2021 Energy Policy paper circulated to the Board
The R-Paper of the 2021 Energy Policy was circulated to the Board on 29 September ahead of its approval on 20 October. It is also now publicly available as prescribed of R-Papers of this nature.
The ADB Energy Policy 2021 updates the existing Energy Policy 2009 based on significant changes that have transpired in the sector, guides ADB’s energy sector operations, learns from the recent IED sector-wide evaluation, and aligns with Strategy 2030 and global commitments including the Sustainable Development Goals (SDG) and the Paris Agreement on Climate Change.
The new policy objectives will help DMCs accelerate the development of sustainable and resilient energy systems that provide reliable and affordable access for all, foster inclusive economic growth and social development, and support the low-carbon transition in Asia and the Pacific.
The changes from the 2009 Energy Policy include:
ADB will cease financing new coal-fired generation capacity;
ADB’s support for natural gas and oil will be set along the parameters of energy access, avoidance of carbon lock-in (in the case of gas), and a set of strict screening criteria;
The 2021 Energy Policy is aligned with Strategy 2030, Sustainable Development Goals and the Paris Agreement on Climate Change; and,
ADB will ensure a just transition for sectors, communities and individuals who will be adversely affected by the energy transition.
The new Policy mandates for a regular review to refine its approach to energy operations so that it can better respond to the ever-evolving needs of DMCs and use the best options to meet those needs.