Asia faces acute climate risks alongside an estimated annual infrastructure financing gap of USD1.7 trillion. Bridging that gap requires more than financing individual projects. It requires building the standards, financial instruments and institutional confidence needed to mobilize long-term private capital toward sustainable infrastructure.
Across Asia’s evolving climate finance landscape, the Asian Infrastructure Investment Bank (AIIB) is helping develop the foundations of climate finance markets by supporting financing platforms, strengthening market standards and expanding access to climate-aligned capital.
From infrastructure assets to infrastructure systems
As global demand for environmental, social and governance investments grows, emerging Asia still faces a shortage of credible climate investment products. To help address this gap, AIIB partnered with Amundi to establish a USD500 million managed climate bond portfolio supported by the Climate Change Investment Framework, which evaluates issuers based on emissions reduction, climate adaptation measures and alignment with the Paris Agreement.
By applying consistent climate assessment standards to both labeled and unlabeled bonds, the initiative demonstrates how climate integrity and market expansion can reinforce one another. The portfolio now spans infrastructure sectors across 28 AIIB members and includes more than 50 issuers. It is estimated to have helped eliminate about 750,000 tons of CO₂ emissions, demonstrating how system-level financing can deliver measurable climate and development outcomes.
Mobilizing private capital for climate transition
AIIB’s market-development approach also extends to equity investments in climate transition platforms. The Bank’s USD75-million investment in the Actis Asia Climate Transition Fund marked AIIB’s first equity commitment to a climate-transition-focused fund in emerging Asia.
As an early anchor investor alongside partners including the Hong Kong Monetary Authority (HKMA), German Investment Corporation (DEG), International Finance Corporation (IFC) and Asian Development Bank (ADB), AIIB helped strengthen investor confidence, support high standards for governance and climate integrity, and mobilize institutional capital into transition-related infrastructure.
The fund focuses on sectors critical to Asia’s decarbonization efforts, including renewable energy, sustainable transportation and other climate-transition infrastructure. The platform also promotes robust environmental and social standards across its investments and is aligned with Article 9 of the Sustainable Finance Disclosure Regulation.
Pioneering blue bonds in Viet Nam’s capital markets
AIIB also supports the development of innovative financing instruments where market gaps constrain investment in sustainable infrastructure. In Viet Nam, this included supporting the country’s first blue bond transaction to expand financing for green and blue infrastructure.
AIIB invested USD75 million in unlisted, USD-denominated green and blue bonds issued by Southeast Asia Commercial Joint Stock Bank, with disbursement completed at the end of 2025. In partnership with IFC, AIIB supported the issuer in developing a Green and Blue Bond Framework, which was verified by an independent second-party opinion provider to strengthen transparency and market confidence.
As Viet Nam’s first blue bond, the transaction established an important precedent for other financial institutions by demonstrating how innovative thematic financing instruments can operate within the country’s evolving regulatory environment. The process also reflected AIIB’s ability to navigate complex regulatory frameworks while helping develop replicable financing solutions for sustainable infrastructure.
By pioneering innovative instruments, anchoring investments and collaborating with global partners, AIIB demonstrates that climate finance is not just about funding individual projects – it is about shaping systems that enable sustainable, inclusive and resilient growth. As Asia faces growing climate challenges and a vast infrastructure gap, AIIB remains committed to working with members, investors and partners to mobilize capital, strengthen market confidence and expand the pipeline of bankable climate infrastructure opportunities across the region.
