Asia-Pacific economies told to invest more in ‘clean’ energy

Business World Online

Posted on 09:45 PM, November 02, 2010

SINGAPORE -- Asia-Pacific economies should invest in more "clean" energy projects, given the interest of funding agencies and the fact that much of the equipment for this technology is manufactured in the region.

WooChong Um, deputy director general of the Asian Development Bank’s (ADB) Regional and Sustainable Development Department (RSDD), said in his keynote address at the start here yesterday of the Clean Energy Expo Asia that Asia and the Pacific is instrumental in the global effort to cut greenhouse gas (GHG) emissions. "Countries like the Philippines and Indonesia will grow more and the region already contributes 30% of greenhouse gases. The Asia-Pacific region needs to step up in development of clean energy projects to help cut [GHG]," Mr. Um said.

He noted that "the Philippines in one of the leading governments in the region to use global initiatives, for example the Climate Investment Funds (CIF)."

"The Philippines is one of the countries selected because of the government’s willingness to really develop the renewable energy program," he noted.

The Philippines is now negotiating with the ADB for longer terms on clean energy loans of up to 40 years from the current 28 years with an eight-year grace period, Samuel Tumiwa, principal planning and coordination specialist of ADB’s RSDD, said in an interview at the sidelines of the expo.

The Philippines can access about $250 million of the multi-donor Clean Technology Fund (under the CIF) which the ADB manages with four other multilateral agencies, $125 million of which is for solar projects, Mr. Tumiwa said.

Besides multilateral lenders, banks have also joined "clean" energy financing bandwagon. In his speech, Richard Finlayson, head of Deutsche Bank’s Asia Asset Finance and Leasing Group, noted "there could be more activity by Asia-Pacific countries in ‘clean’ energy projects to entice international banks to finance projects because these banks are looking for big markets."

Energy Undersecretary Loreta G. Ayson said in an interview that the conference "is a call for the Philippines to look at ‘clean’ energy" with better focus.

In the Philippines, First Philec Solar Corp., a joint venture of First Philippine Electric Corp. and SunPower Philippines Manufacturing Ltd., makes silicon wafers for the solar energy industry. -- ENJD