The Asian Infrastructure Investment Bank (AIIB) has been accredited as an International Access Entity (Accredited Entity) of the Green Climate Fund (GCF) at the 40th GCF Board meeting held in Songdo, Incheon, Republic of Korea, from October 21 to 24.
The partnership is in line with AIIB’s corporate strategy and the GCF’s reform program will enable both institutions to leverage their resources to more effectively support members in achieving their Nationally Determined Contributions for low-emission development goals. and climate resilient, a critical component of the Paris Agreement.
“The AIIB’s top priority is to develop green infrastructure that facilitates the climate transition and is resilient to the impacts of climate change in the coming decades,” said Sir Danny Alexander, Vice President of Policy and Strategy at the AIIB.
“This partnership with the GCF is a testament to our commitment to this mandate, as reflected in our corporate strategy.”
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With this accreditation, the AIIB will gain access to GCF funds through a flexible mix of grants, concessional debt, guarantees and equity instruments. This will allow the AIIB to leverage blended finance and attract private capital for climate action in developing country members. As a GCF-accredited entity, AIIB will continue to deepen its collaboration with other international, regional and national development finance institutions, equity funds and UN agencies to develop high-quality climate-focused projects.
Henry González, Chief Investment Officer of the Green Climate Fund (GCF), welcomed the GCF Board’s decision to approve accreditation. “This partnership opens up exciting new opportunities for collaboration on expanded climate action that focuses on green and resilient infrastructure in multiple countries,” he said.
The AIIB’s top priority is to develop green infrastructure that facilitates the climate transition and is resilient to the impacts of climate change.
“Both the GCF and AIIB have a shared focus on innovative solutions that provide a pathway for a low-emission, climate-resilient pathway to sustainable development.”
In 2023, the AIIB’s climate financing reached 60% of total approved ordinary financing, an increase from 56% in 2022, exceeding the objectives set out in its corporate strategy. In terms of volume, its climate finance increased from USD 2.39 billion in 2022 to USD 3.43 billion in 2023.
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