Aligning with the Paris Agreement

The report, produced by CPI and I4CE, outlines a theoretical framework for Paris alignment based on scope, scale, and time horizon, and provides a roadmap for development finance institutions (DFIs) to implement these principles. It emphasizes the unique role of IDFC members in bridging public and private sectors to support low-GHG, climate-resilient development pathways through policy advice, risk mitigation, and updated investment criteria.

• The proposed framework for Paris alignment consists of three dimensions: a comprehensive scope of action across all business areas, a long-term time horizon to avoid lock-in or mal-adaptation, and an ambitious scale of contribution. The scale of contribution is categorized into three levels: activities that 'do no harm', those that support 'Paris-Consistent Climate Co-Benefits', and those that 'Foster Transformative Outcomes'.
• Financial institutions must move beyond existing climate mainstreaming and risk management approaches, as these alone may not be sufficient to rapidly scale down harmful activities or reorient capital toward transformative, long-term low-GHG and climate-resilient development.
• The International Development Finance Club (IDFC) comprises 24 national and regional development finance institutions managing over USD 4 trillion in assets. These institutions are uniquely positioned to influence project pipelines and policy design due to their close relationships with national and sub-national governments.
• To implement alignment, IDFC members should leverage their relationships with governments through four specific levers: providing policy advice for low-GHG pathways, facilitating multi-stakeholder coordination across ministries, building in-country capacity for climate risk mitigation, and maintaining pro-active relationships with government decision-makers.
• Alignment at the institutional and operational levels requires executive leadership to adopt institution-wide objectives with clear metrics, update risk management frameworks to utilize unused risk capacity for transformative investments, and integrate alignment assessment processes into all investment decisions, including procurement and technical assistance.
• No IDFC member is currently fully aligned, and the path to alignment will vary based on internal capacity and political environments. Some may start with top-down mandate reviews, while others in challenging political climates may start from the bottom by demonstrating the compatibility of climate and development goals via innovation units.

APA

Cochran, I., Pauthier, A., Clark, A., Choi, J., Tonkonogy, B., Micale, V., & Wetherbee, C. (2019). Aligning with the Paris Agreement. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2019/09/Implementing-alignment-recommendations-for-the-International-Development-Finance-Club-_-Executive-Summary.pdf

Chicago

Cochran, Ian, Alice Pauthier, Alex Clark, June Choi, Bella Tonkonogy, Valerio Micale, and Cooper Wetherbee. Aligning with the Paris Agreement. Climate Policy Initiative, 2019. https://www.climatepolicyinitiative.org/wp-content/uploads/2019/09/Implementing-alignment-recommendations-for-the-International-Development-Finance-Club-_-Executive-Summary.pdf.

Wikipedia

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BibTeX

@techreport{cochran2019aligning, author = {Cochran, Ian and Pauthier, Alice and Clark, Alex and Choi, June and Tonkonogy, Bella and Micale, Valerio and Wetherbee, Cooper}, title = {{Aligning with the Paris Agreement}}, institution = {Climate Policy Initiative}, year = {2019}, month = sep, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2019/09/Implementing-alignment-recommendations-for-the-International-Development-Finance-Club-_-Executive-Summary.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }