The Asian Infrastructure Investment Bank (AIIB) has approved a USD1 billion Climate-Focused Policy-Based Financing (CPBF) loan in support of the Government of Brazil’s actions toward achieving its climate goals under its Nationally Determined Contributions. The financing will support policy and institutional measures that facilitate implementation of Brazil’s Ecological Transformation Plan in sustainable finance, energy transition and green and resilient infrastructure.
Announcing the investment, Jin Liqun, President and Chair of the Board of Directors, AIIB, said Brazil’s reform program “couples policy ambition with practical market reforms,” adding that “AIIB’s support will help channel more private capital into sustainable finance, accelerate the energy transition, and build climate-resilient infrastructure—delivering tangible benefits for people, nature and the economy.”
“Through this CPBF, Brazil and AIIB are demonstrating that climate action and development go hand in hand,” said Tatiana Rosito, Vice Minister for International Affairs at the Ministry of Finance and AIIB Alternate Governor for Brazil. “This partnership is helping us turn policy into progress – creating markets for sustainable finance, advancing carbon market and blended-finance mechanisms such as Eco Invest Brasil, driving the energy transition, and recognizing nature as essential infrastructure for a resilient future.”
Under the CPBF, reforms are organized across sustainable finance, energy transition, and green and resilient infrastructure—three pillars that together direct public and private capital toward low-carbon growth and biome regeneration; promote competitive, sustainable bioenergy with robust value chains; and enhance the resilience of critical natural assets and infrastructure. Expected results include establishing governance for a national carbon market, mobilizing private resources for sustainable infrastructure and forest conservation, producing low-GHG sustainable aviation fuel, deploying early-warning systems for extreme heat, and strengthening forest and mangrove restoration.
The project applies AIIB’s operational policies for CPBF and will complement policy loans of the World Bank and the Inter-American Development Bank. Semi-annual program reviews will track prior actions and results, consistent with the Program’s agreed framework.
This initiative builds on AIIB’s previous analytical work – including its Nature as Infrastructure Report (2023), which reframes natural ecosystems as core infrastructure assets, and its Infrastructure for Planetary Health Report (2025), which integrates infrastructure investment with human, environmental and climate health outcomes.
About CPBF
On June 26, 2024, AIIB’s Board of Directors approved the Climate-Focused Policy-Based Financing (CPBF) instrument within the Bank’s Sovereign-Based Financing suite. CPBF supports Member-led policy and institutional reform programs that scale climate finance and accelerate transitions to a low-carbon, climate-resilient future. It prioritizes reforms that increase adaptation finance, mobilize private capital, and expand pipelines of bankable infrastructure investments. The instrument is client demand-driven, offered on a standalone basis or in collaboration with partners, and is designed to strengthen cooperation with other multilateral development banks to unlock both public and private climate financing. By introducing CPBF, AIIB advances its Climate Action Plan, aligns with the Paris Agreement, and delivers on its Corporate Strategy objectives.
About AIIB
The Asian Infrastructure Investment Bank is a multilateral development bank dedicated to financing “Infrastructure for Tomorrow,” with sustainability at its core. AIIB began operations in 2016, now has 110 approved members worldwide, is capitalized at USD100 billion, and is AAA-rated by major international credit rating agencies. AIIB collaborates with partners to mobilize capital and invest in infrastructure and other productive sectors that foster sustainable economic development and enhance regional connectivity.
