The World Bank is dangling a new $2.5-billion financing program to push East Asian and Pacific countries towards renewable energy (RE) use.
The Accelerating Sustainable Energy Transition Program would "contribute to reducing greenhouse gas (GHG) emissions by 60 million tons over its lifetime while providing over 20 million people with new or improved access to clean electricity" in the region, the Washington-based multilateral lender said in a Sept. 24 statement.
This program would also "add 2.5 gigawatts of RE capacity — equivalent to 50 utility-scale solar farms or more than 1,000 wind turbines" in a bid to fight climate change and fast-track the transition to low-carbon energy sources, the World Bank added.
Since this region emits more than one-third of global GHG, some countries here have ambitious climate goals — for instance, the Philippines under the Paris Agreement had committed to slash GHG emissions by three-fourths during a 10-year period that began in 2021.
"The transition to low-carbon energy in East Asia and the Pacific is vital for achieving climate and development goals. This program is part of the World Bank's global effort to combat climate change through an accelerated energy transition. Other development partners are expected to join this platform for financing and knowledge to scale up impact," the lender's vice president for East Asia and Pacific Manuela V. Ferro said.
The World Bank would initially provide credits and grants amounting to $260 million for RE projects in Papua New Guinea and the Republic of Marshall Islands, plus a $5-million grant for the ASEAN Centre for Energy to promote cross-border electricity trade and ramp up RE in Southeast Asia.
Also part of the World Bank's pipeline of forthcoming loans is the $600-million Philippines First Energy Transition and Climate Resilience DPL or development policy financing, expected to be approved by its board in March of next year.
World Bank documents showed that this upcoming project to be implemented by the Department of Energy (DOE) would support Philippine government reforms aimed at enhancing electricity markets and improving climate resilience by scaling up clean energy.