Page 14 - AsiaElec Week 44 2021

AsiaElec RENEWABLES AsiaElec

UK provides $150mn to support

Green Finance in Asia

ASIA THE Association of South East Asian Nations Southeast Asia is particularly vulnerable to
(ASEAN) unveiled at COP26 its Catalytic Green rising poverty levels caused by the coronavirus
Finance Facility, which aims to increase access (COVID-19) crisis, while CO2 emissions are
to finance for renewable energy, clean transpor- rising in many developing countries as they turn
tation and urban infrastructure projects in the to cheap coal to provide energy.
region’s developing countries. The ADB involvement comes as a recent
The facility is to be managed by the Asian report highlighted that nearly all internationally
Development Bank (ADB) and will receive available development financing is now commit-
GBP110mn ($150mn) from the UK govern- ted to reducing or ending investment in coal-
ment, which is in turn designed to mobilise fired power, Reuters reported.
GBP5bn ($6.8bn) of public and private capital According to new research from Boston Uni-
from ASEAN member governments and private versity’s Global Development Policy Center, the
investors. G20’s pledge before COP26 to end finance for all
UK Foreign Secretary Liz Truss said that she coal-fired power plants overseas meant that 99%
aimed to boost UK co-investment in clean and of all development finance institutions (DFIs)
reliable infrastructure in developing countries. are committed to cutting coal investment and
“Britain is working closely with allies, raising support for renewables.
through COP26 and beyond, to deliver the clean, “If these institutions live up to their commit-
honest and reliable infrastructure investment ments, it will be easier for developing countries
that the world so urgently needs. Co-invest- to find official finance for renewable energy and
ing with our friends in Asia provides jobs and coal power phase-out than for building new
opportunities here in Britain and will help the coal-fired power plants,” said Rebecca Ray, sen-
world meet its climate goals, but will also drive ior researcher at the GDP Centre and one of the
growth in developing countries by supporting study’s authors.
high-quality infrastructure deals, in line with The study also stressed that China’s
international standards,” she said. announcement in September that it would no
Truss stressed that government must do more longer be involved in overseas coal projects
to mobilise private capital from financial mar- would have a major impact on the coal power
kets, and that trade, investment and the open sector, depriving it of its biggest financial back-
marketplace formed part of the solution to tack- ers, including the China Development Bank and
ling climate change, not the problem. the Export-Import Bank of China.™

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