31.1 million loan to the Philippines, allowing the government to distribute 13 million compact fluorescent lights to homes and businesses. The move was expected to save nearly $100 million in fuel costs and postpone $450 million in investments to power facilities and related networks (see Trans-India drops $375M Solar Semiconductor bid).

ADB also provided a $200 million loan to the Qitaihe government in China to build a wastewater treatment plant for Songhua River (see Good week for auto technology). And in 2008, ADB provided RMB 800 million ($117 million) in financing to support energy-efficient projects led by China’s private sector (see China green building projects to get $117M financing).

This week, ADB's board of directors also approved a $2.9 billion funding plan for India, from 2009-2012, although there was reportedly opposition from China about the plan related to a $60 million watershed development project in Arunachal Pradesh.

Cleantech developments making news in the past 24 hours

• AES raises $1.58B with China Investment

View the last week of cleantech developments here | Subscribe to full feed