Beijing, June 19, 2023

MDBs Agree How to Align New Financial Flows with the Paris Agreement Goals

Joint methodological principles published today

  • MDBs outline the principles of how they will ensure alignment of their new operations with the mitigation and adaptation goals of the Paris Agreement
  • Culmination of joint work over the last few years

 

Multilateral development banks (MDBs), including the Asian Infrastructure Investment Bank (AIIB), released today the joint principles of how they will ensure alignment of their new financing with the goals of the Paris Agreement—the culmination of work over the last five years to ensure a consistent and harmonised approach.

The principles represent the outcome of work amongst MDBs since the Paris Agreement was signed. MDBs committed to align their new 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 MDBs’ new 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 develop appropriate short-term and longer-term development pathways in line with the goals of the Paris Agreement and aligning financial flows to said goals.

The Paris Agreement is a legally binding international treaty on climate change. It was adopted by 196 Parties at COP21 in Paris, on Dec. 12, 2015, and entered into force on Nov. 4, 2016.

To ensure a consistent approach to the implementation of the Paris Alignment commitment, in 2019 the MDBs developed a framework for aligning activities with the Paris goals, with six building blocks: (i) alignment with mitigation goals, (ii) adaptation and climate-resilient operations, (iii) accelerated contribution to the transition through climate finance, (iv) engagement and policy development support, (v) reporting, and (vi) alignment of internal activities.

The joint framework has informed AIIB’s own detailed implementation of its Paris alignment commitment.

MDBs will continue to work together on this important topic after today’s publication of said Joint MDB Paris Alignment Methodological Principles, recognising 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.

Joint MDB Methodological Principles for Assessment of Paris Agreement Alignment of New Operations – Direct Investment Lending Operations

Joint MDB Methodological Principles for Assessment of Paris Agreement Alignment of New Operations – Intermediated Financing

Joint MDB Methodological Principles for Assessment of Paris Agreement Alignment of New Operations – General Corporate Purpose Financing

Joint MDB Methodological Principles for Assessment of Paris Agreement Alignment of New Operations – Policy-Based Lending Operations

List of Activities Considered Universally Aligned with the Paris Agreement’s Mitigation Goals or Not Aligned with the Mitigation Goals

 

About AIIB

The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank whose mission is financing the Infrastructure for Tomorrow—infrastructure with sustainability at its core. We began operations in Beijing in January 2016 and have since grown to 106 approved members worldwide. We are capitalized at USD100 billion and Triple-A-rated by the major international credit rating agencies. Collaborating with partners, AIIB meets clients’ needs by unlocking new capital and investing in infrastructure that is green, technology-enabled and promotes regional connectivity.

Logos for Download

AIIB logo is available in JPEG and PDF format.

DOWNLOAD

Media Contact

Lingxiao He

Press Officer

+86 10 8358 0683

SEND AN EMAIL
More News Articles

Rio de De Janeiro, November 20, 2024

Multilateral Development Banks Welcome G20 Roadmap for MDB Reform

The Heads of 10 multilateral development banks (MDBs) welcomed today the endorsement by G20 Leaders of the G20 Roadmap towards Better, Bigger, and More Effective MDBs. The Roadmap outlines a comprehensive vision for continuing to reform MDBs to better address regional and global challenges, create more jobs and opportunities, and support countries to accelerate progress toward the Sustainable Development Goals (SDGs) and the goals of the Paris Agreement.

READ MORE

Baku , November 18, 2024

AIIB Signs Landmark Private Sector Solar PV Project in Azerbaijan at COP29 in Baku

At COP29, the Asian Infrastructure Investment Bank (AIIB) signed a financing agreement of USD160 million for its first private-sector renewable energy project in Azerbaijan, marking a major step in expanding green infrastructure across the Caucasus region.

READ MORE

Baku , November 14, 2024

GCA, AIIB Partner to Strengthen Climate Resilience in Infrastructure Projects 

The Global Center on Adaptation (GCA) and the Asian Infrastructure Investment Bank (AIIB) have signed a Letter of Intent (LOI) to establish a strategic partnership aimed at mainstreaming climate adaptation and resilience within infrastructure projects across Asia and Africa.

READ MORE

Baku , November 13, 2024

AIIB, ADB Renew Partnership to Tackle Regional Development Challenges

On the margins of COP29 in Baku, Azerbaijan, the Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank (ADB) renewed their Memorandum of Understanding (MOU) to deepen cooperation in addressing Asia’s most pressing development challenges.

READ MORE