![About Us](../../../../../../energy/assets/gif/title_library.gif)
ADB to help create funds for clean
energy projects for Pakistan, other Asian countries
Apr 18, 2008 - Asia Pulse Data Source
Islamabad - The Asian Development
Bank will help establish five private sector funds
targeting
investments
of up to $1.2 billion (750 million euros) for clean
energy projects in Asia, the bank said Thursday.
The Manila-based bank said it will provide $20 million
(euro12.56 million) to each of the five private equity
funds, for total seed money of $100 million (euro63
million).
ADB believes the success of these
funds will help demonstrate the credibility of private
equity in the emerging clean energy sector in developing
Asia, and mobilize capital to support other private
equity funds, Mu-Shin Kim, Investment Specialist
in ADBs Private Sector Operations Department, said
in a statement. The funds MAP Clean Energy Fund,
China Environment Fund III, GEF South Asia Clean
Energy Fund, Asia Clean Energy Fund, and China Clean
Energy Capital were selected from 19 fund managers
who responded to ADBs call in July 2007 for the establishment
of clean-energy focused private equity funds.
2030, global energy demand will likely rise 53 percent
from current levels, with a large portion of the
demand coming from developing countries in Asia,
ADB said. The energy investment in the region is
highly dependent on coal-fired power generation and
significant resources need to be invested into clean
energy and low-carbon alternatives over the next
few decades, Kim added.
Coal is considered the dirtiest, most carbon intensive
of all fossil fuels. Emitting 29 percent more carbon
per unit of energy than oil and 80 percent more than
gas, it is one of the leading contributors to climate
change, according to the environmental group Greenpeace.
The MAP Clean Energy Fund (MAP) has the largest
target size of the five funds, aiming to invest $400
million in 10-15 projects across Asia, with a focus
on Indonesia and Southeast Asia. Projects include
geothermal ventures in Indonesia, wind projects in
India and Pakistan, and bio-ethanol farms in the
region without competing with food crops. The other
funds target mobilizing investments ranging from
$100-250 million.
|