Regional : Operationalizing Paris Alignment in the Country Programming Processes

Multisector / ADB's corporate management, policy and strategy development

The Paris Agreement 3 aims to strengthen the global response to the threat of climate change, in the context of sustainable development and efforts to eradicate poverty. The agreement was passed in 2015, is supported by all ADB member countries, and it commits signatories to limit the increase in the global average temperature (mitigation), increase the ability to adapt to the adverse impacts of climate change (adaptation and resilience), and to align finance flows with these goals.

ADB committed to the full alignment of ADB's sovereign operations with the goals of the Paris Agreement by 1 July 2023, and nonsovereign operations to 85% by 1 July 2023 and fully by 1 July 2025. This commitment was set in ADB President's Vision Statement (July 2021) and is guided by ADB Strategy 2030 (OP 3), that states that ADB will align all new operations with the mitigation and resilience goals of the Paris Agreement and report on aligned and non-aligned finance flows. ADB's effort in contributing to the goals of the Paris Agreement is consistent with the joint MDB Paris Alignment Framework. Since COP24, when MDBs announced their vision to align financial flows with the Paris Agreement in the form of a joint statement, ADB's Climate Change and Disaster Risk Management Division, in consultation with the operations departments and Strategy and Policy Department through the ADB internal Paris Alignment Working Group, has been working together with the climate units of the other MDBs to continue developing elements of the joint MDB Paris Alignment Framework and bring it towards road-testing and piloting in ADB operations. This work is continuing during the piloting and optimization phase and then during the compliance phase starting at the target date for Paris Alignment at ADB.

For ADB to succeed in supporting its clients deliver on the goals of the Paris Agreement, ADB must strengthen DMCs' capacity to identify and make Paris-aligned investments that are consistent with their long-term strategies for low GHG-emissions and climate-resilient development pathways. Implementing this framework at ADB does not simply consist of creating a way forward to internally ensure that operations are aligned with the Paris Agreement. It will also require strengthening DMC capacity to coordinate relevant parts of the government around climate goals and to identify financing opportunities, which will lead to formulating project requests around those goals. Such Paris-aligned investments that incorporate and are guided by long-term strategies for low GHG-emissions and climate-resilient development as well as just transition pathways8 can deliver decarbonization and resilience, but also jobs, sustainable economic growth as well as further co-benefits.

As ADB embarks on implementing Paris Alignment, it needs to ensure that knowledge and capacity is built among country stakeholders (including engaging with the private sector and civil society as relevant) as well as internally. This will enable ADB to actively support DMCs' Paris-aligned low-emissions and climate-resilient development pathways through our operations, mainstreaming Paris Alignment in country dialogue and strategies to guarantee that DMCs have a strong upstream pipeline of Paris-aligned operations. Ensuring adequate levels of knowledge and capacity among country stakeholders and at ADB is meant to ensure all new ADB operations are aligned with the Paris Agreement, while systems are set up that facilitate the identification and creation of Paris-aligned investment opportunities with stakeholders across sovereign and non-sovereign operations.

Mainstreaming of Paris Agreement alignment considerations in the country programming processes of participating ADB DMCs promoted

Integration of Paris Agreement alignment considerations and country climate objectives in the operational programs of participating DMCs enhanced

Country dialogues, analysis, and strategies supported

DMCs' capacity to identify upstream pipeline of operations that are aligned with the Paris Agreement strengthened