Sustainable Energy for Asia Strategy to improve access to energy for millions of people in Asia
The Board of Directors of the Asian Infrastructure Investment Bank (AIIB) yesterday expressed its support for the Bank’s Sustainable Energy for Asia Strategy to help its members transition toward a low-carbon future. The strategy sets out a clear framework for the Bank to invest in energy projects that will increase access to clean, safe and reliable electricity for millions of people in Asia. To implement the strategy, the Bank will support its members to do their part as expressed in the Paris Agreement to, “hold the increase in the global average temperature to well below 2 degrees Celsius above pre industrial levels and pursue efforts to limit the temperature increase to 1.5 degrees Celsius”. It will achieve this by aligning its support with its members’ national energy investment plans, including their nationally determined contributions (NDC) under the Paris Agreement.
Currently over one billion people across Asia do not have access to secure and clean electricity to run their homes and businesses. By improving the reliability, reach and efficiency of energy in the region, millions of people will benefit from a higher standard of living and better health.
“Helping to build a sustainable future by reducing reliance on high-emission power supports our mission and green core value,” said Joachim von Amsberg, Vice President of Policy and Strategy at AIIB. “We believe this strategy will contribute to government and private sector efforts to provide millions of people in Asia with access to affordable and reliable energy for the first time.”
To implement the strategy in an environmentally and socially sound manner, the Bank will prioritize investments in:
- Renewable energy projects, such as wind, solar and hydropower.
- Projects that enhance the energy efficiency of existing infrastructure.
- System upgrades that will improve the safety and reliability of infrastructure, such as transmission and distribution networks.
- Reduction of air pollution to immediately address the health needs of vulnerable people.
The strategy embraces the principles underpinning Sustainable Energy for All (SEforALL), the 2030 Agenda for Sustainable Development, and the Paris Agreement. Financing for improved energy access and security will support the Bank’s members in achieving Sustainable Development Goal 7 (SDG 7), which calls for ensuring access to affordable, reliable, sustainable and modern energy for all by 2030.
“As we implement this strategy, we will be engaging with our external stakeholders to help us identify projects that realize our vision of clean and reliable energy for everyone in Asia,” said Mr. von Amsberg.
“We are ready to do our part in support of the Paris Agreement to build a sustainable tomorrow by investing in energy projects that will meet the needs of developing countries and also protect our environment,” said Jin Liqun, President, AIIB.
Notes to Editor
The Sustainable Energy for Asia Strategy underwent two rounds of public consultations (Phase one in November 2016 and Phase two in February 2017) with a diverse set of external stakeholders.
AIIB is a new multilateral development bank founded to bring countries together to address the daunting infrastructure needs across Asia. Headquartered in Beijing, AIIB commenced its operation in January 2016 and has now grown to 77 approved members from around the world. Its mission is to improve economic and social development in Asia by investing in high quality, financially viable and environmentally friendly infrastructure projects.
2. AIIB’s Sustainable Energy for Asia Strategy will help its members transition toward a low-carbon future .
3. It will support AIIB’s members’ plans to meet their commitments under the Paris Agreement.
4. The strategy will contribute to government and private sector efforts to provide millions of people in Asia with access to affordable and reliable energy for the first time.
Initially, AIIB will focus on projects in renewable energy, energy efficiency, rehabilitation and upgrading of existing plants, and transmission and distribution networks. It will cooperate with other multilateral development banks, bilateral agencies and the private sector operating in Asia. Over time, it will also develop financial instruments and engage with potential financial intermediaries in renewable energy and energy efficiency investments.
To promote investments in renewable energy, the Bank will:
- Invest in hydropower, in an environmentally and socially sound manner.
- Develop innovative and transformative wind and solar projects.
- Promote distributed generation to reduce burdens on centralized systems.
- Support the development of significant geothermal resources.
- Support, when sustainable, modern biomass technologies to meet its members’ energy needs in rural areas.
AIIB will invest in a range of measures to improve the energy efficiency of existing infrastructure, including:
- Rehabilitation of existing electricity generation stocks.
- Development of loss reduction and demand-side management programs.
- Efficiency initiatives, such as green lighting and improvement in insulation.
- Enhanced efficiency of district heating networks in rapidly urbanizing cities.