Public Financial Institutions’ Climate Commitments: 2023 Update

This report by the Climate Policy Initiative (CPI) updates the tracking of climate commitments for the 70 largest public financial institutions (PFIs) for 2023 and analyzes the climate strategies of 49 smaller PFIs in emerging markets and developing economies (EMDEs). The findings indicate minimal progress among large PFIs, while smaller institutions often demonstrate higher ambition when supported by their national governments.

• Tracking of the 70 largest PFIs in 2023 showed minimal progress in adopting climate commitments, with only two institutions taking new action. The share of institutions with a Paris alignment or net zero commitment rose slightly to 33% from 28% in 2022, and those with exclusion and divestment policies increased to 34% from 31%.
• The two large national development banks (NDBs) that established new commitments in 2023 were the Brazilian National Development Bank (BNDES) and the French Group Caisse des Dépôts (CDC Group). Both institutions consolidated previous goals into comprehensive approaches for Paris Agreement alignment.
• Analysis of 49 smaller PFIs in emerging markets and developing economies (EMDEs) suggests that institutional size and physical climate vulnerability are not primary drivers of climate engagement. Instead, the strongest correlation was found between climate ambition and governments that self-identify as vulnerable through membership in the Vulnerable Twenty (V20) Group.
• PFIs with 'General Development' (FLEX) mandates tend to exhibit higher climate ambition compared to those with narrow or sector-specific mandates. This suggests that a wide scope may facilitate the mainstreaming of climate considerations more easily than restrictive mandates.
• Case studies of smaller PFIs demonstrate diverse pathways to climate action: the Caribbean Development Bank achieved full Paris Agreement alignment by December 2022; the Arab Fund for Economic and Social Development launched a Green Projects Program in 2020; and PT Sarana Multi Infrastruktur integrated climate into its infrastructure mandate via the SDG Indonesia One platform.

APA

Chin, N., Schell-Smith, K., & Pinko, N. (2024). Public Financial Institutions’ Climate Commitments: 2023 Update. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/02/Public-Financial-Institutions-Climate-Commitments-2023-Update.pdf

Chicago

Chin, Neil, Ken Schell-Smith, and Nicole Pinko. Public Financial Institutions’ Climate Commitments: 2023 Update. Climate Policy Initiative, 2024. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/02/Public-Financial-Institutions-Climate-Commitments-2023-Update.pdf.

Wikipedia

{{cite report |last1=Chin |first1=Neil |last2=Schell-Smith |first2=Ken |last3=Pinko |first3=Nicole |title=Public Financial Institutions’ Climate Commitments: 2023 Update |publisher=Climate Policy Initiative |date=February 2024 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2024/02/Public-Financial-Institutions-Climate-Commitments-2023-Update.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{chin2024public, author = {Chin, Neil and Schell-Smith, Ken and Pinko, Nicole}, title = {{Public Financial Institutions’ Climate Commitments: 2023 Update}}, institution = {Climate Policy Initiative}, year = {2024}, month = feb, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2024/02/Public-Financial-Institutions-Climate-Commitments-2023-Update.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }