ADB OKs P1.1 billion grant to hasten transition to clean energy in Philippines

MANILA, Philippines — Manila-based Asian Development Bank (ADB) has approved a $22.05 million (P1.1 billion) technical assistance grant to accelerate the transition to clean energy in the Philippines amid growing demand in Southeast Asia.

Other beneficiaries of the grant include Cambodia, Indonesia, Laos, Thailand, Timor Leste and Vietnam.

Of the total grant, $20.25 million comes from ADB while the remaining $1.8 million is co-financed with the Clean Energy Fund, Strategic Climate Fund and the Spanish Cooperation Fund for Technical Assistance.

ADB said energy demand in the region has been rapidly growing due to robust economic growth, demographic expansion, and increased urbanization.

And while the pandemic lowered energy demand for the meantime, a rebound is expected starting 2023. The region has been heavily reliant on fossil fuels, with coal consumption more than doubling in the last decade.

“Energy efficiency remains largely untapped in the region. Progress has been hampered by a lack of energy efficiency policies and regulations and energy performance standards seldom following global best practices,” ADB said.

ADB said the assistance would support ASEAN economies to transition to a cleaner energy future.

While transition is already underway in some countries, the pace of the transformation needs to be accelerated across the region to ensure a development path consistent with the Paris Agreement.

The sectors involved are in energy sector development and institutional reform.

ADB’s latest assistance includes the preparation of sectoral and country-specific assessments, development of new business models, feasibility reports, and other technical studies, and the conduct of workshops and policy dialogues.

This is also aligned with ADB’s Strategy 2030 and will support several of its operational priorities.