Green lending rose to €1.46 billion at AIB last year - an increase of around a fifth on the previous year's level of €1.2 billion.
Among other products, banks offer so-called green mortgages - which have lower interest rates - on homes that reach an energy rating of B or higher.
AIB said that green lending accounted for 16% of new lending at the bank last year.
Customers drew down €380m in AIB green mortgages since the product was launched in autumn 2019, including €335m drawn down in 2020.
It noted that new products and services are driving steady growth in its green lending book.
AIB is aiming to see green lending account for 70% of overall new lending by 2030.
It said this will see the bank play a significant role in helping the Government and European Union meet their carbon reduction targets.
AIB has also continued to support customers in their efforts to become more sustainable in the personal and corporate sectors.
It has teamed up with Nissan to offer consumers the opportunity to buy Electric Vehicles (EV) with 0% finance in a move designed to increase the number of EV drivers in Ireland.
The bank is also offering Sustainability Linked Loans (SLLs) to some corporate, institutional and business banking customers.
AIB's chief executive Colin Hunt said that managing climate change is the greatest challenge facing this generation.
"At AIB we are committed to supporting the transition to a low-carbon economy, reducing our own carbon footprint, and helping our customers to do likewise," Colin Hunt said.
"So far we have made significant progress in building a climate resilient business and expanding our range of products to address environmental issues. We want to ensure a greener tomorrow by backing those who are building it today," the CEO added.
