President Obama is offering a $6 billion investment in clean energy infrastructure in the Asia-Pacific region under the US-Asia Pacific Comprehensive Partnership for a Sustainable Energy Future.
The Partnership is being formed to drive investment in the region, and also to provide a ready export market for US companies and their technologies.
There are four regional priorities:
1. Renewables and cleaner energy
2. Markets and Interconnectivity
3. The emerging role of natural gas
4. Sustainable development
They plan to engage the private sector as well as partner with countries in the region to determine specific projects in the four priority areas.
"With an estimated $9 trillion needed in investment in electricity alone through 2035 to meet growing demand in the region, there is enormous potential for U.S. industry to play an important role in the region's energy future."
The US will provide up to $6 billion to support the Partnership:
- The Export-Import Bank of the United States will launch a program to make up to $5 billion in export credit financing available to countries in the region over the next four years to increase access to American technology, services and equipment for the implementation of energy infrastructure projects;
- OPIC will provide up to $1 billion in financing for sustainable power and energy infrastructure projects.
- U.S. Trade and Development Agency (USTDA) will support programs in partner countries in power generation, power distribution modernization, assistance with upgrading grid efficiencies to accommodate renewable power, and unconventional gas development.
- The U.S. State Department will oversee a $1 million energy capacity-building fund to support partnership activities via project preparation and technical assistance.
A couple of months ago, Asia-Pacific Economic Cooperation (APEC) - which consists of 21 countries - agreed to reduce import duties for green technologies that grow their economies. 54 technology categories are included, such as solar, wind, biomass and other renewable generation technologies, wastewater treatment, recycling and environmental monitoring systems.