Thursday, 23 March 2017
Last updated 1 hour ago
Apr 21 2008 | 9:34am ET
The Asian Development Bank is committing up to US$100 million in seed capital to five private equity funds with a total target investment of up to US$1.2 billion in clean energy projects in Asia.
The funds—MAP Clean Energy Fund, China Environment Fund III, GEF South Asia Clean Energy Fund, Asia Clean Energy Fund, and China Clean Energy Capital—will each receive up to $20 million in capital from ADB. The funds were selected from 19 fund managers responding to ADB’s request for proposals, issued in July 2007.
“ADB believes the success of these funds will help demonstrate the credibility of private equity in the emerging clean energy sector in developing Asia, and mobilize capital to support other private equity funds,” said Mu-Shin Kim, investment specialist in ADB’s private sector operations department.
By 2030, global energy demand will likely rise 53% from current levels, and developing Asia represents a large portion of it, according to the bank. The energy investment in Asia is strongly carbon-intensive, or highly dependent on coal-fired power generation.
“Significant resources need to be invested into clean energy and low-carbon investment alternatives over the next few decades,” said Kim.