MANILA, Philippines — The Asian Infrastructure Investment Bank (AIIB) plans to provide $50 billion in climate financing to member countries as it pledged to align its operations with the Paris Agreement as early as 2023.
AIIB estimates that cumulative climate finance approvals will amount to $50 billion by 2030 as part of the goals of the Paris Agreement.
Last year, climate finance accounted for 41 percent of AIIB’s infrastructure portfolio.
AIIB president Jin Liqun emphasized that the way forward involves greater participation by the private sector on all fronts to ensure a more equitable and sustainable future.
Liqun said enhancing investments in adaptation and resilience for low-income countries and fostering emerging technologies to drive action on climate change are key focus areas.
AIIB’s latest commitment applies to sovereign and non-sovereign projects, including investments made through financial intermediaries.
Further, AIIB is testing a process to ensure projects meet low-carbon and climate-resilient standards consistent with the Paris accord.
The approach draws on the international standards and frameworks currently being developed in collaboration with other multilateral development banks.
Liqun said technology can act as a lever to curb greenhouse gas emissions.
“However, this will require a more focused approach to the adoption of new technology as an essential element of any comprehensive response to global climate change,” he said.
Annual resilience costs in developing countries alone are estimated to be $140 to $300 billion in 2030. Unfortunately, current resilience financing stands at a meager $30 billion.