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Greening Asia’s Infrastructure Development

Greening Asia’s Infrastructure Development. Herath Gunatilake Director Regional and Sustainable Development Department Asian Development Bank. Asia’s Infrastructure Investment Requirements and Deficits.

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Greening Asia’s Infrastructure Development

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  1. Greening Asia’s Infrastructure Development HerathGunatilake Director Regional and Sustainable Development Department Asian Development Bank

  2. 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.

  3. 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

  4. 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

  5. Estimate Infrastructure Needs in Developing Asia (in US billion) Source: ADB and ADBI

  6. ADB’s Environment Operations Directions Environmentally sustainable growth as one of 3 development agendas, and environment as a core area of operations Climate change (mitigation and adaptation)

  7. Asia’s Share of Global GDP, 1700-2050 An additional 3 billion Asians achieve European living standards by 2050

  8. Asia’s Energy Trilemma A. Clean Energy 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

  9. Developing Asia’s Share in Global CO2 Emissions from Energy Consumption 2010 2035 Developing Asia Rest of the World53% Rest of the World63% 37% 47% In 1973: 9% Source: ADB, APERC 2013

  10. ADB Energy Sector Vision Affordable Clean Energy for All Current Future Energy Efficiency EE&RE RE Fossil fuels Fossil fuels

  11. Investment Requirements: BAU vs Alternative (2010-2035) Source: ADB, APERC 2013

  12. B. Sustainable Transportation Problem of rapid motorization

  13. Congestion 2-5% of GDP

  14. Air pollution 2-4% of GDP

  15. Rising GHG emissions • Transport is 23% of global energy-related GHG emissions • Land transport is ¾of transport GHG emissions • Land transport GHG emissions to double by 2050based on current trend

  16. 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

  17. Avoid-Shift-Improve Paradigm Lower congestion, emissions, air pollution, road accidents, respiratory & health problems

  18. STI priorities and targets Sustainable transport systems Environment friendly Safe Accessible Affordable STI lending directions STI subsector lending targets Mainstream sustainability in roads Scale up 4 areas • Urban transport • Addressing climate change • Cross-border transport & logistics • Road safety & social sustainability

  19. Asia’s Cities

  20. C. Sustainable Urban Development

  21. ADB’s approach Addressing Equity Issues (Inclusiveness) Providing appropriate livelihood, service, shelter, and infrastructure solutions to poor and vulnerable communities Building the Economy (Competitiveness) Providing strategic physical, social and institutional infrastructure for inclusive growth Promoting Improved Environment and Resilience (Green) Developing resource use-efficient and climate change-resilient cities

  22. ADB’s Five Core Urban Areas City Cluster Economic Development (CCED) Urban transport Waste management Municipal finance Urban renewal and slum rehabilitation

  23. 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

  24. Thank you!For more information:http:www.adb.orghgunatilake@adb.org

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