with president jin liqun aiib--- interviewer Haslinda Amin
Singapore linkedin …Joined February 2012 insta: @haslindatvlinks sustainable business summit bloomberg live day 1 --6 hour tape
aiib and amundi cbi - climate bonds initiative
Yves Perrier, CEO of Amundi, added: “We are proud to launch this Framework with AIIB as we continue to make strides in the field of climate finance. Mobilizing key stakeholders in supporting the Paris Agreement in Asia is in line with Amundi’s commitment to ESG investing and reflects our extensive commitment to the region. This new Framework will further help the investment community address climate change through the mobilization of capital to emerging markets where it is much needed.”
Sean Kidney, CEO, Climate Bonds Initiative, commented: “Action on climate means action on investment and private sector involvement to create green capital markets. With this Framework, AIIB and Amundi are laying a new foundation for the development and growth of climate finance and transition investment in the region.”
This Framework builds upon AIIB’s climate finance milestones to date. In 2019 AIIB’s climate finance amounted to USD1.7 billion or 39 percent of total financing approved—an increase from USD2.5 billion or 35 percent of total financing approved over the previous three years combined (2016-2018). In 2019 the Bank launched the USD500 million AIIB Asia Climate Bond Portfolio to accelerate members’ climate action, catalyze emerging market investment and address the underdeveloped climate-aligned bond market, providing a working model for the Framework. The portfolio will also function as the investment case for the Framework.
Amundi has been at the forefront of Climate Finance development, creating innovative solutions to bring new large-scale funding dedicated to financing the low-carbon economy across asset classes and geographies. As a responsible investor, Amundi seeks to fulfil its role by supporting investor mobilization and market development through flagship initiatives (such as the Portfolio Decarbonization Coalition) and partnerships with multilateral finance institutions. As of June 2020, climate finance solutions represented EUR19 billion in assets under management.
For more information about the AIIB-Amundi Climate Change Investment Framework visit: https://www.aiib.org/en/policies-strategies/framework-agreements/climate-change-investment-framework/index.html
For climate change. President jin of the Asian infrastructure Investment Bank, it's committed to being a green Bank. President always good to have you with us.
Thank you very much. I'm
very happy to see you and answer your questions. First up, president Jin, you
attended the just concluded, G20 meeting. Climate was among the top of its
agenda for the first time, G20 members, recognize carbon pricing as a climate
tool. Is it a game changer, you think? R.
we are being hit by the very ferocious storm
starting from last night. So we are really in the midst of the impact of the
climate change and all the last three nights. I was involved in the G20 meetings
focused on the climate change, mitigation adaptation and the transition to low
carbon.
Economy as you know
there's some discussions with regard to the carbon Taxation and pricing. I also
made some comments on this because you see this is very much important and to
mitigate the climate change by reducing the emissions. And moving quickly to
Net, Zero is very much important and in this regard and carbon Taxation and
carbon prIcing are considered one of the
Measures to deal with that.
So I think this is a very important initiative, of course, it will take some
time for Sovereign governments to reach consensus, so that they will be very
good carbon market and Taxation. And also I think this would be very important
to incentivize the private sector
we in aiib families are watching this very
closely. And if this this International agreement of this, I do believe
International financial institutions should follow
Looks good on paper.
Jin how
much Global coordination is there? so
far as the MDBs are concerned, I think we have worked very closely together as
a team we in aiib have worked with the World Bank ,ADB particularly and working
with other institutions to Enhance investment in climate change mitigation
adaptation. L in 2020, there is about sixty six billion dollars provided by the
mdbs along with the co-financing from the private sector of 85 billion dollars.
A total about over a hundred fifty billion dollars of the resources are
allocated for climate change mitigation and adaptation. So this is quire a big
amount but I think is not enough so far as adaptation is needed Asia. As you
know, stands at the Gap of 70 billion dollars a year. So lots remains to be done. So there's
cooperation among MDB's and cooperation between mdbs and the private sector.
Its not just about
mitigation is also about adaptation. The pandemic has provided an opportunity
to look at things differently. Resources have been reallocated from energy,
intensive sectors to Greener sectors like health care. How can we build on that
Asian countries are faced with a dual challenge of recovery from the pandemic
and also to sustain economy in the countries which are highly indebted. In our
view, it is very much important for many countries to deal with the both, in my
view, climate change, mitigation adaptation and growth are not mutually
exclusive indeed, they are mutually enhancing based on very good policies.
At this moment, it is
very much important to ramp up efforts to contain the pandemic which is still
raging with the new variants but with the vaccines rolling out, I think
probably before the end of this year or early next year we can basically bring
the pandemic under control and the next issue is how to sustain economy recover
from the pandemic. So I think in Emerging from the pandemic, The Human Society
should be well advised to pay more attention to improve the ecosystem for the economic
development and Environmental Protection. How should we look at developing green and
sectors? Like renewables.
That is key because of
the insatiable appetite for energy. And looking at human capital to support
such cleaner sectors. Of course. It's very important for us to improve the
quality of the human resources at this moment. Our focus is on the Health Care
System. Health Care system is considered one of the productive, sectors and
only healthy Nation can be productive.
So I think it's appropriate to allocate certain amount of resources for Health
Care system, which a really a big challenge for number of countries in Asia wITH
Healthcare deficit. But education is also important. We at this moment do not
allocate resources for education but I think our resource allocation for healthcare
can help the government to allocate their own resources for education and
education should be catered for with new development, the high-tech and in
digital era. As you know the Industrial Revolution warmed up the planet and now
the Technological Revolution must reverse the trend. And, we need to cool with
the planet down to pre-industrial level, but all this involves, I think
high-tech and basically education.
Aiib has said that 50% of
its financing will be directed towards climate change by 2025, where are you on
this and talk to us about some of the innovative solutions that you're looking
at? How can technology and digital infrastructure be the answer to the 21st
century green development. At this moment, we have already 45% of the financing
for climate change. And by 2025,
50% of the approved for climate change mitigation and adaptation.
There are various ways to achieve that objective. First of all, it's very much
important for us to mobilize private sector resources because as you know our
resources are very limited and when we do infrastructure projects we make it we
want to make sure that Infrastructure projects be done in an environmentally
benign way. It will not increase emission on the contrary it should reduce
emission and we also have some very Innovative approaches. As you know, we have
investing climate resilience Partners a private Equity Fund, to mobilize the
private resources to bring Climate technology.
Member countries. This is
the way we work with the private sector and also, we have launched two
portfolios under the sustainable Capital marketing initiative. One is the well
receive ESG portfolio with amundi as our
asset manager and the other is Asia, climate Bond portfolio with amundi as the
asset manager and actually ataiib the climate changing.
framework. I announced
our bank, would not do any coal based plants. And we will not do any projects which
are related to coal. I made that very much clear in the meeting. As, you know,
this is aiib among the CBI climate change, Investment framework is very much important.
It is to translate the key Objectives of Paris agreement iIn two fundamental
metrics to assess the issues level of alignment with climate change, mitigation
adaptation and transition to Net Zero. And all these efforts are very, very
important for the climate change, mitigation. And that also indicates that aiibis
the very creative and Innovative in doing everything possible to leverage our
resources for that purpose. You talked about the need To collaborate with a
private sector to mobilize private Capital. This has been the case for a very
long time. Can you give us perhaps even anecdotal evidence as to how much
progress has been made? I mean to get their investment more in line with the
Paris agreement. You see, the progress is very obvious as I indicated in our
efforts, we find very enthusiastic partners.
The private sector to
work with us. I can see a heightened awareness of the importance of the
investment in this on the part of the climate investors. We also know strong
sense of social responsibility demonstrated by the private sector companies is
very important for their reputation for the ability to raise capital in the
market. And nowadays.
If the private sector, is
only focused on making money to the neglect of the climate change impact. I
don't think they will be welcomed. And so you see, I would say, broadly
speaking, the heightened awareness of promoting climate change mitigation and
adaptation it's really the consciousness of the private sector. So we have no
difficulty working with them and Also, as you see,
It is very important for
all of the asoan members of our bank, to create enabling environment for the
private sector to enhance the investment. That's why I said propitious that the
G7 says it will end overseas funding for coal.
Is that all enough to force, a shift to clean
energy and or is there a chance that some of Asia May pivot or look towards the likes of
Korea for those fundings? You see the Asian country are faced with the
challenge? Because it's the populous region and Full poverty reduction programs
imply, increased demand for energy because as more people are lifted out of
poverty, they need a more decent life and they need more energy. So it's really
a very big Challenge and while the mdbs Are allocating resoure For that purpose
is still not a very much and insufficient
so we need to do a lot of things. Promoting Renewables is important and in our
view to improve Energy Efficiency is also very important. You know, you simply
cannot produce energy without looking atthe efficiency side, and in this
regard, Mass transition systems in Asian Metropolis is Very important and I would say they are lots of
things these countries need to do with the support of the model of our Banks
and and other institutions. So the challenges is there, the consensus is that
right? I'm just wondering if there's one step that needs to be taken one. Would
that be? Because the likes of the US China. India, they're set to burn more
coal this year than ever. There's been an unrelenting called demand pushing
prices. Prices to record levels.
The big economies. I
think certainly have a big responsibility as I said during the G20 meeting. And
when I was asked about the Chinese government's program and I would say China
is a big country with a large population, starting from a very low development
point and this ambitious objective of achieving carbon peeking by 2030 and carbon
neutrality by 2060
This is ambitious but
given the track record of China, you can believe if the government is committed
to do something, they would do it. What India is going to do. It is I think
important in terms of the demonstration effect when countries like China and
India with lots of challenges facing them can still.
Try to achieve the
objective. That should be a huge incentive to other countries to do the same.
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