The Beijing-based Asian Infrastructure Investment Bank reported that 67 percent of its financing in 2024 was allocated to climate-related projects, surpassing its 2025 goal for the third consecutive year and underscoring its commitment to aligning with the Paris Agreement.
The bank’s inaugural sustainability report revealed that climate finance approvals totaled $19.77 billion in 2024, accounting for 50.2 percent of the total $39.40 billion in financing approvals. Since July 2023, all new investment operations have been aligned with the Paris climate goals.
President Jin Liqun said sustainability is the foundation of AIIB’s mandate. “In 2024, AIIB allocated 67 percent of our regular financing to climate-related investments, surpassing our 2025 target for the third consecutive year,” he said. He added that the bank would maintain more than half of its financing for climate-related projects every year through 2030.
Strategic Approach
The report highlights climate finance as one of AIIB’s four thematic priorities, alongside connectivity, technology-enabled infrastructure and private capital mobilization.
In 2024, nearly all newly approved projects were categorized under the Green Infrastructure category. Of the climate financing, 73 percent went to mitigation projects, such as renewable energy and energy efficiency, while 27 percent supported adaptation initiatives, including urban resilience and water management.
AIIB’s Climate Action Plan focuses on client-driven solutions, high-impact projects, mobilizing private capital and innovative financing.
Recent measures include a climate-focused policy-based financing tool to support member-led reforms, a climate-resilient debt clause to provide countries with relief after disasters and accreditation for the Green Climate Fund to mobilize concessional resources.
Risk Management
The bank’s portfolio exposure totaled $72.1 billion at the end of 2024, covering sovereign-backed and non-sovereign financing as well as its treasury portfolio.
A materiality assessment revealed that approximately 80 percent of sovereign and non-sovereign exposure is located in countries with a medium physical climate risk and around 14 percent in high-risk countries. Transition risks were concentrated in economies reliant on sectors such as transport and agriculture.
AIIB has integrated climate factors into its credit and market risk assessments. Since late 2024, expected credit loss models have included climate shocks for vulnerable countries.
A climate-related financial risk assessment using global climate scenarios projected that under both orderly transition and current policies, the financial impact on AIIB’s portfolio remains immaterial through 2050.
Chief Financial Officer Andrew Cross and Controller Hui Fong Lee said the disclosures aim to reinforce transparency and investor confidence.
“Promoting sustainable infrastructure requires us to operate as a sustainable institution. This report demonstrates how we integrate climate into our operations and hold ourselves accountable,” they said.
They acknowledged challenges in measuring Scope 3 financed emissions and improving data consistency but pledged continuous progress.
Metrics and Targets
AIIB reported its institutional and financed emissions for the first time. Its own operations generated 23,820 tons of carbon dioxide equivalent in 2024, largely from office energy and travel.
Through its Institutional Carbon Emission Management Plan, the bank aims to reach carbon neutrality by 2025.
Steps include sourcing all electricity for its Beijing headquarters from renewable sources, which cut about 3,700 tons of emissions in 2024, and curbing business travel through videoconferencing and low-carbon commuting.
On financed emissions, the bank disclosed 724,063 tons of carbon dioxide equivalent in 2024 across its lending portfolio, covering about 27 percent of its $13.5 billion outstanding operations.
The largest contributors were project finance and sovereign loans, while corporate lending and equity had a limited impact. AIIB has launched a program to strengthen its capacity for more comprehensive Scope 3 financed emissions reporting.
Looking Ahead
AIIB said it will sustain a climate finance share above 50 percent annually until 2030 while expanding work on adaptation, resilience and nature-based solutions.
It also plans to increase the use of sustainable bonds, pilot debt-for-nature swaps and scale investments in clean hydrogen, offshore wind, and storage technologies.
“The publication of AIIB’s inaugural sustainability report marks a pivotal moment in our institutional evolution,” Cross and Lee said. “While we are proud of our progress, we recognize that challenges remain. We are committed to continuously improving the breadth and quality of our disclosures.”
Jin added that transparency and collaboration are critical. “We invite stakeholders to review our progress, reflect on our lessons and join us in raising our aspirations for a more resilient, inclusive and sustainable future for all,” he said.
