The Asian Infrastructure Investment Bank (AIIB) has committed $100 million to TPG’s climate initiative for emerging markets.
The development bank made a $50 million commitment to the TPG Rise Climate Global South Initiative Fund (GSI), and up to $50 million in co-investments, it said in an announcement. GSI is a parallel vehicle to TPG Rise Climate II fund, designed to attract long-term private capital for high-impact climate opportunities in emerging and developing economies.
The sidecar vehicle will invest mainly in India, Southeast Asia, the Middle East and Africa, with a 70% allocation to Asia and 30% to non-Asia markets.
It targets investments in sectors including energy transition, green mobility, sustainable fuels, sustainable materials and products, carbon solutions, and climate adaptation and resilience.
GSI has a fund size target of $1 billion, according to AIIB. As of Q2 2026, it has committed $808 million, per TPG’s earnings report.
“Through this partnership with TPG, AIIB is supporting the expansion of innovative climate solutions in emerging markets, while strengthening climate finance ecosystems across our members, in line with our corporate target to direct 50% of annual financing to private-sector-oriented operations by 2030,” said Kim-See Lim, AIIB Chief Investment Officer, Public Sector (Region 1) & Financial Institutions and Funds (Global) Clients.
Bloomberg recently reported that TPG Rise Climate II has raised $10 billion. As of Q2 2026, the vehicle has committed $7.4 billion, according to TPG’s earnings report.
Its predecessor fund closed at $7.3 billion in 2022 and has realised more than $2.6 billion, bringing a 15% net IRR and 1.3x net multiple.
TPG said in its last earnings call that there were a number of exciting opportunities in the climate business in terms of monetisation over the next three to six months.
Large climate-focused funds are being raised. Copenhagen Infrastructure Partners has also secured a 1.2 billion euro ($1.35 billion) single commitment from Norges Bank Investment Management for its latest flagship fund, which invests in renewable projects in North America, Western Europe and the Asia Pacific region.
