Paris Alignment of Gas

The report argues that current financial investments in the gas value chain underestimate climate risks and are incompatible with the Paris Agreement's 1.5°C target. It highlights that while many development finance institutions (DFIs) and private asset managers have moved away from coal, they continue to fund new gas projects despite the availability of cheaper renewable alternatives and the risk of high-emission lock-in. The document asserts that gas should not be considered a bridge or transition fuel and calls for clear strategies to phase out fossil fuel support.

• Investments in the gas value chain are increasingly incompatible with climate targets and pose significant risks, including high-emission lock-in, transition risks, and physical climate risks, particularly as renewable energy and electrification become more cost-effective.
• Despite pledges to align with the Paris Agreement, most development finance institutions (DFIs) lack effective strategies to phase out gas support and continue to provide significant funding for new gas projects and infrastructure.
• The rationale for using gas as a bridge or transition fuel is undermined by lifecycle assessments and the necessity for emissions to decrease by 7.6% annually between 2020 and 2030 to meet the 1.5°C goal.

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} }