Aligning Financial Intermediary Investments with the Paris Agreement

The document argues that development finance institutions (DFIs) cannot achieve full alignment with the Paris Agreement if they only focus on direct project financing, as substantial portions of their finance are channeled through financial intermediaries. It proposes a phased alignment strategy combining subproject-level criteria for mitigation and adaptation with institutional-level requirements for climate governance and transparency.

• Development finance institutions (DFIs) must align their indirect investments through financial intermediaries to be fully consistent with global climate goals, as current alignment efforts have focused primarily on direct project financing.
• The authors propose a phased alignment framework for indirect investments that integrates subproject-level criteria for adaptation and mitigation with institutional-level criteria regarding transparency and climate governance.
• DFIs bear the ultimate responsibility for the alignment of intermediated investments and can achieve this through internal institutional changes and the use of risk-tailored 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} }