The Manila-based Asian Development Bank (ADB) has signaled its openness to financing nuclear projects, following updates to its energy policy aimed at expanding energy access and enhancing energy security.

“Nuclear power... is an important technology option for countries looking for reliable alternatives to baseload electricity,” said ADB President Masato Kanda in a Nov. 24 statement.

“These changes further enhance the ADB’s ability to support countries in Asia and the Pacific as they work to meet their rapidly growing energy needs,” he added.

The ADB said it will work closely with the International Atomic Energy Agency (IAEA) and other global regulators to ensure its developing member countries meet strict nuclear power standards, noting that Kanda is expected to sign an agreement with the IAEA this week to advance these goals.

In addition to nuclear energy, the ADB highlighted several other amendments to its energy policy.

One amendment will allow financing for initiatives to manage methane, one of the most potent greenhouse gases, and to reduce routine gas flaring in existing oil and gas fields, the multilateral lender said.

Another provision expands support for carbon capture, utilization, and storage (CCUS) projects that use depleted oil and gas wells to store carbon dioxide.

“Recognizing the crucial long-term role of CCUS, the ADB has been supporting CCUS technologies in power plants and other hard-to-abate sectors,” it added.

A further amendment highlights the ADB’s potential role in supporting the development of diversified and responsible critical minerals-to-manufacturing value chains, reflecting the bank’s commitment to sustainable and responsible energy and resource development.

“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 the ADB’s stakeholders,” it said.

Last year, the ADB committed around $3.8 billion to energy projects and has been supporting stronger policy and regulatory frameworks to boost private sector investments in response to the region’s growing energy demand.

In its energy policy review paper published earlier this month, seen by Manila Bulletin, the ADB cited its host country, the Philippines, among its developing member countries (DMCs) that have been considering nuclear power since 2021, alongside Kazakhstan, Uzbekistan, and Vietnam.

The policy paper said that “nuclear is an important technology option when considering the optimal energy mix of countries focusing on expanding and strengthening energy access to their populations.”

“The [then-proposed] amendment expands the ADB’s support for nuclear power, including but not limited to support for fostering an enabling environment for state-of-the-art nuclear power investments, while considering the lifecycle costs of such investments and addressing challenges related to safety, security, safeguards, regulatory capacity, waste management, decommissioning, and non-proliferation, among others,” the paper added.

“Also, interest has been expressed in MDBs [multilateral development banks] taking a greater role in nuclear power in the region, including promotion of best-available technologies and standards,” according to the ADB.

(Ricardo M. Austria)