The African Development Bank (AfDB) and other multilateral development institutions have released a set of principles to ensure climate financing aligns with the goals of the Paris Agreement.
The MDBs are collaborating to help accelerate the successful transition to a low-carbon and climate-resilient future by supporting appropriate long-term development pathways in line with the goals of the Paris Agreement.
In addition to the African Development Bank, the MDBs involved are the 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 Paris Alignment methodologies result from efforts at harmonization and provide guidance on how projects must be structured to comply with the Paris Climate Accords.
Following the signing of the Paris Agreement by its parties, MDBs committed to aligning their financial flows with the objectives of the Paris Agreement in 2017.
The methodologies take into account the concept of common but differentiated responsibilities and respective capabilities as set out in the Paris Agreement.
For African countries, these will be determined through their Nationally Determined Contributions (NDCs).
Further, as set out in the Paris Agreement, developed countries are obligated to provide financial resources to support developing country efforts toward mitigation and adaptation.
The African Development Bank Group, in alignment with its commitment to Paris Agreement objectives, is committed to enhancing resource mobilization efforts to accomplish these goals.
Anthony Nyong, Bank Group director for Climate Change and Green Growth, said: “We are very pleased to see the publication of these high-level principles as they deliver on a key milestone for the MDBs’ work to align all financial flows with the goals of the Paris Agreement. As MDBs move to apply these principles across the board, we remain committed to strengthening the capacity of African countries to deliver on their NDCs.”
To ensure a consistent approach to implementing Paris Alignment commitments, the MDBs in 2019 developed an approach for aligning activities with the Paris goals, based on 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 principles have informed the African Development Bank’s own detailed implementation of its Paris Alignment commitment to ensure that, by the end of 2023, all investments are screened for Paris Alignment.
