Net-Zero Investment Framework: the Paris Aligned Investment Initiative forgets about fossil fuels

Reclaim Finance argues that the PAII Net-Zero Investment Framework is inadequate for achieving a 1.5°C limit because it lacks a mandatory fossil fuel phase-out trajectory and relies on weak engagement strategies. While the framework correctly prioritizes low/no overshoot 1.5°C pathways, it is criticized for allowing targets based on carbon intensity rather than absolute emissions and for failing to address anti-climate lobbying.

• The PAII framework's approach to fossil fuel production is considered weak, as it only recommends engagement to prevent new thermal coal generation and tar sand exploitation, and to phase out unabated capacity in line with net-zero pathways.
• The framework is criticized for creating loopholes that allow continued fossil fuel support, specifically by not defining new coal or unconventional fossil fuel projects as 'red lines' and failing to require specific phase-out dates for fossil fuels.
• The framework's target-setting and implementation are deemed inadequate because they allow for targets based on carbon intensity instead of absolute emissions and prioritize engagement without a clear escalation strategy.
• The PAII framework fails to require members to take action against companies involved in anti-climate lobbying to weaken legislation.
• The framework's requirement for investors to use pathways with a "high probability of achieving the 1.5°C goal" is viewed as a positive ambition compatible with the Paris Agreement, though it requires further definition regarding negative emissions and fossil phase-out.

APA

admin (2021). Net-Zero Investment Framework: the Paris Aligned Investment Initiative forgets about fossil fuels. Reclaim Finance. https://reclaimfinance.org/site/en/2021/03/25/net-zero-investment-framework-the-paris-aligned-investment-initiative-forgets-about-fossil-fuels/

Chicago

admin. Net-Zero Investment Framework: the Paris Aligned Investment Initiative forgets about fossil fuels. Reclaim Finance, 2021. https://reclaimfinance.org/site/en/2021/03/25/net-zero-investment-framework-the-paris-aligned-investment-initiative-forgets-about-fossil-fuels/.

Wikipedia

{{cite press release |last1=admin |title=Net-Zero Investment Framework: the Paris Aligned Investment Initiative forgets about fossil fuels |publisher=Reclaim Finance |date=25 March 2021 |url=https://reclaimfinance.org/site/en/2021/03/25/net-zero-investment-framework-the-paris-aligned-investment-initiative-forgets-about-fossil-fuels/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{admin2021netzero, author = {admin}, title = {{Net-Zero Investment Framework: the Paris Aligned Investment Initiative forgets about fossil fuels}}, publisher = {Reclaim Finance}, year = {2021}, month = mar, url = {https://reclaimfinance.org/site/en/2021/03/25/net-zero-investment-framework-the-paris-aligned-investment-initiative-forgets-about-fossil-fuels/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }