Daily Digest for

The Asian Infrastructure Investment Bank (AIIB) has signed a letter of intent (LOI) with the Asian Development Bank (ADB) and the ASEAN Infrastructure Fund (AIF) to enhance collaboration on sustainable and resilient infrastructure development in ASEAN.

• The LOI focuses on financing high-impact infrastructure projects related to the ASEAN Power Grid (APG) and the ASEAN Catalytic Green Finance Facility (ACGF).
• The partnership involves pooling technical assistance, co-financing, and knowledge sharing in areas including transportation, digitalization, and energy.
• AIIB has a capital base of USD 100 billion and is AAA-rated; AIF has supported projects with $9 billion in capital expenditure across six ASEAN countries.
• Implementation of projects and initiatives is intended to drive connectivity, economic resilience, and sustainable growth in the region.
  The collaboration marks a confirmed advancement for sustainable infrastructure finance and development in ASEAN through multi-institutional cooperation.

Bosch Mobility China’s Suzhou factory applies Industry 4.0 technologies alongside lean principles to enhance efficiency and sustainability.

• Uses AI for predictive maintenance, increasing productivity by forecasting equipment wear like welding electrodes.
• Implements AI-driven automated optical inspection (AI@AOI) for failure pattern recognition in PCBs.
• Employs extensive digital models and simulations for faster production ramp-ups.
• Adopts a ‘cradle-to-grave’ sustainability approach, achieving CO2 neutrality in Scope 1 and 2 emissions since 2020 across Bosch Group locations.
• Incorporates renewable energy sources including solar panels and geothermal energy; purchases green electricity and offsets residual emissions using AI-predicted energy consumption data.
• Establishes a talent academy for digital and AI skills development to empower employees.

The National Bank of Serbia, through Governor Jorgovanka Tabaković, outlines Serbia’s strategic industrial policy and structural reform efforts.

• Industrial policies focus on modernization, integration into global value chains, a knowledge-based economy, digitalisation, and automation.
• Emphasis on energy transition to climate neutrality and decarbonisation, supported by Serbia’s integrated national energy and climate plan.
• Infrastructure projects under the “Leap into the Future – Serbia Expo 2027” program promote economic growth, technological parks, start-up centers, and business incubators.
• Significant investments highlighted: EUR 5.2 billion in FDI inflows in 2024; record FX reserves exceeding EUR 29 billion; record-high gold reserves with value more than seven times the level in 2012.
• Achieved investment-grade credit rating with J.P. Morgan including Serbian dinar bonds into their indices effective March 31, 2025.
  This outlines Serbia’s progress in leveraging industrial policy to foster economic stability, address climate goals, and sustain growth amidst global challenges.

The Voluntary Carbon Markets Integrity Initiative (VCMI) welcomes the UK Government’s consultation launch to strengthen voluntary carbon and nature markets.

• The consultation proposes adoption of VCMI’s voluntary standards as best practice to enhance market integrity and scale climate finance.
• VCMI’s Claims Code of Practice is recognized by the UK Government as critical for market integrity.
• The focus is on tackling corporate scope 3 greenhouse gas emissions, which often represent the largest and most challenging emission source in companies’ value chains.
• The UK Government is exploring high-integrity carbon credits as a tool to address unabated scope 3 emissions.
• VCMI will publish its Scope 3 Action Code of Practice to guide companies on this issue.
  This initiative aims to clarify best practices and scale finance for climate action especially in emerging markets and developing economies.

This speech by Christopher J Waller, Member of the Board of Governors of the Federal Reserve System, analyzes the impact of recent U.S. tariff increases on the economy and monetary policy.

• Focuses on two tariff scenarios: a large tariff scenario (around 25% average tariff), and a smaller tariff scenario (around 10% average tariff).
• Highlights that tariffs represent a historic increase in trade barriers, affecting inflation, economic growth, and labor markets.
• Discusses expected temporary inflation spikes due to tariffs, with possible increases up to 5% annualized inflation in the large tariff scenario.
• Notes the potential for economic slowdown and higher unemployment, possibly close to 5%, if large tariffs persist.
• Emphasizes the uncertainty around trade policies and advocates for monetary policy flexibility based on evolving economic data.

The speech concludes that the U.S. economy is resilient but currently faces significant uncertainty from trade policy adjustments, demanding careful monetary policy responses.