The Asian Infrastructure Investment Bank (AIIB) and Amundi, Europe’s largest asset manager, have announced a US$500 million Asia Climate Bond Portfolio, which aims to accelerate climate action in the bank’s members and address the underdevelopment of the climate bond market. The Asia Climate Bond Portfolio will invest in labelled green bonds and unlabelled climate bonds and engage with issuing companies to help them transition their business models to increase climate resilience and green leadership. Amundi and AIIB have developed a Climate Change Investment framework, which takes into account three variables - portion of green business activities, climate mitigation and resilience to climate change - to analyze issuers’ ability to cope with climate change. In July, AIIB announced a US$500 million portfolio that aims to develop debt capital markets for infrastructure, drive responsible investing in fixed income, and build a sustainable ESG ecosystem in emerging markets in Asia. The Asia Climate Bond Portfolio will begin investing in January 2020.

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