DUBLIN - Allied Irish Banks (AIB) has announced a significant expansion of its Climate Action Fund, committing to increase the fund to €30 billion, a move that is set to triple its current size. This ambitious initiative underscores the bank's commitment to financing green infrastructure projects and aligning its lending practices with environmental sustainability goals.
At its seventh Sustainability Conference held in Dublin, which was attended by over 6,000 online viewers, AIB's CEO Colin Hunt emphasized the urgency of addressing climate change. The conference featured prominent speakers including former New Zealand Prime Minister Jacinda Ardern and comedian Trevor Noah, who both highlighted the pressing global environmental challenges.
AIB is on track to fully allocate the existing €10 billion fund by the end of this year. Since establishing the Climate Action Fund in 2019 with an initial annual lending target of €1 billion over five years, AIB has demonstrated a strong commitment to supporting the transition towards a low-carbon economy. The fund received an additional €5 billion after just two years due to its successful uptake.
The bank's efforts have been further bolstered by its foray into green bonds, with AIB becoming the first Irish bank to issue such an instrument in 2020. Over the past three years, it has raised €4 billion from green bond sales and secured a total of €5.75 billion for Environmental, Social, and Governance (ESG) initiatives when including social bonds.
AIB's strategy is not only focused on increasing green financing but also on ensuring that by 2030, 70% of its new lending will be environmentally focused. This aligns with the International Monetary Fund's (IMF) report highlighting the necessity for private sector investment in Ireland's climate infrastructure, which estimates annual costs at €20 billion (EUR1 = USD1.0922) over the next decade.
CEO Colin Hunt reiterated AIB's ambition for a zero-carbon future and stressed that immediate action is crucial following recent extreme weather events around the world.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.