ADB Funds Asian Business Energy Efficiency Expansion

HOSPITALS, hotels, malls, and many other businesses in Southeast Asian countries are expected to adopt cost-effective, energy-saving solutions through energy efficiency projects funded by ADB (Asian Development Bank).

ADB at the end of last week signed a multicurrency loan worth $20 million for energy efficiency projects. This innovative and flexible loan allows energy efficiency investors to decide at each draw-down whether it needs Thai baht, Malaysian ringgit, or Philippine pesos in order to match the currency with the location of its energy efficiency investments.

“The energy and infrastructure investment choices that Southeast Asian countries make today will have important implications for climate change in the region over the long term. Energy efficiency projects offer the most cost-effective and low-risk opportunities for climate change mitigation,” said Todd Freeland, Director General of ADB’s Private Sector Operations Department.

Investment in energy efficiency in Southeast Asia’s factories and other buildings is falling far short of the cost-effective potential. Key hurdles to scaling up investment include a lack of awareness among business leaders and a lack of skilled experts and companies to help develop and manage energy efficiency projects.

This ADB assistance will catalyze direct investments in small energy efficiency projects by encouraging the transfer of technical expertise and highlighting the private sector opportunity in the development and financing of energy efficiency projects. The investments resulting from this initiative will save a projected 150,000 megawatt hours of energy, avoid 90,000 tons of carbon emissions, and yield average annual net savings of $10 million by 2019.

At the same time, ADB is implementing a $600,000 technical assistance that will raise awareness about energy efficiency by bringing senior business owners and leaders from the Southeast Asian region together to discuss the role energy efficiency can play in improving business and sustaining growing economies. As part of this initiative, ADB has scheduled workshops on energy efficiency services for senior executives over the next two months in Kuala Lumpur, Manila, Bangkok, and Phnom Penh.

Picture Kuala Lumpur at Night By Sp eloc (Own work) [CC-BY-SA-3.0], via Wikimedia Commons

Tuesday 29th October 2013

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