According to the bank document, the project seeks to address the underdevelopment of the climate bond market in AIIB members through a managed fixed income portfolio of US$ 500 million. It expects to mobilize another US$ 500 million from climate change-focused institutional investors. The project also seeks to allocate a portion of the investment proceeds for market education, engagement and issuer support.
The project seeks outperformance by identifying, analyzing and selecting climate champions—issuers who are well placed to thrive in the coming climate change environment. The selection of climate champions will be based on the Climate Change Assessment Framework. The Asia Climate Bond Portfolio has four main objectives:
1. Increase climate finance flows for sustainable infrastructure in emerging market (EM) Asia through the debt capital markets by identifying and investing in climate champions.
2. Create a Climate Change Assessment Framework to assess climate change investment risk and opportunity and fulfill the Paris Agreement’s objectives.
3. Catalyze and mobilize investment from one or more climate change-focused institutional investors, which will further validate the Climate Change Assessment Framework.
4. Provide market education and engage with B-list issuers to support their transformation to become A-list climate champions.
A Separately Managed Account of US$500 million
1/ AIIB Contact: Stefen Shin
Title: Senior Financial Institutions Relationship Officer
Email address: email@example.com
2/ Investment Advisor Contact: Vanessa Wang
Title: MD and Head of North Asia Institutional Business, Amundi
Email address: Vanessa.firstname.lastname@example.org
In view of the derogation from the application of AIIB’s, the Policy on the Project-Affected People’s Mechanism (PPM) would also not apply to this project.
ACCOUNTABILITY MECHANISM OF AIIB
In addition, the AIIB has a Bank Oversight Mechanism. According to AIIB's policies, "people who believe they have been or are likely to be adversely affected by a failure of the Bank to implement the ESP may also submit complaints to the Bank's oversight mechanism in accordance with the policies and procedures to be established by the Bank for such mechanism." However, at the time of writing, it is unclear what the exact scope and function of this Oversight Mechanism will be.