The Impact of Nationally Determined Contributions on the Energy Sector: Implications for ADB and Its Developing Member Countries

Abstract

In Asia and the Pacific, 38 developing member countries (DMCs) of the Asian Development Bank (ADB) have committed to take mitigation actions through nationally determined contributions (NDCs) under the Paris Agreement. The Agreement aims to cap the increase in global average temperature to below 2°C. Country signatories have made NDCs to reduce greenhouse gas emissions under the Agreement. This paper analyzes implications of the Agreement for the energy sector; assesses the impact of NDCs on the energy sectors of DMCs; and explains the challenges and opportunities in implementing NDCs. The paper examines technology solutions, financing needs, and policy frameworks to accelerate energy transition and reach the NDC targets; and how ADB could support implementation of these NDCs.