Page 8 - AsiaElec Week 38 2021
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AsiaElec                                       INVESTMENT                                            AsiaElec


       AIIB, IRENA sign Asian green





       support deal






        GLOBAL           THE Chinese-backed Asian Infrastructure  up from less than one-third a decade ago. How-
                         Investment Bank (AIIB) and the International  ever, relative to its size, Asia still lags behind, with
                         Renewable Energy Agency (IRENA) have signed  renewables accounting for less than 15% of total
                         a memorandum of understanding (MoU) com-  primary energy consumption in 2020.
                         mitting to work together to support Asia’s energy   Developing countries in Asia are expected to
                         transition and mobilise more private capital for  account for about two-thirds of global energy
                         renewable energy.                    growth by 2040. With its vast wealth of afforda-
                           The Bank and IRENA have agreed to scale up  ble and sustainable energy resources such as
                         their efforts to unlock capital and accelerate the  hydropower, wind and solar, it is essential that
                         uptake of renewable energy by AIIB members.  this growth is met by renewable energy capacity.
                           IRENA director-general Francesco La Cam-  Under its corporate strategy, AIIB will aim at
                         era said the agreement bolsters IRENA’s efforts  reaching or surpassing by 2025 a 50% share of
                         to facilitate the flow of low-carbon capital into  climate finance in its actual financing approvals,
                         the energy transition where it is needed most,  reflecting its commitment to support the Paris
                         including through the Climate Investment Plat-  Agreement.
                         form, a multi-stakeholder initiative designed to   Its Sustainable Energy for Asia Strategy
                         mobilise climate capital, of which IRENA is a  (2017) also sets out a clear framework for how
                         founding member.                     the bank will invest in energy projects that
                           The agreement was signed today by AIIB  increase access to clean, safe, affordable and reli-
                         president Jin Liqun and La Camera at a virtual  able energy for millions of people across Asia.
                         ceremony to mark the new partnership.  The bank is partnering with IRENA to sup-
                           Jin remarked upon how the AIIB and IRENA  port AIIB’s green mandate and help the bank
                         will work together to accelerate investment and  achieve its ambitious climate finance targets.
                         enhance awareness of renewable energy solu-  Over the last five years, AIIB has invested
                         tions throughout Asia.               in 12 renewable energy projects, amounting to
                           “With Asia’s growing energy demand, and the  $1.25bn, in Egypt, India, Kazakhstan, Maldives,
                         rising challenges from climate change, we need  Oman, Pakistan, Tajikistan, Turkey and Nepal.
                         to ensure the region invests more than ever in   Furthermore, 71% of AIIB-financed installed
                         renewable energy and energy efficiency to facil-  power capacity was in renewable energy, with
                         itate their transition to low-carbon energy mix.  about 940 MW of renewable energy capacity
                         This partnership is part of the bank’s journey  added annually.
                         towards realising the goals set out in the Paris   AIIB has  also  invested at  least  $500mn
                         Agreement,” said president Jin.      in on-lending for renewable energy projects
                           “The energy transition is the centrepiece of  through financial intermediaries such as the Tata
                         global efforts to achieve sustainable develop-  Cleantech Sustainable Infrastructure On-Lend-
                         ment, address climate change and accelerate a  ing Facility in India and the SUSI Energy Transi-
                         new age of inclusive, low-carbon growth,” said  tion Fund dedicated to Southeast Asia.
                         IRENA director-general Francesco La Camera.  IRENA has been instrumental in mobilis-
                           “Through partnerships like this, we can  ing finance for renewable energy deployment.
                         catalyse the flow of capital towards renewables  Through its partnership with the Abu Dhabi
                         and energy transition-related infrastructure to  Fund for Development (ADFD) under the
                         build a more resilient, sustainable and inclusive  IRENA/ADFD Project Facility, it has supported
                         system.”                             transformative renewable energy projects in
                           Asia is home to about 60% of the world’s  developing countries across Africa, Asia, Latin
                         population and contributes to almost 50% of  America, the Caribbean and the Pacific. Under
                         global energy-related greenhouse gas (GHG)  the Facility, $350mn in concessional loans was
                         emissions.                           committed over seven annual funding cycles,
                           The region accounts for nearly half of global  assisting 32 projects in 26 countries.™
                         renewable energy capacity, according to IRENA,












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