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AsiaElec POLICY AsiaElec

ADB advised to withdraw from coal

ASIA THE Asian Development Bank’s (ADB) internal General for Independent Evaluation, Marvin
watchdog, Independent Evaluation, has urged Taylor-Dormond.
the bank to revisit its energy policy and for- “As a leading development partner in the
mally withdraw from financing new coal-fired region, ADB can play a key role in helping
projects. address these serious environmental challenges
The advisers said that the bank needed to through its energy policy.”
change its official policies in a bid to meet the The review found that ADB’s energy pro-
global consensus on climate change. gramme made significant contributions to
The ADB has not invested in coal-fired power increasing the availability and reliability of
plants since 2013, but it must now align its policy electricity supply, through investment in power
to this practice and clarify its formal institutional grid infrastructure, as well as raising the share of
position, said the evaluation document. renewable energy in the region through public
The watchdog carried out a sector-wide and private sector financing.
evaluation of the ADB’s Energy Policy and Pro- The ADB was a pioneering investor in renew-
gramme from 2009 to 2019, and assessed the able energy in many of its developing member
ADB’s assistance to the energy sector across all countries. Even so, its energy programme fell
its members from 2009 to 2019. short of addressing other priorities such as
The report stressed that the ADB had been demand-side efficiency, last-mile electrification,
the leading development partner in the energy and sector reforms.
sectors of several of its developing member “The energy sector is undergoing a dramatic,
countries over the period in lending volume, rapid and global transformation due to new tech-
policy dialogue and partner co-ordination. nological advances and climate change concerns.
ADB approved $42.5bn for the energy sec- ADB’s current energy policy is no longer ade-
tor during the evaluation period, most of which quately aligned with the ongoing transformation
went towards electricity transmission and and with its new corporate strategy,” said IED
distribution. Director Nathan Subramaniam. “ADB needs to
Yet the Asia and Pacific region is still heavily ensure the new policy is aligned with the global
reliant on thermal coal for power and heat gen- consensus on climate change, its corporate strat-
eration, which is a major contributor to climate egy, and recent changes in the energy sectors of
change and air pollution. the developing member countries.”
The region has the world’s biggest number The report recommends that ADB revisit and
of coal projects in the pipeline, with 78% of new update its energy policy to emphasise climate
plants in the pipeline located in ADB’s develop- change mitigation and adaptation as a core prior-
ing member countries. ity. It must place higher emphasis on promoting
“Asia has the highest demand for natural a more active high-level engagement with devel-
resources and the largest emissions of green- oping member countries in their energy sectors,
house gases [GHGs] contributing to climate increase support to address gaps in ADB’s energy
change. Therefore efforts of ADB’s developing operations, and expand energy operations
member countries to curb these emissions will beyond the power sector to meet new energy
have worldwide impact,” said ADB’s Director needs in developing member countries.™

P8 www. NEWSBASE .com Week 35 02•September•2020