MANILA, PHILIPPINES : The Asian Development Bank (ADB) and other multilateral development banks (MDBs) have released the principles of how they will ensure alignment of financing with the goals of the Paris Agreement—the culmination of work over the last 5 years to ensure a consistent and harmonized approach.
The principles (see Related documents below) represent the outcome of work among MDBs since the Paris Agreement was signed. MDBs committed to align their financial flows with the objectives of the Paris Agreement in 2017.
These technical papers are a result of significant collective effort and provide clear guidance on how new MDB financing operations need to be structured to be aligned with the Paris Agreement’s climate goals. The MDBs’ joint Paris alignment approach aims to accelerate and support the successful and urgent transition to a low-carbon and climate-resilient future by supporting clients to develop appropriate short- and longer-term development pathways in line with the goals of the Paris Agreement and aligning financial flows to them.
“At ADB, we embrace our role as Asia and the Pacific’s climate bank. Aligning with the Paris Agreement isn’t just a commitment, but a testament to our pledge to help lead Asia towards a sustainable and resilient future,” said ADB Senior Climate Specialist Christian Ellermann.
The Paris Agreement is a legally binding international treaty on climate change. It was adopted by 196 Parties at COP21 in Paris, on 12 December 2015, and entered into force on 4 November 2016.
To ensure a consistent approach to the implementation of the Paris Alignment commitment, the MDBs developed a framework in 2019 to align activities with the Paris goals, with 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 guide ADB’s own detailed implementation of its Paris alignment commitment. ADB will achieve full alignment of its new sovereign operations by 1 July 2023. Alignment of its new nonsovereign operations will reach at least 85% by 1 July 2023 and 100% by 1 July 2025.
ADB is strengthening the capacities of its developing member countries to achieve their nationally determined contributions (NDCs) and contribute to the Paris Agreement goals. Through ambitious projects and policy development assistance, it is supporting countries in their just transitions to move toward net-zero emission economies. ADB is also increasing its work to help Asia and the Pacific scale up investments in climate adaptation—especially at the community level—targeting the nexus between climate change, poverty, and gender.
MDBs will continue to work together on climate action after the principles’ publication, recognizing the need to continue to refine approaches through implementation.
MDBs working together for the release of the joint methodological principles are the African Development Bank, 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.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
Source: adb
