AIIB Expands Climate Financing With New Adaptation Bond Initiative

(MENAFN- Trend News Agency) BAKU, Azerbaijan, January 16. The Asian Infrastructure investment bank (AIIB) has successfully issued its second Climate Adaptation Bond, securing AUD500 million (over $310 million) to finance climate-resilient infrastructure projects under its Sustainable Development bond Framework, Trend reports.

The five-year bond will support initiatives where at least 20% of the financing addresses climate adaptation, reinforcing AIIB's focus on sustainable development and resilience across its member countries.

Projects eligible for funding include the Climate Resilient Inclusive Development Program in Bangladesh and the Bukhara Region Water Supply and Sewerage Phase II in Uzbekistan, which aim to strengthen water infrastructure and reduce climate vulnerabilities.

Domenico Nardelli, AIIB Treasurer, emphasized the importance of such investments, stating:“As climate change intensifies, resilient infrastructure is essential. This bond will enable members to better prepare for and mitigate future climate impacts.”

Hun Kim, Acting Vice President for Investment Solutions, highlighted the broader significance:“This bond underscores AIIB's commitment to addressing climate challenges in Asia by financing projects that minimize economic disruptions and enhance community resilience.”

AIIB's climate financing has been steadily increasing, with $3.43 billion allocated in 2023, accounting for 60% of its total approved financing. The Bank plans to further expand adaptation projects to help its members tackle the growing risks of climate change.

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