Asian Infrastructure Investment Bank

Energy access and fuel poverty

This page is part of the E3G Public Banks Climate Tracker Matrix, our tool to help you assess the Paris alignment of public banks, MDBs and DFIs

 

 

 

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Paris alignmentReasoning
UnalignedAIIB has included energy access within its wider energy strategy, but has not set a Bank-specific target and progress monitoring does not account for clean or modern energy.
 Alignment and teasoning
Energy access targetCommitted to working toward Sustainable Energy for All (SE4All) and Paris Agreement goals but makes no internal access goal.
Minimum definition of accessBank policy is not specifically aligned with SE4All’s Multi-Tier Framework.
% of energy financing dedicated to energy accessN/A – clarification welcome.
Is progress monitoredProgress on general energy access is monitored against three indicators: total capacity installed, number of households to receive energy access and transmission and distribution lines financed.   Notably, this monitoring does not specifically monitor the implementation of clean or modern energy.
Progress against metricsProgress is monitored based on the Revised Results Monitoring Framework, which does not account for clean or modern energy.

Explanation

The AIIB Environmental and Social Framework mentions the importance of affordable energy action.  The Bank particularly calls attention to securing access to affordable energy for vulnerable or disabled persons and disadvantaged groups. The emphasis on affordable rather than clean energy is notable.

The Bank’s energy strategy paper states that increasing energy access in line with SE4All indicators and SDG 7 (universal access to clean, affordable, reliable energy by 2030) while maintaining Paris goals is a main objective for the strategy. Under the document’s Global Energy Landscape summary dating from 2017, the Bank acknowledges the importance of reliable energy access for increasing opportunity amongst the poor and disadvantaged, especially women and young girls.  The Bank goes so far as to aim for ‘modern’ energy to be made easily accessible, meaning the Bank aims to support members in developing universal energy beyond necessity and production requirements, allowing for heating/cooling as well as personal transport.

Since 2018 the Bank has begun the approval process for several country level initiatives to develop stronger energy systems to increase access and security, amongst other goals, in Bangladesh, Cambodia and Nepal. Also, the Bank connects the increase of energy access to renewables and energy efficiency, citing the two advances will make modern energy access easier to realise on a broad scale. In 2019 alone, the Bank financed 10 projects specifically targeting SDG7, eight of which included mitigation or adaptation functions.

Despite the Bank’s approach to energy access being inspired by the SE4All Framework and the goals of SDG7,  the Results Monitoring Framework  for energy access does not integrate the Multi-Tier Framework or mention clean and modern energy access within member countries. The overall approach includes lowering the carbon intensity of the overall energy system, but without reference to access efforts.

Recommendation: AIIB should set an internal energy access goal in line with SE4All’s Multi-Tier Framework, to guide energy-related projects.

Recommendation: AIIB should make available progress on energy access data, and all MDBs should consider commissioning a joint report on their progress across SE4All metrics.

Last Update: November 2020

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