Asia and the Pacific to Account for Two-Thirds of Global Energy Growth by 2040

As the Asia and Pacific region undergoes rapid economic expansion, industrialization, and digital transformation, energy demand is expected to skyrocket. By 2040, the region is projected to account for two-thirds of global energy growth, driven by a rising population, increasing urbanization, and growing economic activity. To meet this surge in energy demand, the Asian Development Bank (ADB) is advocating for a sustainable and clean energy future, prioritizing innovative financing, policy support, and regional cooperation to ensure universal access to affordable, reliable, sustainable, and modern energy services.

Key Takeaways:

• The ADB has committed to dedicating over 80% of its energy investments to climate mitigation and adaptation finance by 2024, with a focus on transmission and distribution, wind, solar, and energy efficiency projects.
• The ADB has completely phased out financing for coal projects under its 2021 Energy Policy, with a focus on renewable energy, particularly wind and solar power, to drive the region's energy transition.
• The ADB is promoting regional cooperation and integration programs, including initiatives under the Central Asia Regional Economic Cooperation (CAREC), Greater Mekong Subregional Economic Cooperation (GMS), and South Asia Subregional Economic Cooperation (SASEC) frameworks, to unlock economies of scale and reduce costs.
• The ADB is supporting community-centered energy projects, such as the Malalison Island Solar Project in the Philippines, which provides affordable and reliable energy to local households and businesses.
• The ADB is strengthening its engagement with civil society organizations (CSOs) through its Civil Society Approach paper, which outlines an enhanced approach to CSO engagement across three pillars: increased meaningful CSO engagement, strengthened knowledge sharing and dialogue, and enhanced support for CSO engagement in accountability and transparency.
• The ADB has set a trajectory to commit up to $10 billion to support a unified ASEAN Power Grid, which is expected to provide renewable and affordable electricity to over 670 million people across the region.

Statistics:

• By 2040, Asia and the Pacific will account for two-thirds of global energy growth.
• The ADB committed $3.8 billion to energy projects in 2024, with over 80% dedicated to climate mitigation and adaptation finance.
• Renewable energy projects accounted for 20% of the ADB's energy investments since 2020, equivalent to 37 million tons of CO2 (tCO2) emissions avoided.
• The ADB has financed projects that have resulted in the installation of 500 megawatt solar photovoltaic and 500 megawatt hour battery storage systems in Uzbekistan.
• The Malalison Island Solar Project in the Philippines provides 188 local households and businesses with affordable and reliable energy.

Sources:

• "ADB to commit up to $10 billion to support unified ASEAN Power Grid" (Source: Asian Development Bank)
• "ADB's 2021 Energy Policy: A roadmap for a sustainable energy future" (Source: Asian Development Bank)
• "ADB's Civil Society Approach paper: Enhanced engagement with civil society organizations" (Source: Asian Development Bank)
• "Malalison Island Solar Project: Bringing affordable energy to local communities in the Philippines" (Source: Asian Development Bank)
• "ADB's Energy Sector Office: Advancing clean energy development across the region" (Source: Asian Development Bank)