The African Development Bank (AfDB) and other Multilateral Development Banks (MDBs) have rolled out principles aimed at aligning climate financing with the Paris Agreement commitments made in 2017.
In a statement, the pan-African lender said the principles will help to expedite the transition to a low-carbon and climate-resilient continent by providing support towards anti-climate change projects.
What’s more, the principles will consider the ” common but differentiated responsibilities and respective capabilities” which highlighted the Paris Agreement.
Consequently, the MDBs agreed to align their financial flows with the objectives of the Paris accord of 2017.
Other MDBs included the Asian Development Bank, Asian Infrastructure Investment Bank, Council of Europe Development Bank and the European Bank for Reconstruction and Development.
European Investment Bank, Inter-American Development Bank Group, Islamic Development Bank, New Development Bank, and the World Bank Group are also part of the alignment.
Milestone towards Paris Agreement reality
While making his remarks, Anthony Nyong, AfDB’s Group Director for Climate Change and Green Growth, described the principles as a key milestone for the multilateral banks in their role of spurring climate action.
Nyong affirmed AFDB’s commitment to strengthening the capacity of African countries in climate action at a time when the global focus has shifted to the continent described as “the most vulnerable” to the effects of climate change.
“We are very pleased to see the publication of these high-level principles as they deliver on a key milestone for the MDBs’ work to align all financial flows with the goals of the Paris Agreement,” Nyong noted.
“As MDBs move to apply these principles across the board, we remain committed to strengthening the capacity of African countries to deliver on their NDCs (Nationally Determined Contributions).”
Echoing Global Finance Impact Resolution
The MDBs adopted the new principles weeks after global leaders called for apt and effective financial systems during the Global Finance Impact Summit held in Paris, France.
French President Emmanuel Macron led other top leaders in rallying the world to consider the proposal for a fair financial system alive to Africa’s challenges and debt situation- among other underlying factors.
“Policymakers and countries shouldn’t ever have to choose between reducing poverty and protecting the planet,” President Macron started while addressing the Global Finance Impact in June.