National Bank for Financing Infrastructure and Development Sign Letter of Intent to Accelerate Climate Financing, Sustainable Infrastructure Projects in India – Asian Infrastructure Investment Bank (AIIB)

Report on the Strategic Partnership Between AIIB and NaBFID for Sustainable Development in India

Introduction: A Partnership for the Goals (SDG 17)

The Asian Infrastructure Investment Bank (AIIB) and the National Bank for Financing Infrastructure and Development (NaBFID) have formalized a strategic partnership through a letter of intent. This collaboration is designed to accelerate the development of sustainable infrastructure in India, directly supporting the United Nations’ Sustainable Development Goals (SDGs). The agreement establishes a framework for joint efforts that align with India’s national development and climate objectives, representing a significant commitment to SDG 17 (Partnerships for the Goals).

Core Objectives and Alignment with Key SDGs

The partnership’s primary focus is to channel investment into projects that advance multiple SDGs. The collaboration will prioritize sustainability and climate resilience throughout the project lifecycle, from selection to implementation.

Key Thematic Areas and SDG Contributions

1. Climate Action (SDG 13): A central pillar of the agreement is the joint identification and development of projects focused on climate adaptation and mitigation. This directly supports India’s nationally determined contributions and promotes a low-carbon, climate-resilient growth model, which is the core target of SDG 13.
2. Affordable and Clean Energy (SDG 7): The partnership will target investments in key sectors such as renewable energy and energy storage. These initiatives are critical for increasing the share of renewable energy in the global energy mix, a primary objective of SDG 7.
3. Industry, Innovation, and Infrastructure (SDG 9): By fostering resilient, sustainable, and high-impact infrastructure, the collaboration directly contributes to SDG 9. The focus extends to clean transportation, which is vital for building sustainable infrastructure that supports economic development and human well-being.
4. Sustainable Cities and Communities (SDG 11): Investments in clean transportation and resilient infrastructure will enhance the sustainability of India’s urban and rural areas, aligning with the goals of SDG 11.
5. Decent Work and Economic Growth (SDG 8): The initiative supports India’s ambition to become a USD5-trillion economy by catalysing infrastructure financing. This large-scale investment is expected to drive sustainable economic growth and create productive employment, in line with SDG 8.

Implementation Mechanisms and Capacity Building

To achieve these objectives, the partnership will employ a multi-faceted approach that strengthens institutional capabilities and mobilizes capital effectively.

• Joint Financial Instruments: The collaboration will facilitate joint infrastructure investments by applying a range of funded and non-funded instruments, including guarantees and both innovative and conventional financing solutions.
• Technical Expertise Exchange: A key component of the partnership involves the mutual exchange of technical expertise, enhancing the capacity of both institutions to plan and execute complex, sustainable infrastructure projects. This knowledge sharing is a practical application of SDG 17.
• Capacity-Building Initiatives: The agreement includes provisions for joint seminars, workshops, and research programs. These activities are designed to strengthen institutional capabilities in infrastructure planning and execution, ensuring long-term success and sustainability in achieving the SDGs.

Institutional Commitment to the 2030 Agenda

Both AIIB and NaBFID have mandates that are deeply aligned with the principles of sustainable development.

• AIIB: As a multilateral development bank dedicated to financing “Infrastructure for Tomorrow,” AIIB places sustainability at its core. This partnership aligns with its thematic priority on Green Infrastructure.
• NaBFID: Established to address the long-term financing needs of India’s infrastructure sector, NaBFID aims to be a catalyst for transformative growth and a key provider of impact investment, playing a pivotal role in helping India achieve its development objectives responsibly and sustainably.

This collaboration lays the foundation for thematic-level cooperation, enabling both institutions to make substantial contributions to India’s infrastructure transformation and its progress toward the Sustainable Development Goals.

Analysis of Sustainable Development Goals (SDGs) in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 7: Affordable and Clean Energy

  The article directly addresses this goal by stating the partnership will develop projects in “renewable energy” and “energy storage,” which are fundamental to ensuring access to clean energy.

• SDG 9: Industry, Innovation and Infrastructure

  This is a core SDG for the article, as the partnership’s primary purpose is to “foster joint efforts to develop sustainable infrastructure in India” and accelerate “infrastructure transformation.”

• SDG 11: Sustainable Cities and Communities

  The goal is connected through the specific mention of financing “clean transportation” projects, a key component for creating sustainable urban environments.

• SDG 13: Climate Action

  This goal is central to the article, which repeatedly emphasizes “climate adaptation and mitigation,” “climate financing projects,” “low-carbon and climate-resilient growth,” and alignment with India’s “nationally determined contributions.”

• SDG 17: Partnerships for the Goals

  The entire article describes a strategic partnership between a multilateral development bank (AIIB) and a national financial institution (NaBFID) to achieve common development goals, including mobilizing capital and conducting “capacity-building initiatives.”

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.

   The partnership’s plan to finance projects in “renewable energy” directly supports this target.

2. Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure… to support economic development and human well-being.

   The article’s focus on developing “sustainable infrastructure” and “climate-resilient infrastructure” to drive “economic growth” aligns perfectly with this target.

3. Target 9.a: Facilitate sustainable and resilient infrastructure development in developing countries through enhanced financial, technological and technical support.

   The collaboration between the international AIIB and India’s NaBFID to “facilitate joint infrastructure investments” and enable the “exchange of technical expertise” is a direct implementation of this target.

4. Target 11.2: By 2030, provide access to safe, affordable, accessible and sustainable transport systems for all.

   The specific mention of developing “clean transportation” projects contributes to achieving this target.

5. Target 13.1: Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries.

   The emphasis on “climate adaptation” and building “climate-resilient infrastructure” directly addresses the need to strengthen resilience.

6. Target 13.2: Integrate climate change measures into national policies, strategies and planning.

   The article states the partnership supports India’s “nationally determined contributions” and reinforces the “government’s national climate action agenda,” showing an integration of climate measures into national strategy.

7. Target 17.3: Mobilize additional financial resources for developing countries from multiple sources.

   The partnership aims to “mobilize capital and invest in infrastructure” and “facilitate joint infrastructure investments,” which exemplifies mobilizing financial resources from multilateral and national sources.

8. Target 17.9: Enhance international support for implementing effective and targeted capacity-building in developing countries.

   The article explicitly mentions that the partnership will include “capacity-building initiatives, including joint seminars, workshops, and research programs that will help strengthen institutional capabilities.”

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Financial Investment: The amount of capital mobilized and channeled into specific sectors is an implied indicator. The article refers to “high-impact climate financing projects” and “joint infrastructure investments” in areas like renewable energy and clean transport.
• Partnership Formalization: The signing of the “letter of intent” is a direct indicator of a formal partnership being established to achieve the goals (relevant to SDG 17).
• Development of Financial Markets: The stated aim to “develop a deep and liquid market for bonds, loans, and derivatives for infrastructure financing” can serve as an indicator of strengthening financial systems for sustainable development.
• Capacity-Building Activities: The number and scope of “joint seminars, workshops, and research programs” conducted are measurable indicators of progress towards strengthening institutional capabilities.

4. Table of SDGs, Targets, and Indicators

Source: aiib.org