Hello! Countries across Asia are uniting to support nations struggling with high costs due to soaring fuel and energy prices in the wake of the Iran war.
The Asian Development Bank said it was ready to deliver urgent help to countries in the Pacific region, which have been rattled by the conflict and resulting fuel shortages.
Before we get into the ADB’s announcements, here are some top human rights stories that are on my radar:
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THAILAND HIT BY IRAN WAR ENERGY CRISIS
The conflict has sent global oil prices well above $100 a barrel, sharpening the focus on Asia's reliance on energy supplies from the Gulf.
Reuters reporting shows around 80% of oil shipped through the Strait of Hormuz heads to Asian buyers.
Finance leaders of China, Japan, South Korea and the ASEAN group of 10 Southeast Asian states said they would pay attention to risks stemming from excessive volatility in financial markets and stand ready to act if needed.
ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
Thailand is among the most exposed, with the Middle East supplying nearly half of its oil and gas, according to Krungsri Research.
Unlike many of its peers in the region, Thailand's exposure runs deeper than just fuel costs as over half of annual power output comes from gas, and liquefied natural gas (LNG) imports are accounting for an increasing share of generation. Click here for a Reuters deep-dive on how the Iran war affects Thailand’s economy.
Additionally, Vietnam has been bracing for oil shortages caused by the U.S.-Israeli war on Iran and subsequent export bans from energy suppliers.
$70 BILLION PROGRAMME TO EXPAND ENERGY
It’s no surprise that energy was on the top of the agenda at the ADB meeting.
ADB President Kanda said energy and digital connectivity would underpin the region's long-term growth as demand rises and technological change accelerates.
The plan includes $50 billion for a new Pan‑Asia Power Grid Initiative (PAGI) and $20 billion for technology and digital connectivity projects, the bank said.
Under PAGI, ADB aims to integrate about 20 gigawatts of renewable energy across borders, build 22,000 circuit-kilometres of transmission lines and improve electricity access for 200 million people by 2035.
It also expects the initiative to cut regional power-sector emissions by around 15%.
TALKING POINTS
ESG SPOTLIGHT
Today’s spotlight showcases a fun and community-driven event in South Korea’s capital, Seoul, to help get its overworked citizens some much-needed rest.
