ADB to increase support for clean-energy development
LONDON: The Asian Development Bank (ADB) will increase its support for clean-energy development by injecting up to $40 million into two new private-equity funds investing in promising regional green companies and projects.
Its board of directors has approved equity investment of up to $20 million each in the Singapore-based Clean Resources Asia Growth Fund and the UK-based Renewable Energy Asia Fund. The former invests in Asian clean-energy technology companies focused, while the latter invests primarily in renewable energy projects in India and the Philippines.
"The impact of these funds will be increased contributions from investee companies for sustainable economic growth and greenhouse gas emission reductions in the ADB's developing member countries," said Robert van Zwieten, director of the ADB's Private Sector Operations Department (PSOD).
Asia's booming economies and surging demand for clean power to strengthen energy security and reduce pollution as well as ongoing sector reforms in many countries are making the continent one of the most attractive destinations for environmentally friendly investments. China, India and the Philippines show the most promise.
The ADB has been an active participant in clean-energy funds for several years, helping to position the funds as a new asset class in Asia. These latest equity investments follow the screening of more than a dozen funds in the sector that have approached ADB over the past two years. The Clean Resources Asia Growth Fund - sponsored by CLSA Capital Partners, a brokerage and investment group active in Asia since 1986 - will target businesses engaged in cleanenergy operations in Asia, with the main focus in China and India. -PB News