Paris Alignment of Gas

The NewClimate Institute report argues that current financial investments in the gas value chain underestimate climate risks and are incompatible with the 1.5°C temperature goal of the Paris Agreement. It calls for tighter lending restrictions on gas, asserting that gas should not be viewed as a bridge or transition fuel due to lifecycle assessments and the falling cost of renewable alternatives.

• To meet the Paris Agreement objectives, the energy system requires rapid decarbonisation, specifically requiring annual emission reductions of 7.6% during the "critical decade" from 2020 to 2030. Current planned and operational energy infrastructure emissions are likely to exceed the carbon budget necessary for a 50-66% probability of achieving the 1.5°C target.
• Despite pledges by development finance institutions (DFIs) and private sector asset managers to align with the Paris Agreement and move away from coal, significant financing continues for new gas projects. Most DFIs lack effective strategies to phase out gas support, although some have begun adopting restrictions.
• Gas is not a viable bridge or transition fuel because lifecycle assessments undermine its status as a climate-friendly alternative. Due to technological progress and lower costs for energy storage, electrification, and renewables, gas investments create high-emission lock-in, transition, and physical climate risks across the entire value chain, from upstream extraction to end uses.

APA

NewClimate Institute (2021). Paris Alignment of Gas. http://www.newclimate.org/resources/publications/paris-alignment-of-gas

Chicago

NewClimate Institute. Paris Alignment of Gas. 2021. http://www.newclimate.org/resources/publications/paris-alignment-of-gas.

Wikipedia

{{cite report |author=NewClimate Institute |title=Paris Alignment of Gas |date=20 October 2021 |url=http://www.newclimate.org/resources/publications/paris-alignment-of-gas |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{newclimateinstitute2021paris, author = {{NewClimate Institute}}, title = {{Paris Alignment of Gas}}, institution = {NewClimate Institute}, year = {2021}, month = oct, url = {http://www.newclimate.org/resources/publications/paris-alignment-of-gas}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }