COP27: $1bn signed for grid-based projects ‘in Asia and beyond’
A strategic investment partnership will see AIIB and GEAPP mobilise up to $1 billion and identify co-financing opportunities for projects and programs of common interest in grid-based renewables, distributed renewables and fossil fuel transitioning areas.
The Asian Infrastructure Investment Bank (AIIB) and the Global Energy Alliance for People and Planet (GEAPP) announced their partnership during COP27 for the financing of green energy transition and renewable energy projects, in both the public and private sectors.
The partnership will enhance assistance in areas such as co-financing operations and private capital mobilisation.
Capital will be directed to countries eligible to AIIB’s financing activities and that meet the Multilateral Development Bank’s (MDB’s) strategies and policies, while also being areas of GEAPP activity in alignment with and advancement of GEAPP’s objectives.
Simon Harford, CEO of GEAPP stated: “Last year, clean energy generation grew by 522TWh, about a quarter of what is needed to end energy poverty. However, most of this generation occurred in developed countries.
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“As a global MDB, AIIB has the capital, convening power and commitment to invest in innovative, clean energy projects across developing countries, which makes the Bank an ideal partner to join GEAPP. Together we will deliver transformational projects that accelerate and scale the energy transition for communities in Asia and beyond.”
AIIB President Jin Liqun remarked upon the significance of the partnership: “Despite challenges last year, AIIB achieved a 48% climate finance share of total approvals in 2021. Through our timely collaboration, AIIB will continue striving to find new ways to provide our members with access to additional capital and resources.”
Sir Danny Alexander, Vice-President of AIIB, added: “Our participation in GEAPP marks yet another step forwards for our bank, in unlocking new resources through co-financing measures, to meet our ambitious climate targets and deliver value to those most in need.
“As a climate-driven, partnerships bank, our joint work will be focused on project collaboration, and AIIB is delighted to join the alliance of GEAPP as an investment partner in financing a greener, more sustainable future.”
An exchange of Letters of Intent (LoI) was completed at a signing ceremony in Sharm El-Sheik. AIIB’s vice-president of policy and strategy, Sir Danny Alexander, and GEAPP’s CEO, Simon Harford, signed the documentation and were joined by Jin Liqun, president of AIIB; dr. Rajiv Shah, president of The Rockefeller Foundation; Per Heggenes, CEO of IKEA Foundation; and dr. Andrew Steer, president and CEO of Bezos Earth Fund.
The partnership follows prior cooperation between AIIB and GEAPP over the past year and is the first time AIIB has partnered with a global philanthropic foundations-led initiative.
