BAKU, Azerbaijan, November 10. The Asian Infrastructure Investment Bank (AIIB) has approved a USD 1 billion Climate-Focused Policy-Based Financing (CPBF) loan to support Brazil’s efforts to meet its climate goals under the country’s Nationally Determined Contributions, Trend reports via AIIB.
The financing will back policy and institutional reforms aimed at advancing sustainable finance, energy transition, and green, resilient infrastructure through Brazil’s Ecological Transformation Plan.
Jin Liqun, AIIB President and Chair of the Board, said the program “couples policy ambition with practical market reforms,” adding that the support will help channel private capital into sustainable finance, accelerate energy transition, and build climate-resilient infrastructure, delivering tangible benefits for people, nature, and the economy.
Tatiana Rosito, Vice Minister for International Affairs at Brazil’s Ministry of Finance, noted that the CPBF demonstrates how climate action and development can go hand in hand. She highlighted that the partnership is helping create markets for sustainable finance, develop carbon market mechanisms, advance blended finance initiatives like Eco Invest Brasil, and support low-carbon growth and biome regeneration.
The CPBF will focus on three pillars: sustainable finance, energy transition, and green and resilient infrastructure. Key expected outcomes include establishing governance for a national carbon market, mobilizing private resources for sustainable infrastructure and forest conservation, producing low-GHG sustainable aviation fuel, deploying early-warning systems for extreme heat, and strengthening forest and mangrove restoration.
The program will be reviewed semi-annually, complementing existing policy loans from the World Bank and the Inter-American Development Bank, while building on AIIB’s research on natural ecosystems as infrastructure and the integration of infrastructure investment with environmental and climate health outcomes.