Asian Development Bank to invest $2bn a year in clean energy

The Asian Development Bank (ADB) has announced it is to double its annual spending on clean energy investments in Asia-Pacific to $2bn (£1.2bn).

The increase, which forms part of ADB's Energy Efficiency Initiative, will take effect from 2013.

Since last year the bank has budgeted $1bn a year to finance clean energy projects in developing member countries. However, investments in 2008 exceeded the allotted amount, totalling $1.6bn, and now the bank has moved to formally endorse future increases in clean tech investments.

However, ADB president Haruhiko Kuroda warned that wider investments will be required if the region is to successfully curb its expanding carbon footprint. "While $2bn annually is a significant commitment, this represents only a fraction of the region's financing needs in the area of clean energy," he said.

ADB said its clean tech investments to date include wind power projects in China and India, hydro-power developments in Bhutan, China and Vietnam, and a biomass power plant in Thailand.

Earlier this year, ADB provided a $31m loan to the Philippines which enabled the government to distribute 13 million compact fluorescent lights to homes and businesses. The move is expected to save about $100m in fuel costs and lead to the postponement of $450m-worth of energy investments.

The bank also established a $100m Future Carbon Fund last year to use carbon credits generated after 2012 to help fund clean energy projects in the Asia-Pacific.