The World Bank's new Environmental and Social Framework, four years in the making, is designed to ensure that the approximately $30 billion the bank invests each year goes to projects that are safe for people and the environment. This framework is likely to have an impact on the policies of other development banks and governments around the globe.
People watched closely when China launched the Asian Infrastructure Investment Bank (AIIB) last year, with a mandate to be “lean, clean and green.” After its first annual general meeting and seminars this week, it appears that the AIIB is starting to move in a positive direction.
The new Asian Infrastructure Investment Bank has committed to being "lean, clean and green." Will its new Environmental and Social Framework achieve that goal? Researchers Gaia Larsen and Sean Gilbert investigate.
China recently issued its first directive on “green bonds,” funds exclusively applied to finance new and existing green infrastructure projects. The new standards should help scale up the use of green bonds and usher in new low-carbon projects like renewable energy and public transit systems.
China will need investments in the order of $330 billion (RMB 2 trillion) a year from 2015-2030 to overcome its environmental challenges. Tapping the private sector can help scale up the country's green finance.