ADB and AIIB Fossil Fuel and Gas Legacy in Asia

ADB’s carbon-intensive energy portfolio is rooted in its “clean” energy agenda being a grave misnomer. Although climate change is considered a vital policy issue, the Bank admits that not all of its clean energy investments are climate investments. Without a strict criterion for “clean” energy and a firm exclusion for the financing of coal projects, the 2009 Energy Policy enabled the Bank to make dirty commitments, providing a crutch for the next generation of advanced coal plants Among the many justifications for carbon-intensive projects under the 2009 Energy Policy were following: ` Energy efficiency, which includes improvements in fossil fuel-based power plants such as Circulating Fluidized Bed (CFB), flue gas desulfurization (FGD), Integrated Gasification Combined Cycle (IGCC), High-Efficiency, Low-Emission (HELE) or Supercritical and Ultra-supercritical Technology, Coal-to-Liquid (CTL), and Combined Heat and Power (CHP). ` The need for reliable and affordable energy, supposedly supplied by coal power plants, at least cost for baseload demand. ` Commercialization of the coal sector to ensure that coal plants have enough supply of coal for captive use. ` Funding marginal and already proven oil fields should the fields turn out to be commercial eventually. ` Maximizing access to energy for all is an all-encompassing justification for financing fossil fuels.