Report card: How is the IDB Group supporting PA alignment progress?

I. Our focus on climate change is outlined in our Vision 2025 roadmap as well as in our Second Update to the Institutional Strategy. However, we have taken the additional step of designing the IDB Group’s Climate Change Action Plan 2021-2025 that outlines how we will be first movers and leaders in Latin America and the Caribbean to address the risks of climate change and advance the goals laid out in the Paris Agreement (PA). As part of our action plan, the IDB is committed to:

a. Full PA alignment of new operations from January 2023 onward.

b. Development of approaches to PA alignment that respond to countries’ priorities and needs (see next section).

c. Internal and external knowledge and capacity building.

d. Improvements in our incentive structures to increase financial flows towards projects that make active contributions to climate and environmental objectives.

e. Expanded use of innovative solutions, tools, and financing structures.

f. Sustained action to promote PA alignment of internal activities at IDB Group.

A firm grounding on national realities and client’s business models is a fundamental feature of IDB Group’s PA alignment process; this is what fosters country-ownership and realistic implementation mechanisms to fully deliver on country-level PA commitments.