The Asian Development Bank (ADB) will invest US$ 15 million to support clean energy projects in the Greater Mekong Sub-region (GMS) and South Asia through the Mekong Brahmaputra Clean Development Fund. The fund will invest in companies engaged in renewable energy, energy efficiency, and water conservation and waste recycling projects. It expects to invest in at least 10 clean energy and environment projects by 2014. According to a statement from ADB, people in the GMS and South Asia have no access to modern forms of energy. In 2008, 83 percent of households in Cambodia, 80 percent in Laos, and over 50 percent in Vietnam still used wood for fuel, making it critical to increase sustainable energy investment. According to ADB, strong economic growth throughout Asia has already put substantial pressure on the region’s resources and is straining the environment. Further development of carbon-based power generation capacity, such as coal and oil, needs to be carefully evaluated to ensure that access to energy does not come at the price of steadily increasing greenhouse gases, contributing to global climate change. The fund has a target size of US$ 100 million and will be managed by Dragon Capita Clean Development Investment Ltd., a subsidiary of the Dragon Capital Group, which has longstanding experience in asset management in Vietnam. Other investors in the fund include the Belgian Investment Company for Developing Countries, the Finnish Fund for Industrial Cooperation, and the Netherlands Development Finance Company.
Source: Vientiane Times
