Climate Rising Financing Climate and Nature Together: AIIB’s Climate Strategy in Brazil and Beyond
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Jan 7, 2026 In a captivating discussion, Erik Berglöf, Chief Economist at AIIB, dives into innovative climate financing for emerging economies. He highlights AIIB's strategy, focusing on infrastructure decarbonization and biodiversity credits, particularly in Brazil’s $1B climate policy loan. Erik emphasizes the importance of integrating climate and nature in development finance and discusses EcoInvest's role in attracting private capital. He also sheds light on Brazil’s ambitious emissions targets and the critical role of finance ministries in leading climate action.
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Ambitious Climate Targets Work
- AIIB set a corporate target of 50% climate finance by 2025 and exceeded it, reaching about 67% last year.
- This shows a development bank can rapidly reorient lending toward climate priorities when aligned with strategy.
Blend Instruments And Tie Funds To Results
- Use a mix of instruments: project finance, results-based finance, and climate policy-based lending to support government reforms.
- Tie disbursements to policy milestones using a clear policy matrix to incentivize delivery.
Climate And Nature Are Now Linked
- COP30 strengthened the linkage between climate and nature, elevating their joint role in future COP agendas.
- The Tropical Forest Forever Facility was a major Brazilian achievement to protect and restore tropical forests.