IDB Invest aligns its financial flows to the Paris Agreement
Through its financing, IDB Invest, part of the IDB Group, actively supports the low-carbon and climate-resilient development of the private sector in the Latin America and the Caribbean (LAC) region.
Aligning IDB Invest’s financing to the mitigation and adaptation goals of the Paris Agreement is part of this ongoing agenda, and thus, one of the actions contemplated in the IDB Group Climate Change Action Plan 2021-2025. From January 2023, we are assessing all our new transactions to determine if they can be considered not to undermine countries’ low-carbon and climate-resilient transition pathways in line with the goals of the Paris Agreement.
The “IDB Group Paris Alignment Implementation Approach" (PAIA, English version available online soon) outlines the methodology, principles, and technical guidance to carry out the assessments, which in turn informs our dialogues with clients and shapes the technical designs of transactions. The PAIA has been designed with embedded flexibility to acknowledge different national contexts, and will be updated based on evolving knowledge, feedback, and lessons learned by Multilateral Development Banks (MDBs) as we apply the Joint MDB Methodological Approach for Assessment of Paris Agreement Alignment.
The Joint MDB Methodological Approach for Assessment of Paris Agreement Alignment to be published soon.