ADB updates energy policy to enhance access and security

The changes allow the bank to back nuclear power development.

The Asian Development Bank (ADB) has introduced changes to its energy policy to fuel efforts to increase energy access and improve energy security.

According to ADB, the changes pave the way for the bank to support nuclear power, including investments for the first time.

“ADB support for developing member countries that choose to pursue nuclear power will be subject to rigorous assessments and the highest standards of safety, security, and environmental and social safeguards,” the bank said.

ADB said it will work with the International Atomic Energy Agency (IAEA) and other international authorities to help ensure member countries follow the best practices and comply with stringent standards on nuclear power.

The amendments also include allowing the bank to support projects that manage methane.

“Recognising the crucial long-term role of carbon capture, utilisation, and storage (CCUS), ADB has been supporting CCUS technologies in power plants and other hard-to-abate sectors. A third change extends this support to CCUS projects that use depleted gas and oil wells to store carbon dioxide,” ADB said.

The fourth amendment, which is an addition to the policy, recognises ADB’s potential role in enabling the development of diversified and responsible critical minerals-to-manufacturing value chains.

In 2024, ADB committed about $3.8b to energy projects. The bank has also been helping to strengthen policy and regulatory environments for stronger private sector investments to meet the region’s rapidly increasing energy demand.