Alignment with the Paris Agreement has become the new frontier of climate finance. Financial institutions, whether seeking sustainable development impacts or with commercial goals, are increasingly committed to aligning with the Paris Agreement and to enabling strong interconnections between public and private sectors as well as between local governments and global stakeholders.
IDFC, in collaboration with the European Climate Foundation, commissioned an independent research from two major think tanks: I4CE and CPI on Paris alignment for the financial community and more specifically IDFC – a Club of 25 national and regional development banks.
The main objective of the study is to establish a reference framework to support financial institutions evaluate and design their alignment strategies. The study is composed of two parts, a conceptual framework for alignment realized by I4CE, and a number of actionable recommendations at country, strategic, and operational levels for IDFC members, developed by CPI.
Part 1 led by I4CE establishes a theoretical and conceptual basis for alignment, analyzing and describing the emerging interpretations of the definitions, principles, and approaches across the financial community, and building on the experience of the Climate Action in Financial Institutions Initiative.
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