Article 2.1(c) of the Paris Agreement establishes a common global goal of aligning financial flows with a low-emission, climate-resilient development pathway. However, nearly a decade after the Agreement’s adoption, there remains limited political consensus on the scope of this commitment or its implementation.

Redirecting financial systems toward Paris-compatible investments is essential to phase out funding for activities that undermine climate adaptation and mitigation actions and instead support aligned investments for a sustainable future.

This project aims to develop a country-level assessment framework and methodology to evaluate progress on Article 2.1(c). It employs a bottom-up, multi-step approach, first reviewing existing assessment frameworks, analysing trade-offs in design and scope, and ultimately developing our own country-level framework and methodological guidance. The framework will be applied to Germany, with potential expansion to additional countries.

The project is jointly implemented NewClimate Institute, Germanwatch, and Frankfurt School of Finance and Management – UNEP Collaborating Centre for Climate and Sustainable Energy Finance. It runs from 2025 to 2027.