Asian Infrastructure Investment Bank in US$1b partnership to fund energy transition

GREEN energy transition and renewable energy projects are set to get a boost of up to US$1 billion under a new partnership between the Asian Infrastructure Investment Bank (AIIB) and the Global Energy Alliance for People and Planet (GEAPP).

AIIB and GEAPP, in an announcement at the COP27 summit in Egypt, said they will seek co-financing opportunities for projects and programmes in grid-based renewables, distributed renewables and fossil fuel transition.

The capital will be directed to countries eligible for AIIB's financing activities and that meet the multilateral development bank's strategies and policies, while also being in alignment with GEAPP's charitable objectives.

AIIB began operations in Beijing in January 2016, and has grown to 105 approved members worldwide. It is capitalised at US$100 billion and rated as Triple A by major international credit rating agencies.

GEAPP is an alliance of philanthropists, entrepreneurs and governments in emerging and developed economies, as well as technology, policy and financing partners. It supports developing countries' shift to a clean energy, pro-growth model.

"Last year, clean energy generation grew by 522 TWh (terawatt-hour), about a quarter of what is needed to end energy poverty. However, most of this generation occurred in developed countries," Simon Harford, CEO of GEAPP, said in a statement.

"As a global multilateral development bank, 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."

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