The Asian Infrastructure Investment Bank (AIIB) has approved a $1 billion Climate-Focused Policy-Based Financing loan to support the Government of Brazil’s actions toward achieving its climate goals under its Nationally Determined Contributions, AIIB announced. The financing will support policy and institutional measures that help implement Brazil’s Ecological Transformation Plan in sustainable finance, energy transition and green and resilient infrastructure. Brazil’s reform program “couples policy ambition with practical market reforms,” said Jin Liqun, President and Chair of the Board of Directors at AIIB.
“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,” Liqun added.
Tatiana Rosito, Vice Minister for International Affairs at the Ministry of Finance and AIIB Alternate Governor for Brazil, said the partnership is helping turn policy into progress by 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 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 improve 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-greenhouse-gas 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 from 2023, which reframes natural ecosystems as core infrastructure assets, and its Infrastructure for Planetary Health Report from 2025, which integrates infrastructure investment with human, environmental and climate health outcomes.
“Through this CPBF, Brazil and AIIB are demonstrating that climate action and development go hand in hand,” said Rosito. The loan represents one of AIIB’s largest climate-focused policy investments and reflects the bank’s growing engagement in Latin America. The financing aims to help Brazil meet its climate commitments while supporting economic development and protecting critical ecosystems like the Amazon rainforest.
