A new World Bank program aims to help developing countries in East Asia and the Pacific increase their renewable energy capacity. The $2.5 billion initiative is part of a global effort to accelerate the transition to low-carbon energy and combat climate change.
The Accelerating Sustainable Energy Transition Program is expected to reduce greenhouse gas emissions by 60 million tons over its lifetime. It will provide over 20 million people with new or improved access to clean electricity, adding 2.5 gigawatts of renewable energy capacity, which is equivalent to 50 utility-scale solar farms or more than 1,000 wind turbines.
East Asia accounts for over a third of global greenhouse gas emissions. Reducing carbon intensity in this fast-growing region is crucial for achieving global climate mitigation goals. Several national governments have set ambitious targets to reduce emissions and improve climate resilience.
"The transition to low-carbon energy in East Asia and the Pacific is vital for achieving climate and development goals," said Manuela V. Ferro, World Bank Vice President for East Asia and Pacific. "This program is part of the World Bank's global effort to combat climate change through an accelerated energy transition. Other development partners are expected to join this platform for financing and knowledge to scale up impact.”
The program leverages expertise from across the World Bank Group and its development partners to advise countries on clean energy adoption, deploy proven renewable energy technologies at scale, upgrade transmission infrastructure, promote regional power trade of low-carbon electricity, and use innovative financing mechanisms to de-risk private-sector investments.
The initial phase includes $260 million in World Bank grants and credits aimed at increasing access to renewable energy in Papua New Guinea and improving electricity service reliability in the Republic of Marshall Islands. Additionally, a $5 million grant will be implemented by the ASEAN Centre for Energy to accelerate renewable energy scale-up and foster cross-border electricity trade among ASEAN countries. Future phases will support Cambodia, the Federated States of Micronesia, Indonesia, and Mongolia.
This program follows similar initiatives focused on Eastern and Southern African countries, as well as nations in Europe and Central Asia, highlighting the World Bank’s commitment to expanding energy access and accelerating low-carbon transitions globally.
The projects employ a multiphase programmatic approach that allows countries to select activities tailored to their specific development goals while being part of a broader regional effort. This design enables forward-looking learning and adaptation based on lessons learned from previous phases.