The Asian Development Bank (ADB) will no longer finance oil and coal extraction projects and will restrict natural gas funding, the bank announced in its draft energy policy released last Friday.
“ADB will not finance any coal mining, oil and natural gas field exploration, drilling or extraction activities. ADB will not finance any new coal-fired capacity for power and heat generation, or any facilities associated with new coal generation,” the bank stated.
However, under certain conditions, the bank would provide funds for liquefied natural gas projects, gas transmission infrastructure, gas distribution pipelines and gas-fired power generation plants, according to the draft document.
Set up in the early 1960s and headquartered in Manila, the ADB has funneled $42.5 billion into the energy sectors between 2009 and 2019, it said on its website.
A final draft of the Energy Policy 2021 will be submitted for consideration to ADB’s board of directors by October.