ADB and GEAPP commit $35m towards clean energy

The partnership targets to have clean energy access and transitions within South and Southeast Asia.

The Asian Development Bank (ADB) and the Global Energy Alliance for People and Planet (GEAPP) have jointly announced the launch of a new capital fund to accelerate the adoption of clean energy in South and Southeast Asian nations.

Announced during the World Bank Spring meetings last week, the fund will receive an initial $35 million in catalytic capital from GEAPP. The fund will be administered by the ADB.

The partnership aims to tackle climate change and improve energy access and transition in Asia and beyond, focusing on initiatives such as supporting Battery Energy Storage Systems (BESS) in Vietnam and promoting the early retirement of coal-fired power plants in Indonesia. 

Technical assistance, grant components, and blended concessional instruments will be employed to generate additional capital and support the identified opportunities.

Countries that will benefit from the capital funding toward clean energy include India, Indonesia, Vietnam, Pakistan, and Bangladesh.

SEE ALSO: Only 7% of global energy financing goes to green projects, data shows

“There are great opportunities to open up clean energy access and transition while addressing climate change yet in 2021 just 8% of financing for energy transition technologies went to low- and middle-income countries (LMICs) – that’s the lowest share in 10 years,” said Simon Harford, GEAPP’s Chief Executive Officer. 

By opening new finance flows for the energy sector, minimising the cost of clean energy technology, and creating investable projects that unlock additional funding, the fund will contribute to GEAPP's 2023 priority of increasing access to clean energy technologies across LMICs. 

The partnership between ADB and GEAPP builds on ADB's track record of supporting universal access to reliable and affordable energy while promoting the low-carbon transition in the region. This model is expected to further contribute to international climate finance ambitions.