How should the major public and private financial institutions mainstream climate change into their practices? To answer this crucial question for the success of the Paris Agreement and SDGs, on 11 December, the Mainstreaming! event organized by the International Development Finance Club (IDFC), Climate Action in Financial Institutions and AFD is gathering several hundred funders and investors from the international community in Paris.
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During COP21 in 2015, several member banks of IDFC, which is chaired by AFD, launched the Climate Action in Financial Institutions initiative and its “5 principles for mainstreaming climate change in financial institutions”, with the aim of getting actors in international finance to take greater account of climate change. Two years on, the initiative has over 30 public and private member institutions from all over the world.
Redirect investments
These financial institutions have a major role to play in directing investments towards sustainable, low-carbon and resilient development pathways. The five principles of the initiative aim to guide these actors in their financing decisions to ensure that climate issues are a central component of their activities. The members of Climate Action in Financial Institutions exchange their experiences and share good practices on climate change. Their aim is to make a meaningful contribution to the achievement of the objective of the Paris Agreement to make financial flows compatible with “green” development.
Climate and finance, an alliance already sealed
On 11 December, Mainstreaming! will be demonstrating the reality of the climate commitments of the finance community, while encouraging new actors to join the movement. The mobilization in Paris will also provide an opportunity to take stock of these first 24 months of action: How have international public and private financial institutions mainstreamed the climate into their practices? What has actually been achieved in terms of strategies, climate risk management, the development of specific tools, transparency and responsibility?
The ambitions of “green” finance in the coming years will also be on the agenda, along with the aim of making the principles of Climate Action in Financial Institutions an essential tool for international investments. The event led by AFD and its partners will be held on the eve of international climate summit “One Planet Summit” organized by the French President, just two years after the Paris COP21.
