The Asian Development Bank (ADB) will stop financing thermal power plants
The Asian Development Bank (ADB) will stop funding thermal power plants – an important source of energy in developing countries.
ADB often provides loans and grants for thermal power plant projects in the poorest countries in the Asia-Pacific region.
However, in its recently released document, ADB said this bank’s policy “no longer matches” with the global view on climate change.
The Bank based in Manila (Philippines) states that coal and other fossil fuels play an important role in ensuring access to energy for economic development in the Asia-Pacific region, But the challenge of energy access has not been resolved.
Besides, the use of coal and fossil fuels is also harmful to the environment and accelerates the process of climate change.
As a result, ADB said it would stop funding all coal, oil, and natural gas exploration and production activities.
However, ADB said that under certain conditions, the bank will finance natural gas projects and power generation solutions that combine “green” and fossil fuels such as a backup plan.
Between 2009 and 2019, ADB invested $ 42.5 billion in energy projects in Asia, where about 60% of its electricity output was generated from coal.
It is expected that the final draft energy policy will be submitted to ADB’s Board of Directors in October.