| Project Detail |
The regional knowledge and support technical assistance (TA) aims to support the South Asia region in transitioning from fossil fuels to carbon-free green fuels_ such as advanced biofuels and green hydrogen as well as green ammonia. As the energy sectors regional cooperation and integration, the TA will launch Green Fuel Development Initiative under the South Asia Subregional Economic Cooperation (SASEC) platform, which covers seven countries including Bangladesh, Bhutan, India, Maldives, Myanmar, Nepal, and Sri Lanka. This initiative frameworks were endorsed by the SASEC energy working group meeting and its nodal officers meeting in June 2022. The TA will assess each countrys and the regions market potential for various types of green fuels across multiple sectors including energy, transport, manufacturing, agriculture, and others. Transnational supply and value chains will also analyzed.
Project Name South Asia Subregional Economic Cooperation Green Fuel Development Initiative
Project Number 56096-001
Country / Economy Regional
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 10020-REG: South Asia Subregional Economic Cooperation_Green Fuel Development Initiative
Japan Fund for Prosperous and Resilient Asia and the Pacific US$ 2.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector
Energy / Renewable energy generation - biomass and waste
Gender Equity and Mainstreaming Some gender elements
Description The regional knowledge and support technical assistance (TA) aims to support the South Asia region in transitioning from fossil fuels to carbon-free green fuels_ such as advanced biofuels and green hydrogen as well as green ammonia. As the energy sectors regional cooperation and integration, the TA will launch Green Fuel Development Initiative under the South Asia Subregional Economic Cooperation (SASEC) platform, which covers seven countries including Bangladesh, Bhutan, India, Maldives, Myanmar, Nepal, and Sri Lanka. This initiative frameworks were endorsed by the SASEC energy working group meeting and its nodal officers meeting in June 2022. The TA will assess each countrys and the regions market potential for various types of green fuels across multiple sectors including energy, transport, manufacturing, agriculture, and others. Transnational supply and value chains will also analyzed. Based on the studies, the TA will also identify immediate applications of green fuels to help design pilot project schemes for demonstration purposes in selected countries. Subject to each countrys conditions and requirements, development strategies and roadmaps will be provided in both countrys and regions contexts. Eventually, various capacity and knowledge activities can be integrated to increase awareness of stakeholders on development and promotion of green fuels.
Project Rationale and Linkage to Country/Regional Strategy
Energy security. All the South Asian countries are net oil importers, and are expanding the use of natural gas and liquidated petroleum gas. Since the conflict between the Ukraine and Russia, global fuel prices have been soaring and the local fuel demand and supply situation has drastically been impacted. This fundamental commoditys market change has triggered inflationary effects rapidly on overall economies across the countries and has raised the immediate energy security concerns.
Climate change. In many SASEC member countries, most of power generation is still dependent on thermal power plants with conventional fossil fuelspetroleum, natural gas, and coal. Other energy usage for transport, industry, and agriculture largely relies on fossil fuels. The emissions from these sectors are increasing along with economic growth and fossil fuels cater to the majority of the greenhouse gas emissions.
Green recovery. The green fuel development is expected to have a transformational effect on the domestic and regional economy through a new market creation. In the long run, it will contribute to green industry and local job creation. This is because these alternative fuels can be used for extensive industries.
Impact
Usage of green fuels increased in multiple sectors across the SASEC countries |
