{"id":24118,"date":"2019-09-19T12:43:15","date_gmt":"2019-09-19T10:43:15","guid":{"rendered":"https:\/\/preprod.i4ce.org\/publication\/a-framework-for-alignment-with-the-paris-agreement-why-what-and-how-for-financial-institutions\/"},"modified":"2022-12-22T10:59:14","modified_gmt":"2022-12-22T09:59:14","slug":"framework-alignment-with-paris-agreement-why-what-and-how-for-financial-institutions","status":"publish","type":"publication","link":"https:\/\/staging.i4ce.org\/en\/publication\/framework-alignment-with-paris-agreement-why-what-and-how-for-financial-institutions\/","title":{"rendered":"A Framework for Alignment with the Paris Agreement: Why, What and How for Financial Institutions?"},"content":{"rendered":"

Since the adoption of the Paris Agreement, financial institutions and other economic actors have taken commitments to \u2018align\u2019 their activities with the goals agreed to by national governments in 2015. A growing body of literature from both the research community and practitioners has emerged on \u2018alignment\u2019 with the Paris Agreement goals \u2013 but to date no overarching framework has been proposed to define what it means and implies in practice. This Discussion Paper written by I4<\/span>CE<\/strong> aims to fill this gap and propose a framework that can be used by all institutions, governments and companies to develop their alignment strategies.<\/em><\/p>\n

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Part of a joint study conducted with the Climate Policy Initiative, this<\/strong> discussion paper proposes a framework that can be used by financial institutions seeking to align strategies and operations with the Paris Agreement<\/strong>. Building on an analysis of how the Paris Agreement has reframed climate action from a focus on the near-term incremental increase of adaptation and mitigation actions to emphasize the long-term transformation of economies and societies, I4<\/span>CE<\/strong>‘s framework for alignment specifies three dimensions for action:<\/p>\n

A Comprehensive Scope of Action<\/em><\/strong>: institutions should seek to directly or indirectly support low-GHG climate-resilient development across all business areas \u2013 and take into account impacts on broader systems and value chains.<\/p>\n

A Long-Term Time Horizon to Guide Impact<\/em><\/strong>:<\/strong> institutions should prioritize actions that are consistent with both near-term climate objectives and long-term goals and do not lead to lock-in or mal-adaptation.<\/p>\n

An Ambitious Scale of Contribution<\/em><\/strong>:<\/strong> institutions should seek to contribute to the ambitious goals of the Agreement through activities that:<\/p>\n