AIIB to Invest $50 Billion in Climate Change Projects by 2030

President Jinrichun: Current Energy Crisis Implies Need for New Energy Investment
"Energy Crisis Should Not Delay or Weaken Commitment to Carbon Neutrality Goals"

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Jin Liqun, President of the Asian Infrastructure Investment Bank (AIIB), announced a revision of the energy investment policy, stating that the bank will not fund coal projects.

According to Chinese media such as the state-run Global Times and Pengpai on the 28th, President Jin stated in an interview with Chinese media ahead of the '26th United Nations (UN) Climate Change Conference of the Parties (COP26)' that while completely eliminating fossil energy in the near future is unrealistic, the AIIB will support member countries to accelerate eco-friendly policies.

President Jin Liqun of AIIB (Photo by Pengpai)

President Jin diagnosed that the world is currently facing an energy crisis not experienced since the 1970s, with prices of oil, coal, and natural gas soaring. He added, "The rise in fossil fuel prices conversely indicates the need for investment in new energy and renewable energy."

Regarding the shortage of fossil fuels, President Jin explained, "The increase in oil and coal prices is mainly due to a surge in energy demand," and "the approaching winter is also a factor." He continued, "The current energy supply and demand issues show how challenging the path to achieving carbon neutrality is," emphasizing again, "The current energy crisis should not delay or weaken the commitment to carbon neutrality goals."

He expressed his personal opinion, stating, "The current global energy crisis is exaggerated," and warned, "Coal production should not be increased again due to this energy supply imbalance."

He particularly stressed, "It is more important for the international community as a whole to revise energy policies and related regulations," and urged, "If the international community presents a consistent policy direction and moves together accordingly, a faster energy transition will be possible."

President Jin also revealed the direction of funding support for new energy projects in various countries. He said that by 2025, 50% of investment funds will be allocated to new energy projects such as climate change, and by 2030, the cumulative amount will reach 50 billion dollars (approximately 59 trillion Korean won). He added that this is four times the amount of climate change-related financial support announced by AIIB in 2019.

President Jin also commented on China's energy policy. He said, "I support the Chinese government's adjustment of energy prices such as coal," adding, "Energy savings can significantly alleviate the shortage of energy supply."

Since its launch, AIIB's membership has increased from 57 to 104 countries, and to date, it has provided investment funds totaling 28.97 billion dollars for 147 projects in 31 member countries.