Through its financing, the IDB Group supports the Latin America and the Caribbean (LAC) region in the promotion of low-carbon and climate-resilient development.
Through policy support and technical assistance, it seeks to progressively raise climate ambition in the region. Aligning IDB Group financing to the goals of the Paris Agreement is part of this agenda, and thus, one of the pillars in our Climate Change Action Plan 2021-2025.
As of January 1st 2023, we assess all our new operations seeking to ensure they do not obstruct the transition to low greenhouse gas and climate-resilient economies in line with the goals of the Paris Agreement.
The “IDB Group Paris Alignment Implementation Approach” (PAIA) contains the methodology, set of principles, and technical guidance on energy, water and sanitation, transportation, agri-food systems, and operations with financial institutions, to carry out this assessment. This helps shape the technical design of operations and informs our dialogue with clients.
The PAIA has been designed with embedded flexibility to acknowledge different national contexts, and is to be updated on the basis of evolving knowledge, feedback, and lessons learned by all Multilateral Development Banks (MDBs). This is part of the process that IDB Group shares with other development finance institutions, as we begin to apply the principles of the “Joint MDB Methodological Principles for Assessment of Paris Agreement Alignment of New operations” which are the basis for the PAIA and were developed by IDB Group in collaboration with other MDBs.
The principles represent the outcome of work amongst the MDBs since the Paris Agreement was signed. MDBs committed to align their financial flows with the objectives of the Paris Agreement in 2017.
Download the Joint MDB Methodological Principles for Assessment of Paris Agreement Alignment of New operations for:
You can also download de MDB list of activities considered universally aligned with the Paris Agreement's mitigation goal and universally not aligned with the Paris Agreement's mitigation goal:
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