The Asian Development Bank’s (ADB’s) Board of Directors has approved a new energy policy to help Asia and Pacific countries secure adequate energy supplies while cutting levels of greenhouse gas emissions.

The 2009 Energy Policy follows a review process that included wide-ranging consultations with energy experts, governments, civil society organizations, industry officials, academe and other stakeholders.

The region’s dramatic economic growth over the past few decades has lifted millions of people from poverty. Nearly a billion people still lack access to electricity and Asia’s energy needs are expected to double by 2030, presenting major supply and energy security challenges as well as accelerating climate change.

The new policy will help developing member countries provide reliable, adequate and affordable energy supplies to all citizens, as an integral part of ADB’s Strategy 2020 of promoting inclusive and environmentally sustainable growth. It also underpins ADB’s programs to address the rising threat of climate change.

In introductory remarks to the Board of Directors on Thursday, ADB Vice-President Ursula Schaefer-Preuss said it was appropriate that the Board discussion on the Energy Policy was taking place during the same week that ADB was hosting the High-Level Dialogue on Climate Change and the Asia Clean Energy Forum.

“The new Energy Policy paper comes at a critical time when ADB is scaling up its assistance to our developing member countries to enhance energy access and move toward climate resilient and low carbon economies,” the Vice President said.

ADB’s investments in the sector will focus on energy efficiency and renewable energy projects, along with expanding access to energy, particularly in remote rural regions where coverage remains limited. It will also support sector reforms, improved governance and capacity building. Starting in 2013, ADB will increase its target of clean energy investments to $2 billion a year from a previous target of $1 billion, in a bid to accelerate low-carbon growth and reduce greenhouse gas emissions in the region.

Among ADB’s many innovative clean energy investments are power transmission enhancement in Azerbaijan; wind power projects in the People’s Republic of China (PRC) and India; hydro power development in Bhutan, PRC and Viet Nam; plans for energy-efficient lighting for low-income households in the Philippines; and a biomass power plant in Thailand.

Implementation of the new Energy Policy will be guided by three pillars: Promoting energy efficiency and renewable energy; maximizing access to energy for all; and promoting energy sector reform, capacity building, and governance.

The new policy also stresses ADB’s continued financial and technical support for developers and sponsors of projects eligible for carbon credits under the Clean Development Mechanism of the Kyoto Protocol. It has two financing vehicles, the Asia Pacific Carbon Fund and the Future Carbon Fund for this purpose.