AIIB will issue its first climate resilience bond next year with green infrastructure one of its four thematic priorities

The Asian Infrastructure Investment Bank (AIIB) has joined the Coalition for Climate Resilient Investment (CCRI). CCRI supports investors and policy makers to better understand and manage physical climate risks.

“Cooperation with CCRI will help AIIB deepen its expertise in climate risk management and enable the Bank to be part of a wide network of professional organisations that promote climate-resilient infrastructure investments,” said AIIB vice president for Policy and Strategy Danny Alexander.

“Maintaining true momentum on climate action requires the whole human society—across industries, continents and borders—to work together on impactful initiatives and projects.”

CCRI executive director Carlos Sanchez said: “By bringing together industries and leaders across the finance and investment world, CCRI is pioneering solutions that are both innovative and practical to ensure infrastructure investments incorporate physical climate risks and advance climate resilience.

“We welcome multilateral partners like AIIB to join us and contribute its rich experience in climate financing for the benefit of our members.”

As a collaborative platform, CCRI allows members to develop innovative and practical methodologies to advance climate resilience in infrastructure investments.

The coalition includes governments, international organisations, technical institutions, ratings agencies and private financial institutions worldwide.

Green infrastructure is one of AIIB’s four thematic priorities as prescribed in its Corporate Strategy. AIIB has committed to achieving at least 50 percent of its actual approved financing to be climate financing by 2025 and has projected $50 billion in investments for climate finance by 2030.

At a side event of COP27, Alexander announced that AIIB is aiming to issue its first climate resilience bond next year, with 100 percent of the underlying project pipeline targeting investments in climate-resilient infrastructure.

The bond will be issued under AIIB’s Sustainable Development Bond Framework, which clearly outlines how AIIB is adhering to the principles set out in its Environmental and Social Framework that guides project selection, and how it is helping its members to meet their commitments under the Paris Agreement and the UN Sustainable Development Goals.

Topics