Key takeaways from the event include:
- Ambitious Paris alignment needs to be embedded or mainstreamed in a PDBs’ strategy, in its procedures and methodology, in its capacity considerations, and in its accountability framework.
- PDBs need to set context-aware ambitious decarbonisation targets, while leveraging their added values, and need to ‘do good beyond doing no harm’. It’s not about reducing immediate emissions from operations but about funding activities that contribute to positive and longer-term transformation of a sector or a value chain.
- Multilateral development banks need to revise their universally aligned list, proactively seek opportunities for climate action, apply a counterparty approach to all counterparties, and ensure that operations do not increase (existing) vulnerabilities to climate hazards.
- PDBs on the panel recalled the importance of national development banks and called for further collaboration between PDBs, including IDFC members.
- Non-earmarked finance is a potentially good tool to transform economic actors, but it requires ensuring the progress planned has a broad scope, and high impact.
- Changing the policy frameworks to move countries towards Paris alignment has the greatest impact.