The Asian Infrastructure Investment Bank (AIIB) has successfully issued its second Climate Adaptation Bond, raising AUD 500 million (USD 311 million) under the AIIB Sustainable Development Bond Framework. The five-year bond aims to finance projects prioritising climate resilience, with at least 20% of project funding directed towards climate adaptation efforts.
The proceeds will fund initiatives that enhance infrastructure resilience and support sustainable development among AIIB’s member nations. AIIB’s approach to climate adaptation aligns with harmonised principles established by multilateral development banks for tracking adaptation finance, including its Methodology for Assessing the Alignment of AIIB Investment Operations with the Paris Agreement (2023). The criteria focus on identifying, assessing, and managing climate risks rigorously.
Key projects eligible for funding include the Climate Resilient Inclusive Development Programme in Bangladesh and the Bukhara Region Water Supply and Sewerage Phase II in Uzbekistan. These initiatives aim to mitigate climate risks by improving access to resilient water and waste management systems, reducing climate vulnerability in affected areas.
AIIB Treasurer Domenico Nardelli said, “As climate change continues to intensify, investing in resilient infrastructure becomes more critical. The proceeds of this bond will strengthen the resilience of infrastructure across our members, enabling them to better prepare for and mitigate the impacts of future climate events.”
