India’s Infrastructure Gets a Climate Upgrade—AIIB and NaBFID Sign Game-Changing Pact

Image Source : AIIB

In a historic breakthrough, the Asian Infrastructure Investment Bank (AIIB) and the National Bank for Financing Infrastructure and Development (NaBFID) on July 16, 2025, signed a Letter of Intent to bolster climate finance and green infrastructure growth in India. The signing at AIIB's 10th Annual Meeting is an indication of increased focus on green growth.

Key highlights:

The partnership will focus on highimpact projects in clean transport, renewable energy, and energy storage
The two institutions will use a mix of new and conventional financing tools, including guarantees and coinvestments
The partnership aligns with India's vision of a USD 5trillion economy and nationally determined climate goals
Thematic priority of AIIB on Green Infrastructure and NaBFID mandate for longterm infrastructure financing align with this initiative
Institutional capacitybuilding activities will involve joint seminars, workshops, and research programs for capacity building
The transfer of technical knowledge is expected to enhance project implementation, planning, and climate resilience

Galvanizing ClimateResilient Infrastructure

This partnership has the goal of creating a pipeline process of catalytic projects that not only reduce carbon footprints but also promote sustainable and inclusive growth. Through the synergy of their respective institutional strengths, AIIB and NaBFID are best placed to unleash scalable climate solutions and mobilize private capital for India's infrastructure revolution.

Sources: AIIB, NaBFID, Reuters, Economic Times, Business Standard, Public Technologies.