The AIIB’s dedication to being ‘lean’ endangers its capability to spend sustainably
AIIB president Jin Liqun (image: World Economic Forum)
If the bankers descend on Mumbai a few weeks for the next yearly general conference associated with the Asian Infrastructure Investment Bank (AIIB), numerous will ask whether or not the world’s latest multilateral development bank has resided as much as its promises because it was created in 2015.
Promoting sustained financial development through infrastructure investment without making an ecological impact is our sacred mission
Its rhetoric was impressive. The bank’s energy strategy consented year that is last to “embrace” the Paris Climate Agreement and also the Sustainable Development Goals. Its main investment officer D Jagatheesa Pandian, whom worked closely with India’s Prime Minister Narendra Modi as he ended up being main minister of Gujarat, assured a “bank when it comes to twenty-first century”.
Meanwhile, AIIB president Jin Liqun told Bloomberg in May that “promoting suffered development that is economic infrastructure investment without making an ecological impact is our sacred mission”. The bank’s long-standing mantra is become “lean, clean and green”.
But, stressing indications are growing that the lender is struggling because of the tensions between being slim being green. The AIIB’s financing to alternative party financial intermediaries has exposed a back home to investment in fossil-fuel tasks, whilst side-stepping its obligation to deliver ecological and social oversight. There’s also issues concerning the bank’s willingness to take part in significant general public assessment and information disclosure, and also to be accountable to communities afflicted with its operations.
“Hands down” lending
At final year’s AGM on Jeju Island in Southern Korea, president Jin declared, “we haven’t any coal tasks inside our pipeline”. Read More