The Paris Agreement aims 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 provides 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.
Since 2018, the consortium has analysed and developed Paris compatible investment pathways and criteria for financial intermediaries, assessed to what extent multilateral development banks support the implementation and enhancement of NDCs, and researched climate compatible investments in energy, transportation, and land-use sectors.
Besides providing new research, the consortium supports the transparency and operationalisation of Paris alignment at the multilateral development banks through stakeholder engagement. The consortium’s work expands to analyse the role of MDBs in the transition of countries towards 1.5°C compatible pathways through, among other topics, researching the role of MDBs in supporting a green hydrogen economy, just transition energy partnerships (JETPs), and nature investments. Further, the team engages on dynamic questions about the future of international financial architecture and private sector mobilisation.
The project receives financial support from Federal Ministry for Economy Cooperation and Development of Germany (BMZ).