MDBs agree how to align new financial flows with the Paris Agreement goals
19 June 2023
Multilateral development banks (MDBs), including the European Investment Bank, have released joint methodological principles of how they will ensure alignment of new financing with the goals of the Paris Agreement.
The joint methodological principles are the result of significant collective effort and provide a harmonised approach and clear guidance on how new financing operations are assessed for alignment with the Paris Agreement’s climate goals. The MDBs’ joint approach aims to accelerate and support the urgent transition to a low-carbon and climate-resilient future by supporting clients in preparing investments that are in line with the objectives of the Paris Agreement.
To ensure a consistent approach to the implementation of their commitment to align with the Paris Agreement, in 2018 MDBs developed a framework with six building blocks: alignment with mitigation goals, adaptation and climate-resilient operations, accelerated contribution to the transition through climate finance, engagement and policy development support, reporting, and alignment of internal activities. The joint methodological principles published today present the MDB Paris Alignment methodology for building blocks one (mitigation) and two (adaptation and climate resilience).
The 2018 joint MDB framework informed the EIB Group’s own Paris alignment commitment and the operational framework established in its 2020-2025 Climate Bank Roadmap. Applying this framework, all new EIB Group operations have been aligned with the goals and principles of the Paris Agreement since the start of 2021.
MDBs working together on the development of the joint methodological principles are the African Development Bank, Asian Development Bank, Asian Infrastructure Investment Bank, Council of Europe Development Bank, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank Group, Islamic Development Bank, New Development Bank, and the World Bank Group.
The European Investment Bank (EIB) will actively contribute to the objectives of theGlobal Renewables and Energy Efficiency Pledge, announced today at the World Climate Action Summit, the gathering of world leaders at COP28 in Dubai. The pledge, which was joined by more than 100 countries, alongside the COP28 Presidency and the European Union, aims to accelerate the pace and deployment of renewables and energy efficiency to limit global warming. It defines new targets for the global installed capacity of renewable energy sources, set to triple by 2030. In addition, it commits to doubling the global rate of energy efficiency improvements from 2% to 4% every year until 2030.
The coalition of development finance institutions and multilateral organizations making up the Global Green Bond Initiative (GGBI ) today launched a strategic partnership with the African Development Bank to cooperate on technical assistance to promote green bond markets in Africa.