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January 15 , 2011

Economics of Reducing Greenhouse Gas Emissions in South Asia


Against a backdrop of increasing emission of greenhouse gases (GHGs) that are responsible for global climate change, the South Asia developing member countries (DMCs) of the Asian Development Bank have been witnessing a steady rise in fossil fuels and energy consumption and demand, keeping pace with their economic growth. The region’s major challenge is how to achieve sustained and rapid economic growth for reducing poverty while reducing the overall intensity of energy use, increasing energy efficiency, and substituting to cleaner energy. This report synthesizes the results of national studies on options and costs of reducing GHG emissions in five South Asia DMCs—Bangladesh, Bhutan, the Maldives, Nepal, and Sri Lanka. It examines the economics of cleaner technologies that promote low-carbon development and climate change mitigation, identifies constraints and barriers that reduce incentives to invest in GHG emission-reducing technologies, and recommends actions andenabling conditions to overcome the barriers.

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