Asian Development Bank to End Coal, Oil and Gas Funding, Energy News, ET EnergyWorld
The Multilateral Development Bank, which focuses on eradicating poverty in Asia, has not provided any timeframe for its engagement. It also set out the conditions under which fossil fuel projects would continue to receive funding, for example when no other cost-effective technology was available.
Yongping Zhai, head of the AfDB’s energy sector, said the project would be discussed by its board in October.
Earlier this week, the green groups urged the AfDB to end lending to the entire fossil fuel sector.
“The draft coal ban policy is a decade behind schedule, but it still helps support the economic arguments in favor of energy transition with governments and investors, and will help avoid more stranded coal assets,” said Pedro H. Maniego Jr., Senior Policy Advisor at the Institute for Climate and Sustainable Cities.
“(…) If the Bank considers fossil gas as a bridge and a transitional fuel, it must stipulate an end,” he added.
Founded in the early 1960s and based in Manila, the AfDB has since funneled $ 42.5 billion into the energy sector across the region, it said on its website.