Commodity Online
MANILA: The Asian Development Bank on Thursday said it would establish private sector funds worth US$1.2 billion to conduct clean energy projects in Asia.

In a statement issued here, the ADB said, it believes the success of these funds will help demonstrate the credibility of private equity in the emerging clean energy sector in developing Asia, and mobilize capital to support other private equity funds.

By 2030, global energy demand will likely rise 53 per cent from current levels, with a large portion of the demand coming from developing countries in Asia, ADB said.

The energy investment in the region is highly dependent on coal-fired power generation and significant resources need to be invested into clean energy and low-carbon alternatives over the next few decades, the statement said.

Coal is considered the dirtiest, most carbon intensive of all fossil fuels. Emitting 29 percent more carbon per unit of energy than oil and 80 percent more than gas, it is one of the leading contributors to climate change, according to the environmental group Greenpeace.

The MAP Clean Energy Fund (MAP) has the largest target size of the five funds, aiming to invest $400 million in 10-15 projects across Asia, with a focus on Indonesia and Southeast Asia.

Projects include geothermal ventures in Indonesia, wind projects in India and Pakistan, and bio-ethanol farms in the region without competing with food crops. The other funds target mobilizing investments ranging from $100-250 million.

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