AIB is tripling to €30 billion its climate action fund, which lends to projects that support the green transition.
The bank said financing investment in climate and energy infrastructure was crucial to cementing the transition to a low-carbon economy. It highlighted a recent report by the International Monetary Fund, which estimates the cost in Ireland alone would amount to about €20 billion annually over the next decade, much of which will come from the private sector.
AIB said it is on track to allocate all its existing €10 billion climate action fund by the end of this year. The bank is targeting that 70 per cent of its new lending will be green or transition by 2030.
AIB’s annual sustainability conference takes places on Monday in Dublin with former New Zealand prime minister Jacinda Ardern and comedian Trevor Noah among the keynote speakers.
“The floods and fires we have seen around the world this year have reminded us yet again of the importance of protecting our people, our planet and our prosperity from the devastating impacts of climate change,” AIB chief executive, Colin Hunt, said.
“At AIB, we recognise that now is the time to take further action to support our customers by increasing our climate action fund to €30 billion to help build the green infrastructure of the future,” he said.
Furthermore, we are also putting in place plans to align activity across the group to focus on climate capital, increasing and enhancing our capability in this area, supporting delivery of our €30 billion commitment and our ambition to be a driving force in the transition to a zero-carbon future,” Mr Hunt said.