Economics of Reducing Greenhouse Gas Emissions in South Asia. Options and Costs

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 and
enabling conditions to overcome the barriers.