AIIB to boost sustainable investment with Luxembourg meeting

Luxembourg will work closely with the AIIB to boost sustainable investment and improve connectivity between regions, its finance minister has said.

The grand duchy's finance minister, Pierre Gramegna, was speaking on Tuesday after signing a Memorandum of Understanding (MoU) with Sir Danny Alexander, vice-president and corporate secretary of the Asian Infrastructure Investment Bank (known as AIIB).

Following China, South Korea and India, Luxembourg will host the AIIB's 2019 annual meeting on July 12-13, the bank's first annual meeting in Europe. The theme next year is "Cooperation and Connectivity" in recognition of the economic and social benefits to be realized by enhancing connectivity within and between countries and regions, including Asia and Europe.

Established in 2015 with a total initial capital of $100 billion, the AIIB currently has 87 member countries from all over the world, including 18 European Union member states. Luxembourg was the first European country to join the AIIB as one of its 57 founding members.

The annual meeting will gather the AIIB's governors and directors, along with delegations from member countries, partner institutions, business leaders, civil society and experts from a range of fields, according to Gramegna.

The Luxembourg Finance Ministry estimates that almost 2,000 stakeholders will discuss the bank's development plans, especially on green financing and sustainable infrastructure.

The second Asian Infrastructure Forum will also be held as part of the annual meeting next year. In addition, a series of lead-up events will take place in the first half of 2019 at the Luxembourg Chamber of Commerce and several other European member countries of the AIIB.

"As a leading global center of finance and innovation, we look forward to strengthening cooperation on strategic investments in sustainable infrastructure, especially developing innovative financing solutions, which will contribute to deeper integration and stronger economic growth," said Gramegna.

The idea is to leverage Luxembourg's position as an international financial center that already today bridges international financial gaps, and more specifically between Europe and Asia, he added.

"The potential of sustainable infrastructure is not limited to within the region it is located, and further cross-border cooperation will only strengthen international trade and contribute to fighting climate change," he said.

Since its launch in 2016, and under its pledge to be 'lean, clean and green', the Beijing-based bank has financed 34 projects, focusing particularly on sustainable infrastructure.

"Sustainability and the environment are crucial. By working together as a rules-based multilateral institution, we can help solve some of major problems in Asia and beyond," Alexander said.

Alexander said Luxembourg is an ideal choice for the bank to host its first annual meeting outside the region, as it already hosts several EU institutions, including the European Investment Bank and the European Stability Mechanism.

In addition to closer ties between European countries and the bank, the AIIB's vice-president said that the meeting will be a great opportunity for EU institutions to deepen multilateral cooperation with the 87-member states of the bank and strengthen ties between Europe and Asia in particular.

Liu Jia contributed to this story.