The Asian Infrastructure Investment Bank (AIIB) has committed $100 million climate transition investments in emerging Asia.

Of the total commitment, it has earmarked $75 million to the Actis Asia Climate Transition Fund, managed by Actis GP LLP, and $25 million co-investment sleeve alongside it.

The fund aims to invest in renewable energy infrastructure, energy solutions and sustainable transportation which lean toward emerging Asia, AIIB said in a press release.

This marks AIIB’s first climate transition-themed fund dedicated to emerging Asia and highlights the bank’s commitment to sustainable development and climate change mitigation in the region.

Project Highlights:

• Strong Sustainability Credentials: The Actis Asia Climate Transition strategy was established to meet investor demand for an SFDR Article 9 investment strategy. The strategy is focused on net-zero and decarbonization assets to support climate solutions including energy efficiency, smart grids, district energy and sustainable transportation. AIIB will gain access to Actis’ proprietary sustainability toolkit for direct investments, including governance framework, processes and metrics that will persist beyond exit.
• Demonstration Effect on Gender Focus—The Project marks AIIB’s first equity position in an energy transition infrastructure-focused fund which is committed to addressing gender gaps in the energy sector, enabling learning opportunities for development of gender considerations in future investments.
• Strategic Partnership that Drives Environmental and Social Impact—As an emerging market-focused sustainable infrastructure investor, the Fund will be Actis’ first climate-transition strategy. The collaboration highlights AIIB’s proactive approach to forming strategic partnerships and demonstrates AIIB’s dedication to financing sustainable infrastructure and fostering low-carbon solutions in Asia.

AVP Comment:

“Our commitment to the Actis Asia Climate Transition Fund underscores AIIB’s dedication to financing sustainable infrastructure and fostering low-carbon solutions in Asia,” said Rajat Misra, Acting Vice President, Investment Clients, Region 1 & Financial Institutions and Funds, Global, AIIB. “This partnership aligns with our climate strategy and sets a precedent for future investments aimed at achieving net-zero emissions while promoting gender equality in the energy sector.”