The China-initiated Asian Infrastructure Investment Bank (AIIB) expressed support for its members to meet their commitments to the Paris Agreement, a global climate change deal.
The AIIB's board of directors held a meeting on Thursday, expressing its support of the bank's "Sustainable Energy for Asia Strategy" to help its members' transition toward a low-carbon future, according to a press release received Friday.
The implementation of the strategy, which sets out a clear framework for the bank to invest in energy projects that will increase access to clean, safe and reliable electricity for millions of people in Asia, the AIIB will support its members to do their part as expressed in the Paris Agreement.
The Paris Agreement aims to hold the increase in the global average temperature to well below 2 degrees Celsius above pre-industrial levels and pursue efforts to limit the temperature increase to 1.5 degrees Celsius.
The AIIB said it will achieve the goal by aligning its support with its members' energy investment plans, including their determined contributions under the Paris Agreement.
"We are ready to do our part in support of the Paris Agreement to build a sustainable tomorrow by investing in energy projects that will meet the needs of developing countries and also protect our environment," said Jin Liqun, AIIB president.
The Sustainable Energy for Asia Strategy underwent two rounds of public consultations in November 2016 and in February 2017 each, with a diverse set of external stakeholders.
To implement the strategy in an environmentally and socially sound manner, the AIIB said it will prioritize investments in renewable energy projects, such as wind, solar and hydropower as well as in projects that enhance the energy efficiency of existing infrastructure.
The investments will be made in system upgrades that will improve the safety and reliability of infrastructure, such as transmission and distribution networks, and reduction of air pollution to immediately address the health needs of vulnerable people.
"Helping to build a sustainable future by reducing reliance on high-emission power supports our mission and green core value," said Joachim von Amsberg, vice president of policy and strategy at AIIB.
Amsberg said the strategy will contribute to government and private sector efforts to provide millions of people in Asia with access to affordable and reliable energy for the first time.
Officially launched in January 2016, the Beijing-based AIIB is a multilateral development bank initiated by China and supported by a wide range of countries and regions, which will provide financing for the infrastructure improvement in Asia.