1. Greening Asia’s Infrastructure Development 1 Herath Gunatilake 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. 2

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 3

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 4

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

6. ADB’s Environment Operations Directions 6 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)

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

8. 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 A. Clean Energy

9. Developing Asia’s Share in Global CO2 Emissions from Energy Consumption 9 Rest of the World 53% Rest of the World 63% Developing Asia 37%47% 2010 2035 Source: ADB, APERC 2013 In 1973: 9%

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

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

12. Problem of rapid motorization B. Sustainable Transportation

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 ¾ of transport GHG emissions Land transport GHG emissions to double by 2050 based 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, 2 nd leading cause for 6-14 year olds Vulnerable users are 50–75% of deaths Costs 2-5% of GDP

17. Avoid the need to travel Shift to sustainable modes Improve efficiency of all modes Avoid-Shift-Improve Paradigm Lower congestion, emissions, air pollution, road accidents, respiratory & health problems 17

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

19. Asia’s Cities 19

20. C. Sustainable Urban Development 20

21. ADB’s approach 21 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 change- resilient cities Building the Economy (Competitiveness) Providing strategic physical, social and institutional infrastructure for inclusive growth

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

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 23

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