ADB vice-president Geert van der Linden said rising concerns about energy needs, costs and security called for new ways of thinking about sources and use of energy.

“Thus, we see renewed efforts to reduce energy intensity, and to develop renewable and new alternative energy sources," he said.

Van der Linden said the adoption of biofuels, hydrogen-fuel and hybrid technologies in automotives would go a long way towards putting developing Asia on a more sustainable footing, addressing environmental impacts at a local and global level.

The ADB has established several trust funds to support renewable energy, efficiency programs and climate change mitigation, with up to 20% of the ADB’s cumulative lending – worth some $A29.15 billion – directed to energy projects in the region.

However, van der Linden said a coordinated effort from governments, producers, consumers, regulators and the development community was necessary.

“Given the diversity of supply and use of energy resources in different countries, there is also growing recognition of the benefits of a regional approach to developing electricity markets, promoting energy trade and creating regional power grids,” he said.

ADB is also developing a carbon market initiative under the Kyoto Protocol’s Clean Development mechanism to support developments that address climate change.