There is global momentum to invest in “green infrastructure,” but the actual volume of investment is still well below desired targets. To do its part, AIIB will prioritize green infrastructure investments, including projects that deliver local environmental improvements and are dedicated to climate action. We will cover a range of investments and sectors including renewable energy and low-carbon public transportation, as well as better water management and sanitation, pollution control and enhancing ecosystem services. AIIB has set an ambitious target of ensuring that 50 percent of overall approved financing by 2025 will be directed toward climate finance. We announced on Oct. 26, 2021 that we would align our operations with the goals of the Paris Agreement by July 1, 2023. Our current estimate is that our cumulative climate finance approvals would be USD50 billion by 2030.
The design and construction of a new corridor in Chennai’s metro network will have environmentally friendly features to help reduce its carbon footprint. In addition to solar panels installed on the roofs of the elevated stations, the project will have dedicated spaces for bicycles and green vehicles, and signage to raise environmental awareness. The project also integrates climate change resilience features to reduce its vulnerability to climate-related events.
AIIB is helping the Government of Türkiye finance Infrastructure for Tomorrow (i4t) through a connectivity project that aims to increase rail transport safety, passenger and freight capacity and speed between Türkiye and the European Union.
It is with this sense of urgency that AIIB and asset management company Amundi have developed a toolkit for investors to apply a climate framework to capital markets that is aligned with the Paris Agreement, the only international agreed legal framework that binds countries to reduce carbon emissions to address climate change.
Our Energy Sector Strategy sets out a clear framework for us to help AIIB Members meet their needs for essential energy services and facilitate their transition to a clean energy system that provides access to affordable, reliable and sustainable energy for all.
To reflect the evolving energy sector landscape and to align the Strategy with AIIB’s climate commitments, an update to the 2017 Energy Sector Strategy was approved by AIIB’s Board of Directors in November 2022. The updated Energy Sector Strategy: Sustainable Energy for Tomorrow is informed by the principles of Sustainable Development Goal 7 and is fully in line with AIIB’s commitment to align its investment operation activities with the Paris Agreement goals.
Infrastructure for Tomorrow sets a clear mission for AIIB by requiring that all investments across infrastructure and other productive sectors should align and add value through one or more of the following four thematic priorities.