ADB set to up investment in clean energy projects to $1billion

The Asian Development Bank is working on an energy efficiency initiative to expand its investment in clean energy projects to $1 billion a year, ADB President Haruhiko Kuroda has said.

In his address to the ADB board of governors, Kuroda said the bank would be introducing a "carbon market" initiative that would look into the aspects of climate change and energy security with significant benefits for both the developing and industrialised countries.

Kuroda said he would also set up a panel of eminent people for insights into the region's future.

"The panel's views will be discussed at our 2007 annual meeting and will help guide us in a comprehensive, consultative review of our long-term strategic framework. This will also help define the ADB's role in the changing Asia-Pacific region," he said.

Finance Minister P Chidambaram, who is also chairman of the ADB's board of governors, said the bank had started preparation of a new strategy for regional cooperation and integration to better reflect and respond to the region's new financial, economic and political dynamics.

Under the "Innovation and Efficiency Initiative", he said the ADB had introduced three measures to remove business bottlenecks and increase flexibility and responsiveness.

These included a new approach to cost-sharing, financing modalities such as multi-tranche, sub-sovereign and non-sovereign financing, and expansion of local currency lending to reduce currency mismatches.