TOKYO -- The Asian Development Bank will team with Japanese companies to establish a roughly $750 million fund investing in Asia's alternative energy industry.

     Asia Climate Partners will be the first ADB fund investing in the environmental industry to be run jointly with Japanese financial institutions. Participants include Bank of Tokyo-Mitsubishi UFJ and Orix, with Sompo Japan Nipponkoa Insurance recently deciding to join as well. The use of public-private support to cultivate environment-related industries in Asia is expected to expand the market for Japanese businesses' technology.

     Participation is sought from a wide range of companies, including regional banks and overseas financial institutions. 

     Asia Climate Partners will use ADB's connections and information network to find promising investments. It will distribute money over five-year periods and recoup investments over 10 years.

     The fund will invest mainly in China and India, financing projects such as low-emissions power generation, including hydropower, solar, wind and biomass; biofuel production; and water and sewer infrastructure, which helps with water recycling.

     The rapid economic growth enjoyed by Asian countries has brought with it severe power shortages and serious environmental issues. With considerable room for growth seen in the environmental industry, the money from Asia Climate Partners is expected to attract even more investment.

(Nikkei)