On June 26, 2024, the AIIB Board of Directors approved the introduction of Climate-Focused Policy-Based Financing (CPBF) as part of the Bank's suite of Sovereign-Based Financing (SBF) instruments. This new financing option aims to support AIIB Members in their efforts to achieve their national climate transition objectives.

The CPBF will support Member-led policy and institutional reform programs that are aimed at scaling up climate finance and accelerating Members' transition to a low-carbon and climate-resilient future. It will prioritize reforms that increase adaptation finance, mobilize private capital, and increase the supply of bankable infrastructure investments.

The CPBF is envisioned to be a client demand-driven instrument that AIIB can offer either as a standalone financing option or in collaboration with other partners. It will also enable AIIB to collaborate more closely with other multilateral development banks, leveraging their financial capacity and financing instruments to unlock climate financing from both the public and private sectors.

By introducing the CPBF, AIIB will simultaneously advance the implementation of its Climate Action Plan, align with the Paris Agreement, and achieve its Corporate Strategy objectives.