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REGIONAL PERSPECTIVES051to become the world's first carbon-neutral country.Advancements in technology can help developingcountries leapfrog the energy-intensive phase ofdevelopment that industrialised countries experiencedand bring them directly to cleaner solutions with lower GHG emissions. A study commissioned by theAsian Development Bank (ADB) and led by McKinsey &Company reveals that about half the global abatementpotential in 2020 is in developing Asia and 60 per centof this will require deployment of low-carbon technology. ADB is working with these and other countries in theregion - and in partnership with a wide array of otherdevelopment agencies, civil society organisations, andthe private sector - to bring about a transition to low-carbon economic development and to build resilience toclimate change. We have succinctly described ourclimate change programme as providing "innovativefinancing and financing for innovation". This may be abit simplistic - ADB's climate change programme ismulti-faceted - but it demonstrates the importance weplace on these two areas. Three emerging initiatives andone ongoing programme supported by ADB together withpartners illustrate how we are putting this into practice.First, with technical inputs from McKinsey & Company,we have successfully completed a feasibility study on an"Exchange to Transfer Low Carbon Technologies to Asiaand the Pacific" initiative. The initiative will aim toestablish a marketplace (or "exchange") to enable andaccelerate the transfer of these technologies tomanufacturers in Asia and the Pacific. The risks are highbut the benefits of success will be tremendous. Theoperating cost of the marketplace is estimated to beabout US$20 million over the initial three years before itstarts making a profit, but it would potentially acceleratethe deployment of these technologies by a year in 2020and four years by 2030. This will result in annualgreenhouse gas (GHG) abatement of about 75 milliontonnes (MT) by 2020, rapidly increasing to about 1,300MT by 2030 in ADB's developing member countries.Second, design of a fund to mobilise an estimatedUS$2 billion to US$5 billion from pension funds,sovereign wealth funds and private sector investors toinvest in low-carbon infrastructure assets and servicesin the Asia and Pacific region is about to get underway.The proposed "Climate Public Private PartnershipFund" would support seminal work led by HRH ThePrince of Wales and the University of CambridgeProgramme for Sustainability Leadership together withprivate sector leaders, including from "Pensions 8".Together with the United Kingdom's Department forInternational Development and the InternationalFinance Corporation, ADB aims to help establish thefund as an investment vehicle for resource efficientand low-carbon infrastructure and services. Third, an "Asia Climate Change and Clean EnergyVenture Capital Initiative" is being set up to provide earlystage finance and advisory assistance to help newtechnology products become more competitive andaffordable to the large consumer base in developing Asia. Fourth, the Climate Investment Funds (CIFs), approvedin mid-2008, are a collaborative effort among the fivemulti-lateral development banks and countries tobridge the financing and learning gap between now andthe achievement of a post-2012 global climate changeagreement. With pledges of over US$6 billion, the CIFspromote scaled-up, transformational change incountries around the world, including several in Asia.For countries in Asia and the Pacific - as indeed for othercountries around the world - so much of the climatechange challenge boils down to issues of security: securityof energy resources, security of food production, andsecurity of people. These are fundamental developmentconcerns. ADB will continue to support our developingmember countries, in concert with our partners, in anaggressive response to this major global challenge. n

ngoing climate change is an ominousscenario. Yet industry has enoughrevolutionary technologies to slow thischange, believes Siemens, the globalmarket leader in environmental technology. Thecompany is also a strategic collaboration partner infuture sustainable urban development projects,including the climate-neutral Masdar City in Abu Dhabi.The world's population is growing - and it is growingmost rapidly in the metropolises. Today, over half ofhumanity already lives in cities. This figure is likely toreach 70 per cent by 2050, when the number of peopleliving in cities will equal today's entire world population. As the number of urban inhabitants increases, so do theproblems. Traffic threatens to collapse, clean drinkingwater is becoming scarcer, and the energy demandcontinues to grow. It is also essential to cut emissions.Cities are the main sources of CO2 emissions. Theyaccount for 75 per cent of global energy consumptionand for 80 per cent of the greenhouse gas emissionsgenerated by human activity, primarily CO2. Thepolitical establishment has been addressing thisproblem for just under 20 years. The firstenvironmental summit, which took place in Rio deJaneiro in 1992, was followed by 15 climateconferences whose results have been regularly publiclycriticised for being insufficient. However, this criticismRight:Renewable energysources like wind powerand electric cars canbecome perfect partners- the renewables canguarantee thattransportation in thecities of the future will beenvironment-friendly, andthe cars can stabilise thepower grid by storingexcess energy in theirbatteries.Left: In China, the firsthigh-voltage directcurrent transmission linewith a world recordvoltage of 800,000 voltsdistributes electricalenergy with very highefficiency across 1,400kilometres. The core ofthe Siemens system arehuge transformers - eachas large as a house andweighing 350 tonnes.THE CITY OF THE FUTUREWILL BE GREENINNOVATION 052TECHNOLOGYOPETER LĂ–SCHER, PRESIDENT OF THE MANAGING BOARD AND CEO, SIEMENS AG