20 million people will now have new or improved access to clean energy
WASHINGTON, September 24, 2024 - A new World Bank program will help developing countries across East Asia and Pacific ramp up renewable energy generation. The program will help them achieve their development goals while lowering carbon intensity. The $2.5 b program is as part of the Bank's global effort to accelerate low-carbon energy transition and combat climate change.
The $2.5 billion Accelerating Sustainable Energy Transition Program will contribute to reducing greenhouse gas emissions by 60 million tons over its lifetime, while providing over 20 million people with new or improved access to clean electricity. The program will add 2.5 gigawatts of renewable energy capacity - equivalent to 50 utility-scale solar farms or more than 1,000 wind turbines.
East Asia accounts for over a third of global GHG? Emissions. Reducing carbon intensity of growth in this fast-growing region is critical to achieving global climate mitigation objectives. several national governments have set ambitious targets to reduce emissions and improve their climate resilience. This program will help countries implement their climate goals.
The transition to low-carbon energy in East Asia and the Pacific is vital for achieving climate and development goals," said Manuela V. Ferro, World Bank Vice President for East Asia and Pacific. "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 new program draws on the expertise and knowledge from across the World Bank Group and its development partners to advise countries on actions to spur clean energy adoption, deploy at scale proven renewable energy technologies, develop and upgrade transmission infrastructure to enable the integration of variable renewable generation, promote regional power trade of low-carbon electricity, and use innovative financing mechanisms to de-risk private-sector investments.
The initial phase of this Program will include a US$260 million World Bank grants and credits aimed at increasing access to renewable energy and enhancing the reliability of the electric supply in Papua New Guinea, as well as boosting renewable energy generation and improving the reliability and quality of electric service in targeted islands of the Republic of Marshall Islands. Additionally, the program features a US$5 million grant, to be implemented by the ASEAN Centre for Energy, to accelerate the scale-up of renewable energy and foster cross border electricity trade among ASEAN countries. Future phases of the Program are being prepared to support Cambodia, the Federated States of Micronesia, Indonesia, and Mongolia.
The Accelerating Sustainable Energy Transition Program follows similar initiatives focused on Eastern and Southern African countries, and nations in Europe and Central Asia, underscoring the World Bank's global commitment to accelerate the low-carbon transition of energy systems.
The projects follow a multiphase programmatic approach, an evolved model of doing business that can scale the impact of World Bank knowledge and financing commensurate with the challenge. Through this design, countries select activities from a menu-based approach to help them achieve their specific development goals while being part of a broader regional effort. It also allows Bank clients to match borrowing more closely with financing needs. At the program level, the approach encourages forward-looking learning and adaptation, as subsequent phases will be informed by lessons learned in previous ones.
