The AIIB’s commitment to being ‘lean’ endangers its capability to invest sustainably
AIIB president Jin Liqun (image: World Economic Forum)
If the bankers descend on Mumbai week that is next the next yearly basic conference regarding the Asian Infrastructure Investment Bank (AIIB), numerous will ask perhaps the world’s latest multilateral development bank has resided as much as its claims as it had been started in 2015.
Promoting sustained development that is economic infrastructure investment without making an ecological impact is our sacred objective
Its rhetoric happens to be impressive. The bank’s energy strategy consented year that is last to “embrace” the Paris Climate Agreement plus the Sustainable Development Goals. Its primary investment officer D Jagatheesa Pandian, who worked closely with India’s Prime Minister Narendra Modi as he ended up being primary minister of Gujarat, guaranteed a “bank for the twenty-first century”.
Meanwhile, AIIB president Jin Liqun told Bloomberg in May that “promoting suffered development that is economic infrastructure investment without making an ecological impact is our sacred mission”. The bank’s mantra that is long-standing become “lean, neat and green”.
But, stressing indications are rising that the lender is struggling because of the tensions between being slim being green. The AIIB’s lending to 3rd party financial intermediaries has exposed a back home to investment in fossil-fuel tasks, whilst side-stepping its obligation to give you ecological and oversight that is social. There are additionally issues concerning the bank’s willingness to take part in significant general public consultation and information disclosure, and also to be accountable to communities impacted by its operations.
“Hands down” lending
At last year’s AGM on Jeju Island in South Korea, president Jin declared, “we do not have coal tasks inside our pipeline”.
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