Asia To Account For Two-Thirds Of Greenhouse Gas Emissions By 2010

Manila, Philippines (AHN) - Easing greenhouse gas emissions cannot cope with overall energy growth in Asia, according to the Asian Development Bank (ADB). Only 2 percent of the total electricity generated in Asia comes from renewable sources - partly because of the investment risks involved, the ADB said.

Renewable energy and efficient technologies are seen by private investors as too new and too risky and are not willing to provide equity finance or seed capital, the Manila-based development bank said.

"By 2010, Asia is expected to account for nearly a third of global greenhouse gas emissions, so to slow that down, increases in investment in renewable energy, energy efficiency and other clean technologies are needed," said Mu Shin Kim, Investment Specialist of ADB's Private Sector Operations Department.

The Asian Development Bank (ADB) and the United Nations Environment Programme (UNEP) are developing a Seed Capital Assistance Facility that will be funded by a $4.2 million grant to help developing countries in the region fund projects and programs that reduce greenhouse gas emissions.

The facility, jointly managed by ADB and UNEP, will provide technical assistance to private equity fund managers and entrepreneurs to develop sustainable clean energy funds and financing.