The Asian Development Bank (ADB) has approved updates to its energy policy to strengthen its commitment to expanding energy access and improving energy security across Asia and the Pacific. ADB President Masato Kanda emphasized that the changes enhance the Bank’s ability to support developing member countries in meeting rapidly growing energy demands, highlighting nuclear power as a reliable option for baseload electricity.
For the first time, ADB will be able to support nuclear power projects, subject to rigorous assessments and adherence to the highest safety, security, and environmental and social standards. The Bank will collaborate closely with the International Atomic Energy Agency (IAEA) and other international authorities to ensure developing countries pursuing nuclear energy follow best practices and comply with stringent standards. An agreement with the IAEA is expected to be signed soon to advance these objectives.
The updated policy also allows ADB to finance projects that manage methane emissions and curb routine gas flaring in existing oil and gas fields, addressing one of the most potent greenhouse gases. Additionally, the Bank will expand support for carbon capture, utilization, and storage (CCUS) projects to include the use of depleted gas and oil wells for carbon dioxide storage.
A new policy provision recognizes ADB’s potential role in supporting diversified and responsible critical minerals-to-manufacturing value chains, reflecting the Bank’s commitment to sustainable and innovative energy solutions. These updates are part of a scheduled review of the 2021 energy policy and were informed by extensive stakeholder consultations.
In 2024, ADB committed approximately $3.8 billion to energy projects and has been actively strengthening policy and regulatory environments to attract private sector investments, helping member countries meet increasing energy demand. Founded in 1966 and owned by 69 members, including 50 from the region, ADB is a leading multilateral development bank dedicated to promoting inclusive, resilient, and sustainable growth across Asia and the Pacific.
