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NGO Forum on ADB Letter to AIIB re: Finance in Common Joint Declaration

13 November 2020


Mr. Jin Liqun

President

Asian Infrastructure Investment Bank (AIIB)


Dear President Liqun;


NGO Forum on ADB, an Asian-led network of over 250 civil society around the World, has been monitoring Asian Infrastructure Investment Bank (AIIB) funded projects since its establishment in 2015. Our latest engagement is with the Bank is with its Environmental and Social Framework (ESF) review, where our network provided critical analysis of the framework highlighting the importance of more robust binding requirements for borrowers to environmental and social responsibility surrounding projects.


The network also recognizes that the AIIB is a post COP21 development bank, therefore having the opportunity to establish a new approach to infrastructure investment that prioritizes renewable energy, climate resilience, and sustainable development.


Also, the AIIB has repeatedly been making pronouncements that it ‘will not finance any projects that are functionally related to coal[1]’. The Bank is also a signatory of the ‘MDBs’ alignment approach to the objectives of the Paris Agreement: working together to catalyze low-emissions and climate-resilient development,’ a document proposing six building blocks that have been identified as the core areas for alignment with the objectives of the Paris Agreement [2].


However, with the recently concluded Finance in Common Summit, an event that seeks to contribute substantially to the success of the UNSG’s “Decade of Action,” the AIIB did not sign the Joint declaration of all Public Development Banks in the World.


NGO Forum on ADB is alarmed with AIIB’s decision not to commit to this critical and immediate declaration. Are management representatives of AIIB autonomous in dictating energy investments in Asia over their respective donor and borrowing members?


We are witnessing a significant shift in the appetite for fossil fuels, especially coal, across lower and middle-income countries across Asia. The US election results are also ushering a revival of the Paris agreement with China and others in the international system. The network is demanding the AIIB to reconsider and sign this significant declaration.


Respectfully,


Mr. Rayyan Hassan

Executive Director

NGO Forum on ADB


Endorsed by the following organizations:

Alyansa Tigil Mina (ATM), Philippines

Asian Peoples' Movement on Debt and Development (APMDD)

Bangladesh Working Group on External Debt (BWGED), Bangladesh

Center for Environment and Participatory Research CEPR, Bangladesh

CLEAN (Coastal Livelihood and Environmental Action Network), Bangladesh

Community Empowerment and Social Justice Network (CEMSOJ), Nepal

E3G Third Generation Environmentalism

Environics Trust, India

Environmental Public Society, Armenia

Equitable Cambodia, Cambodia

Food first Information and Action Network - FIAN Sri Lanka, Sri Lanka

Friends of the Earth Japan, Japan

Growthwatch, India

Indian Social Action Forum, India

Initiative for Right View, Bangladesh

Japan Center for a Sustainable Environment and Society (JACSES), Japan

Land lord bayanzurkh communally association, Mongolia

Mekong Watch, Japan

Nash Vek, Kyrgyzstan

Oyu Tolgoi Watch, Mongolia

Recourse, Netherlands

ResponsiBank Indonesia, Indonesia

Rivers without Boundaries International Coalition, Eurasia

Rivers. without Boundaries Coalition Mongolia, Mongolia

Sri Lanka Nature Group, Sri Lanka

VOICE, Bangladesh

WNGO, Mongolia

Youth For Environment Education And Development Foundation (YFEED Foundation),

Youth Group on Protection of Environment, Tajikistan

Nepal

 

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