THE Asian Development Bank (ADB) said it and Japan launched a joint initiative that will support countries and businesses in Asia and the Pacific grappling with rising energy prices.
“With energy markets under strain, countries need support that addresses immediate pressures while laying the groundwork for long-term resilience,” ADB President Masato Kanda said in a statement late Monday.
“We are grateful for Japan’s partnership in advancing this initiative, which will help businesses in our region stay afloat today while supporting the transition to stronger and more sustainable energy systems,” he added.
Launched at the ADB Annual Meeting, the Action for Creating Energy Security for Long-term Resilience (ACCEL) will combine financial support and investment to help countries manage immediate shocks and build stronger energy systems.
Japanese Finance Minister Satsuki Katayama said the initiative will leverage Japan’s knowledge and technology.
“This initiative aims to support small and medium-sized enterprises (SMEs) affected by the conflict, while promoting the transformation of energy structures in developing member countries,” she said.
“Japan will continue to work closely with ADB to advance crisis response efforts,” she added.
The ADB noted that many developing countries face acute pressures from fuel price volatility and supply constraints. The Philippines, as a net oil importer of crude oil, remains highly vulnerable to global crude price swings.
The country was placed in a one-year state of national energy emergency following the outbreak of fighting in Iran.
“SMEs are particularly affected, with rising operating costs and tightening liquidity conditions,” it added.
Through ACCEL, the ADB will provide short-term liquidity support to SMEs while promoting a medium- to long-term shift toward diversified and sustainable energy systems.
Planned measures included the deployment of financial intermediation loans, credit lines, guarantees, and policy-based loans “to channel support to enterprises facing increased funding needs and continue to help strengthen the enabling environment for SMEs.”
“These operations will help sustain business activity, protect jobs, and support economic stability in affected countries,” it added.
The initiative also aims to scale up investment in renewable energy, energy efficiency, and conservation projects.
Japan, through its ADB-administered trust funds, will help accelerate project preparation, implementation, and knowledge support.
“It will also coordinate with its development finance institutions such as the Japan International Cooperation Agency (JICA) and the Japan Bank for International Cooperation (JBIC) to enhance synergies, ensure complementarity, and maximize development impact,” the ADB said. — Justine Irish D. Tabile
