KATHMANDU: Asian Development Bank (ADB) is to increase its clean energy investments to $2 billion a year from a previous target of $1 billion, in a bid to accelerate low carbon growth and reduce greenhouse gas emissions.

The new target is part of ADB’s Energy Efficiency Initiative (EEI). It was announced by ADB president Haruhiko Kuroda during the high-level dialogue on Climate Change in Asia and the Pacific, at ADB’s headquarters this week.

“While $2 billion annually is a significant commitment, this represents only a fraction of the region’s financing needs in the area of clean energy. But we

expect that this contribution will catalyze significant additional resources from the private sector, carbon markets and other sources,” said Kuroda.

The new target will take effect from 2013 and adds to ADB’s already significant clean energy investments. Among ADB’s many innovative clean energy investments are power transmission enhancement in Azerbaijan; wind power projects in the People’s Republic of China (PRC) and India; hydro power development in Bhutan, PRC and Vietnam; plans for energy-efficient lighting for low-income households in the Philippines and a biomass power plant in Thailand.