The Asian Infrastructure Investment Bank has pledged to use its investments to help members fulfil their commitments to the Paris climate accord, from which the U.S. is withdrawing.
"The two leaders agreed on the importance of the AIIB's investments in infrastructure for development of the region and to expand their cooperation through the bank as the two countries are major members".
The AIIB is Beijing's answer to the Asian Development Bank led by Japan and the World Bank, which is heavily influenced by the United States.
Finance Minister attends annual meeting of AIIB in S. Korea Sat, Jun 17, 2017, 12:52 pm SL Time, ColomboPage News Desk, Sri Lanka.
China and South Korea put aside hard feelings over Beijing's objections to a US anti-missile system to join an annual meeting Friday on the South Korean island of Jeju of a China-backed Asian lending bank. "This demonstrates confidence in the governance and management of the institution", said Jin, alluding to the decision to include Argentina, Madagascar and Tonga as new member states.
AIIB President Jin Liqun delivers a speech at the opening ceremony of the second annual meeting of governors at the International Convention Center in Seogwipo, Jeju Island, Friday. The Chinese Finance Ministry had repeatedly turned down South Korean requests for meetings after a dispute arose over the THAAD issue.
"Because of that leanness, AIIB is more contributing to deals that were originated by others", said Nena Stoiljkovic, vice president for blended finance and partnerships at the World Bank's International Finance Corporation and the most senior World Bank official to attend the AIIB meeting.
While the Asian lending bank pledged to support "low-carbon energy", in a report earlier this year, it said the bank also might support oil- or coal-fired power plants if they replace less-efficient facilities or no other options are available. "Interest in the bank remains high and our door remains open to new members that will be joining later this year".
The bank began operations 18 months ago and has approved $2.5 billion in loans. "Given to its young age, I would give it a good score of more than 90 points out of 100", said Hamad Albazai, deputy finance minister of Saudi Arabia. In his debut speech at an global conference, Moon said South Korea will sharply increase its reliance on renewable energy to 20 percent by 2030 from about 5 percent in 2015. The third annual meeting was scheduled to be held in India in June 2018.
The government official added that a dinner event held Friday, which was hosted by Finance Minister Kim, was very successful.