{"id":61594,"date":"2023-03-01T18:36:52","date_gmt":"2023-03-01T17:36:52","guid":{"rendered":"https:\/\/staging.i4ce.org\/?post_type=publication&#038;p=61594"},"modified":"2023-03-02T12:10:03","modified_gmt":"2023-03-02T11:10:03","slug":"supporting-financial-institutions-developing-countries-in-their-alignment-journey-with-climate-goals","status":"publish","type":"publication","link":"https:\/\/staging.i4ce.org\/en\/publication\/supporting-financial-institutions-developing-countries-in-their-alignment-journey-with-climate-goals\/","title":{"rendered":"Supporting financial institutions in developing countries in their alignment journey with climate goals"},"content":{"rendered":"<h2><span data-contrast=\"auto\">How IFIs can start moving from a project, to a counterparty and system level approach<\/span><\/h2>\n<p>This report builds on previous work developed by the consortium of think tanks gathering Germanwatch, NewClimate Institute and the World Resources Institute, namely &#8216;<a href=\"https:\/\/newclimate.org\/resources\/publications\/aligning-financial-intermediary-investments-with-the-paris-agreement\" target=\"_blank\" rel=\"noopener\">Aligning financial intermediary investments with the Paris agreement<\/a>\u2019. Written in partnership with NewClimate Institute, this report provides practical guidance for International Financial Institutions (IFIs) to support financial institutions\u2019 alignment with the Paris Agreement goals, and contribute to transforming local financial systems. This guidance is developed around three pillars:\u00a0\u00a0<\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li data-leveltext=\"-\" data-font=\"Calibri\" data-listid=\"1\" data-list-defn-props=\"{&quot;335551671&quot;:0,&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Calibri&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;-&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"0\" data-aria-level=\"1\">developing a harmonised alignment assessment;\u00a0<\/li>\n<li data-leveltext=\"-\" data-font=\"Calibri\" data-listid=\"1\" data-list-defn-props=\"{&quot;335551671&quot;:0,&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Calibri&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;-&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"0\" data-aria-level=\"1\">supporting the alignment of financial intermediaries;\u00a0<\/li>\n<li data-leveltext=\"-\" data-font=\"Calibri\" data-listid=\"1\" data-list-defn-props=\"{&quot;335551671&quot;:0,&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Calibri&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;-&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"0\" data-aria-level=\"1\">at the national level, supporting the alignment of financial systems.\u00a0<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-size: 28px;\"><b>Developing a harmonised alignment assessment\u00a0<\/b>\u00a0<\/span><\/h2>\n<p><span data-contrast=\"auto\">There are a few IFIs that have developed approaches for assessing their financial intermediaries&#8217; alignment. <\/span><span data-contrast=\"auto\">These approaches however require different data and therefore necessitate different practices from financial intermediaries. Moving forward, it will be key for IFIs to agree on a <\/span><span aria-label=\"Contr\u00f4le de contenu de texte enrichi\"><span data-contrast=\"auto\">\u200b<\/span><span data-contrast=\"auto\">\u200b<\/span><\/span><span data-contrast=\"auto\">harmonised alignment assessment framework that will not only be used for their own assessment purposes but can drive real changes of practice.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span data-contrast=\"auto\">Based on a review of existing assessment frameworks and interviews with IFIs and experts from civil society organisations, authors suggest structuring this alignment assessment around:<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li data-leveltext=\"-\" data-font=\"Calibri\" data-listid=\"1\" data-list-defn-props=\"{&quot;335551671&quot;:0,&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Calibri&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;-&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"0\" data-aria-level=\"1\"><span data-contrast=\"auto\">a quantitative assessment of current <\/span><span aria-label=\"Contr\u00f4le de contenu de texte enrichi\"><span data-contrast=\"auto\">\u200b<\/span><span data-contrast=\"auto\">\u200b<\/span><\/span><span data-contrast=\"auto\">operations;\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"-\" data-font=\"Calibri\" data-listid=\"1\" data-list-defn-props=\"{&quot;335551671&quot;:0,&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Calibri&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;-&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"0\" data-aria-level=\"1\"><span data-contrast=\"auto\">a qualitative assessment of internal processes; and\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"-\" data-font=\"Calibri\" data-listid=\"1\" data-list-defn-props=\"{&quot;335551671&quot;:0,&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Calibri&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;-&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"0\" data-aria-level=\"1\"><span data-contrast=\"auto\">a qualitative assessment of the forward-looking alignment strategy.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span data-contrast=\"auto\">IFIs have the expertise to provide guidance on how to align internal processes with the Paris Agreement objectives over time. To develop comprehensive guidance, IFIs should rely on existing and upcoming international standards such as recommendations of the Task<\/span> <span data-contrast=\"auto\">Force on Climate-related Financial Disclosures (TCFD) or guidance on transition plans as well as guiding frameworks from voluntary initiatives on climate mainstreaming. Authors of the report suggest, on that basis, a principle-based step-by-step alignment journey for financial intermediaries.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<a href=\"https:\/\/staging.i4ce.org\/wp-content\/uploads\/2023\/03\/Table-2_au0203-scaled.jpg\" class=\"laz_img\">Click here to see the step-by-step alignement journey<\/a>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-size: 28px;\"><b>Supporting the alignment of financial intermediaries<\/b>\u00a0<\/span><\/h2>\n<p><span data-contrast=\"auto\">Introducing new alignment criteria will require IFIs to develop an engagement strategy with their financial intermediaries on climate change and alignment. The report suggests the following guiding principles for IFIs\u2019 engagement strategies:\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ol>\n<li><span data-contrast=\"auto\">`make the case\u2019 of Paris alignment for both development banks and commercial financial institutions;<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">\u2018lead by example\u2019 and build on their own experience to create a peer-to-peer engagement process on Paris alignment;<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">start progressively but systematically;<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">develop a pragmatic dialogue on <\/span><i><span data-contrast=\"auto\">how<\/span><\/i><span data-contrast=\"auto\"> to align driven by clear actions presented in a harmonised step-by-step journey;<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">develop a concrete dialogue on <\/span><i><span data-contrast=\"auto\">what<\/span><\/i><span data-contrast=\"auto\"> to align driven by the opportunities of the transition to low-GHG climate-resilient economies for the financial intermediary;<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">tailor this engagement process, taking into consideration:<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span>\n<ol>\n<li><span data-contrast=\"auto\">the countries and sectors in which financial intermediaries are operating,\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">the level of alignment of their financial intermediaries and willingness to align,<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">the influence financial intermediaries may have on the transition,\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">the influence IFIs may have on their financial intermediary.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p><span data-contrast=\"auto\">In addition, IFIs are uniquely equipped to build the capacity of financial intermediaries and help accelerate their alignment journey. Experts from IFIs, financial intermediaries<\/span><span data-contrast=\"auto\">,<\/span><span data-contrast=\"auto\"> and CSOs all agree that tailored technical assistance can have major impact <\/span><span data-contrast=\"auto\">on <\/span><span data-contrast=\"auto\">the transformation <\/span><span data-contrast=\"auto\">of<\/span><span data-contrast=\"auto\"> internal practice. Based on lessons learned from existing technical assistance on climate change, interviewed professionals from IFIs and financial intermediaries recommend this technical assistance to be:<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li data-leveltext=\"\u2022\" data-font=\"Arial\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Arial&quot;,&quot;469769242&quot;:[9642],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u2022&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"3\"><span data-contrast=\"auto\">offered to institutions who have publicly demonstrated their commitment to advance on the institutional integration of climate considerations at the strategic and operational levels;\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u2022\" data-font=\"Arial\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Arial&quot;,&quot;469769242&quot;:[9642],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u2022&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"3\"><span data-contrast=\"auto\">tailored to the institution\u2019s needs and developed in line with the institution\u2019s climate strategy, objectives, and targets;<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u2022\" data-font=\"Arial\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Arial&quot;,&quot;469769242&quot;:[9642],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u2022&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"3\"><span data-contrast=\"auto\">r<\/span><span data-contrast=\"none\">elying on clear and concrete objectives which present how the institution aims to get to the next alignment stage. This should be included in the contract obligation and closely monitored.\u202f<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-size: 28px;\"><b>Supporting the alignment of financial systems at the national level<\/b><b>\u00a0<\/b>\u00a0<\/span><\/h2>\n<p><span data-contrast=\"auto\">While providing support to individual financial institutions in their alignment journey is key, voluntary approaches will not be sufficient to align financial systems in developing countries. To ensure impact at scale, these efforts should be complemented by a climate-focused engagement and capacity building strategy to foster the integration of climate considerations into national regulation and supervision. This engagement strategy would contribute to creating an <\/span><span aria-label=\"Contr\u00f4le de contenu de texte enrichi\"><span data-contrast=\"auto\">\u200b<\/span><span data-contrast=\"auto\">\u200b<\/span><\/span><span data-contrast=\"auto\">enabling environment, and could be articulated in policy-based loans, including a technical assistance offer to provide support for the following:\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">strengthening the climate information infrastructure;<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">setting supervisory expectations and monitoring their implementation;<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">increasing financial institutions\u2019 awareness on climate risks (signalling, supervisory engagement, research) and identifying and assessing climate-related risks (including by running stress tests);<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"4\" data-aria-level=\"1\"><span data-contrast=\"auto\">requiring transition plans and integrating them into the supervisory process.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span data-contrast=\"auto\">Providing support to both individual financial institutions as well as partner country regulators and governments should be as coherent as possible, ideally along the lines of a joint IFI bottom-up and top-down approach. Considering current constraints, it is important that IFIs initiate work on how to best complement each other and prioritise efforts where they have the most added value. Moving forward, IFIs will need the resources and mandate to engage in these different areas of work at scale.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-61624 size-full\" src=\"https:\/\/staging.i4ce.org\/wp-content\/uploads\/2023\/03\/Figure-1_au0203.jpg\" alt=\"\" width=\"2068\" height=\"1415\" srcset=\"https:\/\/staging.i4ce.org\/wp-content\/uploads\/2023\/03\/Figure-1_au0203.jpg 2068w, https:\/\/staging.i4ce.org\/wp-content\/uploads\/2023\/03\/Figure-1_au0203-300x205.jpg 300w, https:\/\/staging.i4ce.org\/wp-content\/uploads\/2023\/03\/Figure-1_au0203-1024x701.jpg 1024w, https:\/\/staging.i4ce.org\/wp-content\/uploads\/2023\/03\/Figure-1_au0203-768x525.jpg 768w, https:\/\/staging.i4ce.org\/wp-content\/uploads\/2023\/03\/Figure-1_au0203-1536x1051.jpg 1536w, https:\/\/staging.i4ce.org\/wp-content\/uploads\/2023\/03\/Figure-1_au0203-2048x1401.jpg 2048w\" sizes=\"auto, (max-width: 2068px) 100vw, 2068px\" \/><\/p>\n<p><b><span data-contrast=\"auto\">These efforts are in line with current expert recommendations on the reform of the global financial architecture, which highlighted the importance of strengthening domestic public finance and capital markets that are likely to play an important role in meeting sustainable development financing needs <\/span><\/b><span data-contrast=\"auto\">(Songwe, Stern, and Bhattacharya 2022)<\/span><span data-contrast=\"auto\">. Capacity is often the main barrier for a green financial sector reform in developing countries and IFIs have a number of tools (policy-based loans, technical assistance, etc.) and resources (internal expertise, research and knowledge products, tools and methodologies, etc.) to build this capacity . The support for the alignment of local financial systems should be more explicitly discussed in current debates on the reform of multilateral development banks and how they may increase the impact of their activities.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Why is the international financial architecture being reformed? What are the challenges of development finance today? How should they be addressed?<\/strong> In two minutes, <a href=\"https:\/\/staging.i4ce.org\/en\/team\/alice-pauthier\/\" target=\"_blank\" rel=\"noopener\">Alice Pauthier<\/a> from <strong>I<span style=\"color: #ff0000;\">4<\/span>CE<\/strong> answers these questions and talks about Development finance.<\/p>\n<p>&nbsp;<\/p>\n<div class=\"embed-container\"><iframe src=\"https:\/\/www.youtube.com\/embed\/-88Xi_d0Cwg\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>Co-written with\u00a0<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-61595\" src=\"https:\/\/staging.i4ce.org\/wp-content\/uploads\/2023\/03\/Newclimate-institute.png\" alt=\"\" width=\"290\" height=\"140\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This report co-written with NewClimate\u00a0provides practical guidance for international financial institutions to support financial institutions\u2019 alignment with the Paris Agreement goals, and to more broadly contribute to transforming local financial systems. This guidance is developed around three pillars: a harmonised alignment assessment; the alignment of financial intermediaries; and\u00a0the alignment of financial systems at the national level.<\/p>\n","protected":false},"featured_media":61602,"template":"","meta":{"_acf_changed":false,"inline_featured_image":false},"type_publication":[49],"class_list":["post-61594","publication","type-publication","status-publish","has-post-thumbnail","hentry","type_publication-climate-report"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Supporting financial institutions in developing countries in their alignment journey with climate goals - I4CE<\/title>\n<meta name=\"description\" content=\"This report co-written with NewClimate\u00a0provides practical guidance for international financial institutions to support financial institutions\u2019 alignment with the Paris Agreement goals, and to more broadly contribute to transforming local financial systems. This guidance is developed around three pillars: a harmonised alignment assessment; the alignment of financial intermediaries; and\u00a0the alignment of financial systems at the national level.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.i4ce.org\/en\/publication\/supporting-financial-institutions-developing-countries-in-their-alignment-journey-with-climate-goals\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Supporting financial institutions in developing countries in their alignment journey with climate goals - I4CE\" \/>\n<meta property=\"og:description\" content=\"This report co-written with NewClimate\u00a0provides practical guidance for international financial institutions to support financial institutions\u2019 alignment with the Paris Agreement goals, and to more broadly contribute to transforming local financial systems. 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