Aligning Financial Intermediary Investments with the Paris Agreement

This working paper by Germanwatch, NewClimate Institute, and WRI outlines a framework for development finance institutions (DFIs) to align indirect investments—those channeled through financial intermediaries—with the Paris Agreement's goals for low-emission and climate-resilient development.

• Development finance institutions (DFIs) must ensure that activities conducted through financial intermediaries are aligned with the Paris Agreement to meet overall temperature and resiliency objectives, as current alignment efforts have focused primarily on direct project financing while substantial funds are channeled indirectly.
• The authors propose a phased approach to align indirect investments, which consists of subproject-level criteria for mitigation and adaptation, as well as institutional-level criteria focusing on climate governance and transparency within the intermediaries.
• DFIs are responsible for the alignment of intermediated investments and can achieve this through institutional changes and the use of a risk-tailored approach when selecting investment instruments.

APA

NewClimate Institute (2021). Aligning Financial Intermediary Investments with the Paris Agreement. http://www.newclimate.org/resources/publications/aligning-financial-intermediary-investments-with-the-paris-agreement

Chicago

NewClimate Institute. Aligning Financial Intermediary Investments with the Paris Agreement. 2021. http://www.newclimate.org/resources/publications/aligning-financial-intermediary-investments-with-the-paris-agreement.

Wikipedia

{{cite report |author=NewClimate Institute |title=Aligning Financial Intermediary Investments with the Paris Agreement |date=23 June 2021 |url=http://www.newclimate.org/resources/publications/aligning-financial-intermediary-investments-with-the-paris-agreement |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{newclimateinstitute2021aligning, author = {{NewClimate Institute}}, title = {{Aligning Financial Intermediary Investments with the Paris Agreement}}, institution = {NewClimate Institute}, year = {2021}, month = jun, url = {http://www.newclimate.org/resources/publications/aligning-financial-intermediary-investments-with-the-paris-agreement}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }