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Paper short abstract:

Facing financing deficits in tackling the climate crisis, this research will analyze the strategies of the Asian Infrastructure Investment Bank (AIIB) for supporting green financing, its contributions to expanding green financing, and the resulting environmental implications in Asia.

Paper long abstract:

Facing financing deficits in tackling the climate crisis, this research will analyze AIIB’s strategies for supporting green financing, its contributions to expanding green financing, and the environmental implications in Asia.

Research Questions

1. What is the role of AIIB in promoting green financing?

2. What are the measurable effects of AIIB in supporting clean energy, renewable energy, and decarbonization in Asia?

Expected findings

1. Policy Impact Evaluation: Analyze the role of AIIB in promoting clean energy access, decarbonization, and climate change mitigation. (1) Addressing Development Financing Gaps: Evaluate how AIIB helps bridge the shortfall in development financing, particularly for clean energy projects in Asia. (2) Enhanced Creditworthiness: Examine AIIB’s strategy in international capital markets, such as issuing bonds backed by equity (paid-in capital and reserves) and callable capital (Chen and Yang, 2015). Highlight how callable capital contributions from high-rated countries like China strengthen AIIB’s credit rating and enable financing for projects in low-rated countries. (3) Non-Interference Policy: AIIB’s policy neutrality contrasts with the macro-financial frameworks of the Washington Consensus (WC) and Wall Street Consensus (WSC), which emphasize independent central banks, fiscal restraint, capital mobility, and deregulated finance.

These frameworks weaken the developmental state capacity to implement capital controls and enforce strong regulatory enforcement (Gabor and Sylla, 2023). In contrast, AIIB’s policy neutrality facilitates immediate green financing solutions to address the urgent climate crisis.

2. Quantitative Impact Assessment: Measure the concrete contributions of AIIB and Chinese development finance institutions to emissions reduction and clean energy access in Asia.