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
BEIJING, June 19, 2023 /PRNewswire/ -- 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.
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.