NDF - Financing for climate change and development projects

NDF supports regional bio-energy project in Asia

17.12.2010

The NDF Board approved on its meeting December 14 2010 a EUR 3.1 million grant to promote renewable energy based on locally available biomass resources in ways that are not only cost effective but also contribute to climate change mitigation and adaptatio

In the Greater Mekong (GMS) region, over 255 million people living in rural areas have limited access to modern forms of energy.  Large numbers of people in Laos (92%), Cambodia (85%), and Vietnam (56%) continue to rely on fuel wood and agricultural waste for their lighting and cooking needs. The indoor air pollution impacts and related health effects are significant, while the burning of biomass in open field and in traditional cooking stoves is a source of significant greenhouse gas emissions. In addition to the problem of energy insecurity, food security in the GMS region is threatened by its deteriorating resource base, with unsustainable harvesting of biomass for fuel causing significant environmental damage in the form of soil erosion, deforestation, and threats to water resources and biodiversity. Over 40% of arable land in GMS countries is degraded and in need of urgent remediation. However, rural renewable energy sources and technologies still have untapped potential in the GMS where the supply of biomass residues remains abundant. The conversion of biomass to energy in a sustainable and more efficient way can help diversify livelihoods and increase rural incomes, while replacing the need for fossil fuel-based energy. It also makes a contribution to environmental remediation by reducing deforestation and greenhouse gas emissions, and by returning organic matters into the soil.  The NDF support will build capacity and pilot test new pro-poor and climate-friendly bioenergy to be scaled up as investment projects in the three GMS countries, Cambodia, Laos, and Vietnam. The proposed Technical Assistance of approximately EUR 3.0 million is the first phase in the development of what will eventually be a EUR 60 million loan/grant by ADB to the three governments.

More information
Climate-Friendly Bioenergy in the Greater Mekong Subregion