Aligning Investments with the Paris Agreement Temperature Goal: Challenges and opportunities for multilateral development banks

Germanwatch e.V and New Climate Institute  
Policy Initiative: Innovation and Economic Diversification
18. October 2018

Multilateral development banks (MDBs) have committed to aligning their operations with the Paris Agreement. Doing so is not only an obligation flowing from Article 2.1c of the Paris Agreement, but also carries many advantages for the banks and their client countries: It will enable the fulfilment of the Banks’ broader development mandate and can support their client countries in meeting their national goals and in realizing development gains from leapfrogging to modern, zerocarbon technologies. It will also avoid a lock-in of high-carbon infrastructure and reduce exposure to climate-related financial risks due to stranded assets.

Aligning Investments with the Paris Agreement Temperature Goal: Challenges and opportunities for multilateral development banks proposes a definition of alignment with the Paris temperature goal, and reviews decision-making tools for assessing alignment and shifting portfolios used by seven major MDBs. It also proposes additional tools to assess Paris-alignment at project level for two particularly emissions-intensive sectors: energy supply and transport infrastructure.

The Green Growth Knowledge Platform | Aligning Investments with the Paris Agreement Temperature Goal: Challenges and opportunities for multilateral development banks

EPF | Economic Policy Forum

EPF | Economic Policy Forum