ADB updates energy policy on access, security

"These changes further enhance ADB's ability to support countries in Asia and the Pacific as they work to meet their rapidly growing energy needs," said ADB President Masato Kanda in a press release received here today. 

"Nuclear power, for example, is an important technology option for countries looking for reliable alternatives to baseload electricity," he added.

These changes pave the way for ADB to support nuclear power, including investments for the first time. ADB support for developing member countries that choose to pursue nuclear power will be subject to rigorous assessments and the highest standards of safety, security, and environmental and social safeguards, said the press release.

The bank will work closely with the International Atomic Energy Agency (IAEA) and other international authorities to help its developing member countries pursue international best practices and comply with stringent standards on 
nuclear power.
 
Another amendment allows the bank to finance projects that manage methane, one of the most potent greenhouse gases, and curb routine gas flaring in existing oil and gas fields.

Recognizing the crucial long-term role of carbon capture, utilization, and storage (CCUS), ADB has been supporting CCUS technologies in power plants and other hard-to-abate sectors. 

A third change extends this support to CCUS projects that use depleted gas and oil wells to store carbon dioxide.

A fourth amendment-a new addition to the policy-recognizes ADB's potential role in enabling the development of diversified and responsible critical minerals-to-manufacturing value chains.

The changes are part of a mandatory, scheduled review of the existing energy policy, approved in October 2021, and were informed by extensive consultations with ADB's stakeholders.

In 2024, ADB committed about $3.8 billion to energy projects. The bank has also been helping to strengthen policy and regulatory environments for stronger private sector investments to meet the region's rapidly increasing 
energy demand.

ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific.
 
Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet, reports BSS. 

Founded in 1966, ADB is owned by 69 members--50 from the region.