The Asian Infrastructure Investment Bank (AIIB) and the National Bank for Financing Infrastructure and Development (NaBFID) have signed a letter of intent to advance the development of sustainable infrastructure in India, with a strong focus on climate adaptation and mitigation. This strategic agreement aims to accelerate the pace of climate-resilient infrastructure growth in line with national and global sustainability goals.
Through this partnership, AIIB and NaBFID will collaboratively identify and develop high-impact climate finance projects in key sectors such as renewable energy, energy storage, and clean transportation. The initiative will leverage both innovative and traditional financing mechanisms. It supports India’s ambition of becoming a USD 5-trillion economy and aligns with its nationally determined contributions under the Paris Agreement, reinforcing a path toward low-carbon and climate-resilient development.
The agreement emphasizes sustainability and climate resilience as guiding principles in selecting and implementing projects. The collaboration also intends to explore joint infrastructure investments by utilizing a combination of funded and non-funded instruments, including credit guarantees. This approach will be supported by knowledge exchange and the sharing of technical expertise between AIIB and NaBFID.
In addition to financing, the partnership will promote capacity-building efforts such as joint seminars, workshops, and research initiatives to enhance institutional capabilities in infrastructure planning, execution, and governance.
The letter of intent was formalized during the 10th Annual Meeting of AIIB, witnessed by senior officials from both institutions. This agreement lays a foundation for a broader thematic collaboration, enabling both AIIB and NaBFID to contribute more effectively to India’s sustainable infrastructure transformation in accordance with their institutional mandates.
