PRINCIPLES FOR PARIS-ALIGNED FINANCIAL INSTITUTIONS

The document outlines principles for financial institutions (FIs) to align with the 1.5°C goal of the Paris Agreement, specifically referencing the IPCC SR1.5 pathway 1. It demands the immediate cessation of financing for new fossil fuel exploration and infrastructure, a rapid phase-out of coal financing by 2030 in OECD countries and 2040 globally, and the prohibition of financing for projects causing deforestation or ecosystem degradation. FIs are urged to disclose their full carbon footprint, set science-based targets to reach zero impact by 2050, and avoid reliance on offsets or untested negative emissions technologies.

• To limit global warming to 1.5°C, global carbon dioxide emissions must be reduced by more than half from 2010 levels by 2030 and reach effectively zero by 2050, following the IPCC SR1.5 "pathway 1".
• Any expansion of fossil fuel exploration, extraction, or supporting infrastructure is considered incompatible with the Paris Agreement because existing production already threatens the 1.5°C and 2°C limits.
• Financial institutions must immediately stop financing projects involving new fossil fuel reserves or infrastructure that extends the life of extractive projects, and must require fossil fuel clients to publish wind-down plans by COP26.
• Coal financing must be phased out rapidly, with a target of zero exposure by 2030 for OECD countries and by 2040 for the rest of the world.
• Financing is prohibited for projects causing the loss of natural forests or other ecosystems, particularly peatlands, and for companies failing to follow No Deforestation, No Peatland, No Exploitation (NDPE) policies.
• Financial institutions must measure and disclose their total carbon footprint, including land use emissions, and commit to halving their climate impact by 2030 and reaching zero by 2050.
• Paris alignment cannot be achieved through 'net zero' accounting that relies on carbon offsets, bio-energy with carbon capture and storage (BECCS), tree plantations, or geoengineering.

APA

Reclaim Finance (2020). PRINCIPLES FOR PARIS-ALIGNED FINANCIAL INSTITUTIONS. https://reclaimfinance.org/site/wp-content/uploads/2020/09/RAN_Principles_for_Paris-Aligned_Financial_Institutions-3.pdf

Chicago

Reclaim Finance. PRINCIPLES FOR PARIS-ALIGNED FINANCIAL INSTITUTIONS. 2020. https://reclaimfinance.org/site/wp-content/uploads/2020/09/RAN_Principles_for_Paris-Aligned_Financial_Institutions-3.pdf.

Wikipedia

{{cite press release |author=Reclaim Finance |title=PRINCIPLES FOR PARIS-ALIGNED FINANCIAL INSTITUTIONS |date=16 September 2020 |url=https://reclaimfinance.org/site/wp-content/uploads/2020/09/RAN_Principles_for_Paris-Aligned_Financial_Institutions-3.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{reclaimfinance2020principles, author = {{Reclaim Finance}}, title = {{PRINCIPLES FOR PARIS-ALIGNED FINANCIAL INSTITUTIONS}}, publisher = {Reclaim Finance}, year = {2020}, month = sep, url = {https://reclaimfinance.org/site/wp-content/uploads/2020/09/RAN_Principles_for_Paris-Aligned_Financial_Institutions-3.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }