BAKU, Azerbaijan, Sept.21
By Leman Zeynalova – Trend:
The Asian Infrastructure Investment Bank (AIIB) and the International Renewable Energy Agency (IRENA) will together support Asia’s energy transition and mobilize greater private capital for renewable energy, Trend reports with reference to IRENA.
The sides signed a memorandum of understanding (MOU), under the terms of which they agreed to scale-up their efforts to unlock capital and accelerate the uptake of renewable energy by AIIB members.
Today, Asia is home to about 60 percent of the world’s population and contributes to almost 50 percent of global energy-related greenhouse gas emissions, according to IRENA. The region accounts for nearly half of global renewable-energy capacity, according to IRENA, up from less than one-third a decade ago. However, relative to its size, Asia still lags behind, with renewables accounting for less than 15 percent of total primary energy consumption in 2020.
Furthermore, developing countries in Asia are expected to account for about two-thirds of global energy growth by 2040. With its vast wealth of affordable and sustainable energy resources, such as hydropower, wind and solar, it is essential that this growth is met by renewable energy capacity.
Under its Corporate Strategy, AIIB will aim at reaching or surpassing by 2025 a 50 percent share of climate finance in its actual financing approvals, reflecting its commitment to support the Paris Agreement. Its Sustainable Energy for Asia Strategy (2017) also sets out a clear framework for how the Bank will invest in energy projects that increase access to clean, safe, affordable and reliable energy for millions of people across Asia.
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