The Global Energy Alliance for People and Planet (GEAPP) and the Asian Infrastructure Investment Bank (AIIB) announced a strategic investment partnership at COP27, mobilising up to USD 1 billion for the funding of green energy transformation and projects involving renewable energy in both the public and private sectors.
By identifying co-financing opportunities for projects and programmes of mutual interest in grid-based resources, dispersed renewables, and energy transitioning areas, AIIB and GEAPP will work together to meet the problems of the energy transition in Asia and beyond. It follows close collaboration between AIIB and GEAPP over the previous year and is the first time AIIB has collaborated with an initiative managed by a worldwide charitable foundation.
The alliance will improve assistance in areas including co-financing operations and private capital mobilisation, building on the AIIB’s history of driving investment in sustainable infrastructure for tomorrow. Capital will be allocated to nations that meet AIIB’s financing criteria, are active in GEAPP, are both qualified for AIIB financing activities, and align with and further GEAPP’s charity goals.
In a statement about the alliance and the deepened working relationships with GEAPP, AIIB President Jin Liqun noted its importance by saying that despite hurdles last year, AIIB delivered a 48% climate finance share of overall approvals in 2021. AIIB will keep looking for innovative ways to give its expanding community of members access to more funding and resources through a timely collaboration. They look forward to a successful partnership with GEAPP and to paving the road for the greater, greener good.
In Sharm el-Sheik, Egypt, at a signing ceremony, letters of intent were exchanged. In addition to Jin Liqun, President of AIIB, Dr. Rajiv Shah, President of The Rockefeller Foundation, Per Heggenes, CEO of the IKEA Foundation, and Dr. Andrew Steer, President and CEO of the Bezos Earth Fund, the document was signed by Sir Danny Alexander, Vice President for Policy and Strategy at the AIIB, and Simon Harford, CEO of GEAPP. According to Simon Harford, CEO of GEAPP, clean energy generation increased by 522 TWh last year, or nearly 25% of what is required to eradicate energy poverty. However, the majority of this generation was born in industrialised nations.
The Bank is an appropriate partner to join GEAPP because, as a global MDB, it has the resources, convening power, and ambition to invest in cutting-edge, sustainable energy projects throughout developing countries. Together, they will produce game-changing initiatives that will speed up and scale the energy revolution for populations throughout Asia and beyond.
Their involvement in GEAPP signifies yet another step forward in the Bank’s expansion, in unleashing additional resources through co-financing methods to reach their ambitious climate goals while assisting in supporting improved socioeconomic outcomes where communities are most sensitive to climate change, said Alexander. The focus of their engagement will be on projects, and AIIB is honoured to join the GEAPP alliance as a partner in investing in a cleaner, more viable future.