The World Bank is offering a new USD 2.5-billion financing program to accelerate the shift toward renewable energy (RE) across East Asian and Pacific countries.
According to a report by Manila Bulletin, this initiative, titled the “Accelerating Sustainable Energy Transition Program” is aiming to significantly reduce greenhouse gas (GHG) emissions in the region by 60 million tons throughout its duration.
Additionally, it seeks to improve or provide access to clean electricity for over 20 million people.
According to the World Bank, the program is also positioned to add 2.5 gigawatts (GW) of renewable energy capacity, equating to the output of 50 utility-scale solar farms or over 1,000 wind turbines. The effort is intended to combat climate change and drive the region’s transition to low-carbon energy sources.
The East Asia and Pacific region accounts for over one-third of global GHG emissions, and some countries, including the Philippines, have set ambitious climate goals. Under the Paris Agreement, the Philippines committed to reducing its GHG emissions by 75% over a 10-year period that started in 2021.
World Bank Vice President for East Asia and Pacific Manuela V. Ferro said that the shift to low-carbon energy is crucial in achieving development goals. This initiative is part of the World Bank’s global efforts to tackle climate change via an enhanced energy transition.
She added that other development partners are expected to join this platform, contributing to financing and knowledge to amplify its impact.
The World Bank’s initial funding included USD 260 million in credits and grants for renewable energy projects in Papua New Guinea as well as the Republic of Marshall Islands, and a USD 5-million grant for the ASEAN Centre for Energy to promote cross-border electricity trade and boost renewable energy adoption in Southeast Asia.
In the pipeline for the Philippines is a USD 600-million development policy financing project titled Philippines First Energy Transition and Climate Resilience DPL, expected to be approved by the World Bank board in March next year.
This project will support the Department of Energy (DOE) in advancing reforms aimed at improving electricity markets and strengthening climate resilience by scaling up clean energy initiatives.
