The Asian Infrastructure Investment Bank (AIIB) and the Global Energy Alliance for People and Planet (GEAPP) are collaborating to mobilize up to US$1 billion for the financing of energy transition and renewable energy projects.

The partnership will see AIIB and GEAPP addressing energy transition challenges in Asia and beyond, by identifying co-financing opportunities and mobilizing private capital in grid-based renewables, distributed renewables, and fossil fuel transition. It follows extensive cooperation between the two over the past year and is the first time AIIB has partnered with a global philanthropic foundations-led initiative.

Capital will be directed to countries eligible for AIIB’s financing activities and projects that meet the multilateral development bank’s strategies and policies, while also being in line with GEAPP’s charitable objectives.

Simon Harford, chief executive officer of GEAPP, notes that clean energy generation grew by 522 terawatt-hours last year, about a quarter of what is needed to end energy poverty. However, most of this generation occurred in developed countries. “As a global multilateral development bank, AIIB has the capital, convening power and commitment to invest in innovative, clean energy projects across developing countries, which makes the bank an ideal partner to join GEAPP,” he says.

GEAPP is an alliance of philanthropic organizations, entrepreneurs and governments that seeks to support developing countries’ shift to clean energy and sustainable, inclusive growth. It aims to enable 150 million sustainable livelihoods, reduce 4 gigatonnes of future carbon emissions, and expand clean energy access to one billion people. Its philanthropic partners include IKEA Foundation, The Rockefeller Foundation, and Bezos Earth Fund.