Manila: The Asian Development Bank (ADB) has approved a set of changes to its energy policy aimed at enhancing the bank’s commitment to increasing energy access and improving energy security in Asia and the Pacific. “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,” ADB President Masato Kanda stated in a press release.
According to Bangladesh Sangbad Sangstha, the revised policy paves the way for ADB to support nuclear power, marking the first time the bank will include investments in this sector. The support for developing member countries pursuing nuclear power will be subject to rigorous assessments and adherence to the highest standards of safety, security, and environmental and social safeguards. The bank will collaborate with the International Atomic Energy Agency (IAEA) and other international bodies to ensure compliance with stringent standards.
Additionally, the amendments allow ADB to finance projects aimed at managing methane emissions, a potent greenhouse gas, and reducing routine gas flaring in existing oil and gas fields. Recognizing the significant role of carbon capture, utilization, and storage (CCUS), ADB extends its support to projects utilizing depleted gas and oil wells for carbon dioxide storage.
A new addition to the policy highlights ADB’s potential role in developing diversified and responsible critical minerals-to-manufacturing value chains. These changes result from a mandatory review of the existing energy policy, approved in October 2021, and informed by extensive consultations with ADB’s stakeholders.
In 2024, ADB committed approximately $3.8 billion to energy projects and has been instrumental in strengthening policy and regulatory environments to attract stronger private sector investments to meet the region’s soaring energy demands. As a leading multilateral development bank, ADB supports inclusive, resilient, and sustainable growth across Asia and the Pacific, working with its members and partners to address complex challenges and foster transformative solutions. Founded in 1966, ADB is owned by 69 members, with 50 from the region.