Commitment to achieve the goals consistent with the Paris Agreement
Asian Investment Bank intensifies climate financing efforts
Our reporter Yuan Yong
The Asian Infrastructure Investment Bank (hereinafter referred to as "Asian Infrastructure Investment Bank") announced at the sixth annual meeting of the board of directors held recently that by July 1, 2023, all its investment projects will achieve the goals related to the Paris Agreement and fully maintain Unanimous.
The Asian Infrastructure Investment Bank also promised to increase climate financing. It is estimated that by 2030, the cumulative climate financing will reach US$50 billion.
The AIIB’s commitment to the consistency of the relevant objectives of the Paris Agreement will apply to national sovereign and non-sovereign projects including investment through financial intermediaries.
In an interview with the "Economic Daily" and other media, Jin Liqun, AIIB President and Chairman of the Board of Directors, stated that the AIIB will continue to strengthen its commitment to support the Paris Agreement, and will work with members and partners to advance the global response to climate change in the future. , Will also mobilize more private capital, gather more extensive joint efforts, and jointly build a more inclusive, fair and sustainable future.
In 2020, the Asian Infrastructure Investment Bank issued a ten-year development strategy, and proposed that investment in "future-oriented infrastructure" will be the focus of the AIIB's future work. Four strategic priority investment directions are planned: green infrastructure, mobilization of private capital, and strengthening interconnection. And regional cooperation, technology-driven infrastructure.
Accordingly, the AIIB will promote sustainable green infrastructure construction and help members achieve environmental and related development goals by prioritizing investment in projects that improve the local environment and are committed to climate action.
In 2020, the AIIB’s climate-related financing has reached 41% of the total approved financing.
This year, the Asian Infrastructure Investment Bank puts forward a goal that climate financing will account for 50% of total financing by 2025.
In addition, the AIIB will also work with other multilateral development banks to achieve the goal of reaching a total of 175 billion U.S. dollars in climate financing for multilateral institutions by 2025.
Jin Liqun believes that despite the current global energy prices and power supply shortages, this is a phenomenon caused by a temporary misalignment of supply and demand and should not be a factor hindering investment in new energy.
This instead reminds the world to grasp the overall situation and increase investment in new energy.
“In response to climate change, reasonable and effective capital investment needs to be based on infrastructure innovation and fundamental changes in people’s perceptions and behaviors. Climate-resilient infrastructure, such as flood protection dikes, and improved building standards , Are all tools we can use. The key question is whether we can obtain funds to put them into practice, especially in developing countries." Jin Liqun said.
By 2030, the annual cost of enhancing climate resilience in developing countries will reach US$140 billion to US$300 billion.
However, United Nations data shows that the relevant investment in this field is only 30 billion U.S. dollars.
Talking about how to reduce investment risks, Jin Liqun said that there are essential differences between the AIIB and venture capital institutions. Generally speaking, the technologies and projects invested by the AIIB have been verified for a period of time and are highly feasible. In the early stage of higher emerging technologies, the AIIB rarely invested.
In addition, in the investment process, in addition to looking at the project itself, the AIIB also pays great attention to assessing the debt situation of relevant countries.
In addition, in the process of green investment, the AIIB attaches great importance to the green evaluation of the investment projects.
Currently, the Asian Infrastructure Investment Bank is conducting application tests on its investment projects to ensure that its project due diligence and technical analysis can meet the low-carbon and climate adaptability goals stipulated in the Paris Agreement.
This method draws on the international standards and management framework that many multilateral development banks, including the Asian Infrastructure Investment Bank, are jointly studying and formulating.
In 2020, the AIIB and Alibaba, Europe's largest asset management company, jointly launched a climate change investment framework and established an Asian climate bond investment portfolio, aiming to accelerate members' low-carbon economic transformation through the capital market.
The framework can assist investors in quantifying the analysis of the three goals of mitigation, adaptation to physical changes and transition to a green economy in the Paris Agreement, to assist them in assessing possible climate risks in the investment process, and to ensure that funds flow to a sustainable basis Facilities construction.
Since its establishment, the scale and influence of the AIIB have continued to expand, which also contributes to the current established goals of green investment.
Over the past six years, the AIIB has conducted extensive cooperation with multilateral institutions such as the World Bank, Asian Development Bank, African Development Bank, and Islamic Development Bank.
The number of its members is also expanding. With Nigeria’s recent official accession, the number of members of the AIIB has expanded to 104.
Jin Liqun said that Nigeria is the most populous country in Africa, and its participation in the AIIB will greatly promote the AIIB to help Africa improve the level of infrastructure construction and promote local economic development.
"In the past six years since its establishment, the AIIB has gradually matured. The high standards and its ability to respond to problems and speed of response have left a deep impression on many countries. The door of the AIIB will always be open, and more countries are welcome to join." Gionee Group said.