Dangerous Distractions: Why the Asian Infrastructure Investment Bank must help turn the tide on fossil fuels in Bangladesh

Bank Information Center Europe, Coastal Livelihood & Environmental Action Network (CLEAN) and NGO Forum on ADB | July 2019

Summary

From the very beginning, the Asian Infrastructure Investment Bank (AIIB) committed to being “green” and to support the implementation of the Paris Agreement on climate change. But despite these laudable ambitions, it is yet to turn them into reality. The true test for determining the AIIB’s commitment to battling climate change is its track record of lending to date: its portfolio of approved projects. This reveals a troubling picture. Three years after the bank opened, fully 20% of the AIIB portfolio is directly backing fossil fuel projects, in particular natural gas. The AIIB is also channeling funds through financial intermediaries (FIs) – lending to third parties, such as infrastructure funds – resulting in some sub-investments backing fossil fuels and even coal. In contrast, the share of the AIIB’s investments going towards renewable energy is small – only 8% of the overall portfolio.

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