HSBC has hired Danny Alexander to lead its new infrastructure unit to tap opportunities associated with the global shift to a low carbon economy.

The former UK minister will join HSBC Infrastructure Finance (HIF) as chief executive in November. The unit will take part in infrastructure and project finance deals, according to a post on Alexander’s LinkedIn page on Tuesday.

“HIF will pursue a meaningful share of infrastructure financing and advisory opportunities associated with the transition to a low carbon economy in strategic markets,” he wrote in the post.

“The new role is based in the UK, but with HSBC’s deep roots and great strength in Asia, I expect to continue to spend a lot of time in this region … It will be a huge challenge – I am looking forward to getting started.”

The move comes as HSBC joins a growing list of banks tightening their lending to high-polluting sectors to get in line with the global goal of net-zero emissions by 2050.

The new unit will incorporate parts of the bank’s global banking real asset finance team, which includes infrastructure finance, export finance and portfolio management, according to a Reuters report, which cited an HSBC internal staff memo.

HIF will also “work closely with the bank’s CMB infrastructure finance team, and oversee its Pentagreen Capital joint venture, a sustainable infrastructure debt unit launched with Singapore investment firm Temasek”, the report added.

Alexander, the former chief secretary to the treasury until 2015, will step down from his position as vice-president for policy and strategy at Asian Infrastructure Investment Bank (AIIB) in October.

Alexander joined the Beijing-based multilateral development bank in February 2016, a month after it officially began operations, according to a statement from AIIB.

He oversaw environmental and social policies and drove AIIB’s strategic direction, sectoral and country priorities, investment strategy and operating budget, the statement added.

AIIB president Jin Liqun said in the statement that Alexander has been instrumental in expanding their membership, shaping strategic direction, and strengthening the policy framework.

Alexander expressed his concern about the challenges of global climate transition and his expectations for the new role in his LinkedIn post.

“To my mind, the most important development change facing the world now is the climate transition,” he wrote.

“AIIB and other multilateral development lenders will play a crucial role, delivering the agenda set out in various COP meetings and the G20. But the scale and speed will only be achieved by all kinds of finance working together, and the private sector must be at the forefront.”