The AIIB Watch documents environmental and human rights conflicts arising from infrastructure projects financed by the Asian Infrastructure Investment Bank (AIIB).
Status: Approved
Timeframe: 2025-?
Area: India
AIIB Investment Amount: 150 million USD in INR equivalent
Total Project Cost: 150 million USD
Co-financier: -
E&S Category: FI
Project details: The project aims provide 150 million USD in INR equivalent in debt financing to Aditya Birla Finance Limited (ABFL), a 100% subsidiary of Aditya Birla Capital Limited, to support renewable energy and e-mobility projects in India, fostering a low-carbon transition and reducing greenhouse gas emissions through non-convertible debenture (NCD) financing. ABFL is a non-banking finance company providing lending and financing solutions in India, including project finance loans, corporate loans, SME loans and personal loans.
Project Concerns: Due to the project’s categorization as FI, decision-making lies with ABFL, raising concerns about transparency and oversight. The specific subprojects to be financed remain unclear. Relying on ABFL’s ESMS and E&S Policy for compliance with AIIB’s policies adds to the uncertainty regarding environmental and social impacts. Without disclosure of the subprojects, it is impossible to assess whether the financing truly supports a low-carbon transition or if it risks funding projects with unintended negative environmental or social consequences.
Further, the holding company Aditya Birla Capital has a total investment of 27,054 million USD in 32 companies active in the oil, gas and coal exploitation (listed on Urgewald’s GOGEL and GCEL lists, see here). This raises serious concerns about AIIB’s financing potentially reinforcing fossil fuel-linked activities. Providing financial support to a company with the holding company so deeply involved in fossil fuel extraction undermines the credibility of AIIB’s climate commitments. It also raises doubts about whether the project will genuinely accelerate India’s renewable energy and e-mobility goals or if funds could indirectly sustain carbon-intensive industries instead of advancing a meaningful energy transition.
Further information: AIIB Page
Last update: 27.03.2025