NewClimate Institute, together with  Germanwatch, WRI and E3G, provided inputs to multilateral development banks to support the implementation of the Paris Agreement.
The Paris Agreement aimed to hold the increase in the global average temperature to well below 2°C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5°C. This research offered recommendations on how the banks could strengthen existing tools to align their portfolios and activities with the globally agreed mitigation goal and support just transitions towards Paris alignment.
From 2018 onwards, the consortium analysed and developed Paris-compatible investment pathways and criteria for financial intermediaries, assessed the extent to which multilateral development banks supported the implementation and enhancement of NDCs, and researched climate-compatible investments in energy, transportation and land-use sectors.
In addition to providing new research, the consortium supported the transparency and operationalisation of Paris alignment at multilateral development banks (MDBs) through stakeholder engagement. The consortium’s work expanded to analyse the role of MDBs in the transition of countries towards 1.5°C-compatible pathways, including research on the role of MDBs in supporting a green hydrogen economy, just energy transition partnerships (JETPs), and nature investments. Further, the team engaged on dynamic questions about the future of international financial architecture and private sector mobilisation.
The project received financial support from the Federal Ministry for Economic Cooperation and Development of Germany (BMZ).
