Strong economic growth in the East Asia and Pacific region has led to increased fossil fuel use and greenhouse gas emissions, making the area responsible for over a third of global emissions. To address this, the World Bank has launched a program focused on decarbonizing the power sector and expanding renewable energy.
The initiative uses the Multiphase Programmatic Approach (MPA), which aims to scale up renewables more effectively than individual country operations by building partnerships, creating momentum, and promoting economies of scale through national-level programs. Countries select specific activities aligned with their development goals while contributing to a broader regional effort. The program also seeks to mobilize private capital and encourage learning across phases.
Launched on September 24, 2024, the program provides $2.5 billion in IDA and IBRD financing to support policy development, strengthen institutions, finance transmission infrastructure for renewable integration, and de-risk clean energy investments to attract private sector participation. The MPA will remain active until 2034 and allows flexibility for adding projects as they become ready.
By 2034, the program aims to provide new or improved access to clean energy for 20 million people, enable 2.5 gigawatts of renewable generation capacity with a net reduction of 60 million tons of CO₂ emissions, and mobilize $1.5 billion in private investment for clean energy.
The MPA approach was chosen over stand-alone operations to leverage lessons learned across countries, streamline processes, strengthen regional partnerships, and create economies of scale that reduce clean energy costs. It also supports cooperation between World Bank entities such as IFC and MIGA to draw on private sector resources.
The first phase includes $260 million in investment projects in Papua New Guinea and the Republic of Marshall Islands. In Papua New Guinea, about 425,000 people are expected to gain new or improved electricity access with an estimated reduction of 437,000 metric tons of CO₂ emissions over the project’s lifetime; approximately eight megawatts of renewable capacity will be enabled. In the Republic of Marshall Islands, about eight megawatts are expected along with new or improved access for around 25,000 people; this is projected to reduce CO₂ emissions by about 250,000 metric tons during its lifetime.
Additionally, a $12.7 million grant implemented by the ASEAN Centre for Energy will promote cross-border electricity trade among ASEAN countries.
Subsequent phases have already secured an additional $1.25 billion in funding:
- In Mongolia: Projects aim to strengthen grid reliability enabling about 455 MW (and later another 150 MW) of renewables integration; these efforts are expected to reduce CO₂ emissions by approximately 19.2 million metric tons combined.
- In Federated States of Micronesia: The project targets improved reliability and expanded access with three megawatts enabled; around 32,000 people are expected to benefit alongside an estimated reduction of 107,000 metric tons CO₂.
- In Indonesia: Two projects focus on increasing sustainable electricity access—one targeting Kalimantan/Sumatra (540 MW enabled; access for about 3.5 million people; reduction of roughly 18.2 million metric tons CO₂) and another preparing Java-Madura-Bali’s grid (300 MW enabled; service for about 20 million people; reduction by about six million metric tons).
Any World Bank client country in East Asia or Pacific can join this program.
According to information from the World Bank, their work in East Asia focuses on supporting sustainable development through innovative financing models like this one.
"The MPA implies a cohesive continuous strategy that promotes replicable and scalable engagements," according to materials provided by the World Bank Group press office. "This is particularly beneficial for client countries facing the challenge of attracting private investment for their energy transition."
"A regional approach can help governments to scale up renewables more effectively than individual country operations by creating a longer-term strategic vision and commitment," according to official statements from World Bank representatives included in recent documentation regarding these initiatives.