Download Greening Asia`s Infrastructure Development

Greening Asia’s Infrastructure
Development
Herath Gunatilake
Director
Regional and Sustainable Development Department
Asian Development Bank
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Asia’s Infrastructure Investment
Requirements and Deficits
• Between 2009 and 2013, Asia Pacific region
accounted for more than 50% of the global
increase in capital spending on infrastructure
• The Asia Pacific infrastructure investment need
is expected to grow by 7% to 8% a year over
the next decade.
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Asia’s Infrastructure Investment
Requirements and Deficits
• Asia’s overall infrastructure investment
needs are estimated at $4.4 trillion for
2015 - 2020
– average infrastructure investment need of
about $730 billion per year
– 68% of which is for new capacity and 32%
of which is for maintaining and replacing
existing infrastructure
– ADB about $20 billion, may increase to about
$30 billion
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Asia’s Infrastructure Investment
Requirements and Deficits
• In addition to the overall national
infrastructure needs, $175 billion
investment is needed for regional
projects—with an average infrastructure
investment need of close to $30 billion per
year
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Estimate Infrastructure Needs in
Developing Asia (in US billion)
New Capacity
Replacement
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
-
Electricity
Telecommunication
Transport
Water and
Sanitation
Source: ADB and ADBI
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ADB’s Environment Operations
Directions
Environmentally sustainable growth as one of 3 development
agendas, and environment as a core area of operations
Promoting a
shift to
sustainable
infrastructure
Investing in
natural
capital
Strengthening
governance
and
management
capacities
Climate change (mitigation and adaptation)
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Asia’s Share of Global GDP, 1700-2050
An additional 3 billion Asians
achieve European living
standards by 2050
A. Clean Energy
Asia’s Energy Trilemma
• Accessibility: 600 million people without access to
electricity (and intermittent services for those who
have access)
• Affordability: costs of supply are high (or
unsustainable subsidies)
• Sustainability: air pollution and CO2 emissions
Developing Asia’s Share in Global CO2
Emissions from Energy Consumption
2010
Rest of
the World
63%
2035
Developing Asia
37%
47%
Rest of
the World
53%
In 1973: 9%
Source: ADB, APERC 2013
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ADB Energy Sector Vision
Affordable Clean Energy for All
Current
EE&RE
Future
Energy Efficiency
RE
Fossil fuels
Fossil
fuels
Investment Requirements:
BAU vs Alternative (2010-2035)
Cumulative Investment
($ trillion, 2006$ )
25.0
$ 19.9
trillion
20.0
15.0
Industry
Commercial
Demand side
additional
investment:
$7.3 trillion
$ 11.7
trillion
Residential
Transport
Distribution
10.0
Energy
Transportation
Supply side
investment:
$12.6 trillion
5.0
Transformation
Extraction/Produ
ction
0.0
BAU
ALT
Source: ADB, APERC 2013
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B. Sustainable Transportation
Problem of rapid motorization
Congestion
Air pollution
Rising GHG emissions
23% of global energy-related GHG
•
Transport is
emissions
•
Land transport is
•
Land transport GHG emissions to
2050
¾ of transport GHG emissions
based on current trend
double by
Unsafe roads
• 645,000 annual road deaths and 30
million injuries in developing Asia
• Leading cause of death for 15-44 year olds, 2nd
leading cause for 6-14 year olds
• Vulnerable users are 50–75% of deaths
• Costs 2-5% of GDP
Avoid-Shift-Improve Paradigm
Avoid
the need to
travel
Shift
to sustainable
modes
Improve
efficiency of
all modes
Lower congestion, emissions,
air pollution, road accidents,
respiratory & health problems
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STI priorities and targets
Sustainable transport systems
Accessible
Affordable
STI lending directions
Environment friendly
Safe
STI subsector lending targets
Mainstream sustainability in roads
Scale up 4 areas
100%
2000-09
2020
80%
•
•
•
•
Urban transport
Addressing climate change
Cross-border transport & logistics
Road safety & social sustainability
60%
40%
20%
0%
Road
Rail
Water
Urban
Transp
Air
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Asia’s Cities
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C. Sustainable Urban Development
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ADB’s approach
Addressing
Equity Issues
(Inclusiveness)
Providing appropriate
livelihood, service,
shelter, and
infrastructure
solutions to poor and
vulnerable
communities
Promoting Improved
Environment and
Resilience
(Green)
Developing resource
use-efficient and
climate changeresilient cities
Building the
Economy
(Competitiveness)
Providing strategic
physical, social and
institutional
infrastructure for
inclusive growth
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ADB’s Five Core Urban Areas
•
•
•
•
•
City Cluster Economic Development (CCED)
Urban transport
Waste management
Municipal finance
Urban renewal and slum rehabilitation
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Lessons/Challenges
• Infrastructure -opportunity for environment
management
• Greening is costly, reliable estimates of
benefits may help
• Technology transfer is challenging
• Making infrastructure resilient to natural
disasters
• Public resource are inadequate, private
investment PPPs are vital
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Thank you!
For more information:
http:www.adb.org
[email protected]
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