2024-07-03 00:34:11
By initiatives, the Asian Infrastructure and Funding Financial institution (AIIB) goals to assist Azerbaijan implement its nationwide agenda in step with the targets of COP29.
Vice President and Company Secretary of AIIB Ludger Schuknecht stated this in an unique interview with Development.
“The AIIB locations a specific concentrate on infrastructure that contributes to each local weather change mitigation and adaptation. To realize this, we make investments closely in renewable vitality and inexperienced infrastructure, which is our core competency. We’re additionally engaged in digital connectivity initiatives, equivalent to upgrading telecommunications networks, roads, railways and ports, all whereas sustaining environmental sustainability. We’re additionally excited to debate COP29, as preparations proceed and the agenda is being finalized. Our aim right here is to discover Azerbaijan’s priorities and the way our financial institution can help Azerbaijan in reaching them,” Schuknecht stated.
The Paris Settlement is essential on this regard, he stated, guaranteeing that each one initiatives adjust to nationwide commitments underneath it and excessive environmental, social and governance requirements.
“These measures will allow the AIIB to help its member nations and purchasers in reaching their local weather targets. I imagine that the AIIB, together with our multilateral growth companions such because the World Financial institution and the Asian Improvement Financial institution, will stand able to help the COP29 agenda and Azerbaijan. There can be a have to implement agreements reached at earlier conferences, and naturally there’s all the time a need to develop new concepts or plans. I believe Azerbaijan is ideally positioned to facilitate such efforts to construct consensus, convey stakeholders collectively and coordinate efforts to realize widespread targets,” the Vice President added.
Ludger Schuknecht additionally spoke concerning the goal of his go to to Azerbaijan. “The Company Secretary is basically the hyperlink between the homeowners, shareholders, administration and operations of the financial institution. With this mandate, we guarantee the graceful operating of all board conferences and our fundamental occasion, the annual assembly. Lastly, you will need to notice that the AIIB Company Secretary adheres to excessive requirements of company governance to make sure integrity in administration. COP29 is definitely a serious occasion, and this is among the the explanation why I’m in Azerbaijan. Another excuse is the significance of periodic visits to our shareholders. That is my first go to, primarily as a result of COVID-19 prevented us from touring to fulfill with the financial institution’s members, which led to a delay in work, which we are actually eliminating. As well as, we have now an annual assembly scheduled for the tip of September this yr in Uzbekistan. We hope that Azerbaijan will host a preparatory occasion for these annual conferences and guarantee a powerful illustration there,” he stated.
Schuknecht famous that the AIIB is working to contribute to the event of inexperienced finance in world monetary markets: “On the monetary aspect, the AIIB is dedicated to excessive environmental, social and governance requirements and requires compliance with the Paris Settlement. All of the bonds we problem and the financing we offer are inexperienced and sustainable. By our financing actions and fundraising efforts, we’re contributing to the event of inexperienced finance in world monetary markets.”
In line with him, the financial institution, inside the framework of its initiatives, is engaged in monetary intermediation, which includes direct financing of initiatives, in addition to financing of banks and different monetary intermediaries.
“We offer fairness, debt and monetary bonds to allow these establishments to finance high-quality, climate-friendly infrastructure. For instance, one in all our initiatives includes investing in adaptation by offering fairness capital to firms in search of to enhance adaptation to local weather change. We additionally handle a bond fund targeted on buying bonds completely from firms that meet the AIIB’s rigorous ESG requirements,” the vp defined.
Schuknecht talked about that the AIIB additionally helps firms in enhancing their requirements and growing markets for inexperienced merchandise.
“For instance, we’re concerned in securitization and fairness investments. These monetary devices play an important position in facilitating the transition to a greener economic system. We’ve purchasers in middle-income nations and even in higher-income nations. Nonetheless, we additionally need to be certain that low-income nations have entry to financing from our financial institution. We have to steadiness this with the general danger of our portfolio, so we will allocate a restricted quantity of financing to such nations. On this regard, we prioritize working with higher-rated nations for our initiatives,” Schucknecht famous.
He additionally careworn that to help low-income nations, the AIIB supplies monetary help equivalent to mission preparation financing and concessional financing.
“This help can come immediately from us or from different member nations that contribute to those initiatives. Though the help accessible to the poorest nations is proscribed, it does exist,” the vp added.
Summing up, he added that Azerbaijan, by internet hosting COP29 and actively involving its ministries within the negotiations, will change into a frontrunner within the local weather change agenda.
“We hope that Azerbaijan may also use this chance to develop and strengthen its climate-related infrastructure and capability. Thus, bringing folks collectively, strengthening consensus and growing concepts inside the COP29 agenda can be Azerbaijan’s fundamental contribution on this regard. We’re proud to be right here, to take part within the discussions and to help Azerbaijan’s local weather agenda. By doing this, we goal to contribute to reaching the targets of the convention,” Ludger Schuknecht concluded.