ADB urges accelerated clean-energy transition
THE Asia-Pacific region must ramp up its efforts in transitioning to clean energy systems by strengthening government support, expanding financing options and advancing digitalization, according to the Asian Development Bank (ADB).
“Countries across the Asia and Pacific region must expedite their efforts in energy transition to increase the uptake of clean energy solutions and attain their climate and development goals,” it said in a report detailing the results of its Asia Clean Energy Forum.
“The shift should ensure a fair energy transition, dismantle sectoral silos, and encourage stakeholder collaboration. ADB and similar multilateral banks can assist in financial de-risking for countries,” it added.
The bank said government support will be crucial in promoting clean energy policy frameworks to drive investment.
“This backing can develop state-supported financial incentives for clean energy, encourage state entities to invest in clean infrastructure, accelerate the development of policies, such as guidelines for implementing direct power purchase agreements and increase awareness of the market for renewable energy certificates,” it said.
“The formation of agile, effective partnerships is crucial for boosting clean energy demand and accelerating energy transition across Asia and the Pacific. Collaboration among governments, the private sector, philanthropies, and development agencies can enhance clean energy procurement and lower financing costs,” it added.
The bank noted that more companies in the region are shifting to sustainable energy practices, citing ACEN Corp.
“The Philippines’ ACEN Corp. is at the forefront of the renewable energy transition, divesting from coal plants and setting ambitious goals of achieving 100% renewables by 2025 and reaching a renewable energy capacity of 20 gigawatts by 2030,” it added.
The ADB also said that concessional and blended financing must be made more accessible especially for small- and medium-sized enterprises in the region.
It cited financing options such as mezzanine financing, blended funding, and integrated project development processes.
Emerging technologies such as Artificial Intelligence can also be utilized in the clean energy transition, the ADB said.
“Applying algorithms, machine learning, and artificial intelligence can improve data analysis,” it said.
“Blockchain, digital applications, cloud technology, and internet-of-things devices facilitate real-time monitoring of energy consumption and production, enabling more informed decision-making, and driving cost reductions,” it added. — Luisa Maria Jacinta C. Jocson