AIIB highlights multilateralism in future work

2022-10-28 08:35:07China Daily Editor : Li Yan ECNS App Download

Development bank to further support member countries, enhance global ties

The logo of Asian Infrastructure Investment Bank is seen at its headquarters in Beijing. (Photo/Xinhua)

The 20th National Congress of the Communist Party of China sent a clear message that China will continue to embrace multilateralism, said Jin Liqun, president of the Asian Infrastructure Investment Bank.

"The 20th CPC National Congress has just concluded. What is most relevant to our bank is the message that China will continue to embrace multilateralism, and China will continue to work with other members of the international community," said Jin at a news briefing on Wednesday on the sidelines of the seventh annual meeting of AIIB's board of governors.

The Beijing-based multilateral development bank is looking forward to China's continued support as its biggest shareholder, Jin said. He believes the bank will be able to work with China and other large shareholders to provide vital support to those members who need its resources most.

"At a time when the world is becoming more divided, it is imperative for us to promote multilateral cooperation and contribute to global governance through joint efforts with the international community," he said.

"At our bank, we believe in working together to harness the power of connectivity and deliver sustainable transformational impact. Never has the case for multilateralism been stronger as the world's leaders and financial institutions assess steps needed to reboot the economy. There's a growing call for collaboration on development."

AIIB's priority is mobilizing private sector capital as it becomes a leader in climate financing for sustainable infrastructure, intending to ensure that 50 percent of its overall approved financing by 2025 will be directed toward climate finance, he said.

In 2021, its climate finance amounted to $2.9 billion or 48 percent of total approved financing, up from 41 percent in the previous year.

Starting with 57 founding members in 2016, AIIB now has a total of 105 members. It has developed a portfolio of 191 projects in 33 member countries with project financing totaling $36.44 billion.

"Many of our developing country members are very keen on working with us in their net-zero transitions. What is most important is that we remain optimistic despite the difficulties. All of these countries remain committed to implementing the Paris Agreement," he said.

A report published by AIIB on Thursday reveals an urgent need for a smooth and fair net-zero transition led by state-owned enterprises, state-owned financial institutions and private-public partnerships.

To guide the transformations of the state and the private sector to work in tandem, the key is to find new ways of mobilizing capital and sharing risks while keeping in mind the pressures of transformation, the report said.

The current economic pressure will have some adverse impact on many countries' ability to continue their basic infrastructure development projects. That is why AIIB must provide new resources to those countries that need help at the most critical times, Jin said.

Apart from providing financing for climate change adaptation and mitigation, the bank also aims to improve connectivity and regional cooperation and support technology-enabled infrastructure, with a mission of financing the infrastructure for tomorrow with sustainability at its core.

In order to further improve its response to the needs of its diverse membership, AIIB is preparing to open an interim operational hub in Abu Dhabi, the United Arab Emirates, and plans to expand its global presence starting with the hub.

As the bank's first overseas office, the hub in Abu Dhabi will provide proximity to global financial centers and connectivity with the international infrastructure ecosystem, Jin said.

"We will select hubs in the member countries moving forward. The first hub will help us gain experience, which can inform decision-making in the future," he said.

"The hub can also help us reach out to the private sector in our clients' countries. We are working hard to mobilize private sector investors by participating in the capital market development of many countries in Asia and elsewhere."


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