The Asian Infrastructure Investment Bank (AIIB), the Multilateral Cooperation Center for Development Finance (MCDF) and the Asian Development Bank (ADB), hosted the two-day seminar of the Environmental and Social Safeguards Community of Practice (CoP) on managing environmental and social risks of wind power projects at ADB Headquarters in Manila, Philippines on 27 and 28 June 2023. The seminar, which also accommodated participants online, brought together experts and practitioners from international financial institutions (IFIs), governments, the private sector and academia to discuss the opportunities and environmental and social issues of wind power investments.

The seminar, on the first day, featured panel discussions on the past, present and future of wind power, the impacts of wind farms on community health and safety, and the environmental risks and impacts of offshore wind farms. The second day examined the social risks and impacts of onshore wind farms, and the shared experiences of IFIs, closing with a summary of key lessons learned.

Representing the host country, Mr. Mark Dennis Joven, Undersecretary of the Department of Finance of the Philippines, highlighted the tremendous potential for wind power, stating that "The [Philippine] national renewable energy program plans on expanding the current wind energy capacity, especially through offshore wind power projects which can capitalize on the estimated 178 GW technical offshore wind potential in the country." He also mentioned changes in policy to enable investment in renewable energy by lifting caps on foreign ownership of wind power, and thanked the co-hosts AIIB, MCDF and ADB for their strong support for the Philippines’ sustainable development agenda.

ADB's Vice President for Administration and Corporate Services, Mr. Bruce Gosper shared ADB's significant investments in wind energy projects, such as partnering with AIIB on the first and largest cross-border wind power project in Southeast Asia and supporting the first large-scale wind project with integrated battery storage in Thailand. But he also stressed the importance of addressing the environmental and social impacts of these projects, acknowledging challenges such as rising component costs, financial issues within electricity companies, and land acquisition. "By improving the way social and environmental impacts of wind projects are handled, we can move the wind power industry forward together,” Mr. Gosper noted.

MCDF's Chief Executive Officer, Mr. Zhongjing Wang, supported this view and stressed the importance of carefully managing the environmental and social risks associated with wind power projects. Mr. Wang emphasized that “We cannot forget the “S” of the Sustainable Development Goals (SDGs). If projects are not developed using high-quality environmental, social, and sustainability standards, their development impact will be jeopardized." He also emphasized MCDF's dedication to high-quality infrastructure investments in developing countries, guided by the principles of partnership, quality, and connectivity.

AIIB's Director General of Operational Services Department, Mr. Yanning Wang, also pointed out the need for a wide set of stakeholders to work together to address the sustainable development challenges of AIIB’s client countries, saying that IFIs “have a robust set of standards, but the application also lies in the hands of all the professionals from different counterparties."

In his keynote address, Mr. Ede Ijjasz, Senior Advisor to the CEO of MCDF outlined the various environmental and social risks and challenges facing wind power projects. He then stressed the importance of the event, stating "I am convinced that it is this community of environmental and social specialists who will either make or break the opportunity of wind energy to achieve the net zero transitions that many countries have in place."

The seminar was the first of its kind under AIIB’s Capacity Building and Knowledge Sharing: Environmental and Social Safeguards project, with funding from MCDF’s Finance Facility. MCDF will continue to support AIIB in organizing future events in collaboration with MDB peers to address various environmental and social issues in different sectors. These events will also enrich the MDB Community of Practice, launched by the World Bank, International Finance Corporation, ADB, and other development partners with support from the Australian Government back in 2016.