IsDB

Overview of climate mainstreaming approach and goals:

At the IsDB, mainstreaming climate change and building resilience is central to the business model of the Bank, which is expected to enable the Bank to enhance the overall design and sustainability of its interventions in member countries. We pursue mainstreaming climate change as a significant opportunity to connect the Bank’s investments with the sustainability challenges the world faces. Mainstreaming climate change at IsDB is built on four work streams namely: mainstreaming in the Bank’s operations, support MCs NDC realization, capacity building and knowledge generation in MCs and financing and leveraging resources for climate action. These work streams are carried out through various approaches including reflecting climate objectives in all strategic documents and policies of the Bank including Member Countries’ Partnership Strategies (MCPS), operating guidelines, sector-focused policies, and strategies such as agriculture, transport, energy, women, and youth empowerment. Ina addition, the Bank supports climate action in member countries through the continuous development of tools and guidance documents, tailored financial products and modalities, knowledge products and capacity development & training programs to further strengthening sustainable imperatives in member countries. Furthermore, as nations make effort to build back better post COVID-19, the Bank is increasing its mainstreaming effort with a focus on green and resilient recovery in its offerings to member countries.

Principal Strategic Documents:

• IsDB Climate Change Policy (2019)
• IsDB Sustainable Finance Framework (2019)
• 2020-2025 Climate Action Plan (2020)

Principal Tools and Methodologies:

• Common Principles for Climate Mitigation Finance Tracking
• Common Principles for Climate Change Adaptation Finance Tracking
• A Framework and Principles for Climate Resilience Metrics
• Joint MDB Methodological Principles for Assessment of Paris Agreement Alignment of New Operations— Direct Investment Lending Operations
• Joint MDB Methodological Principles for Assessment of Paris Agreement Alignment of New Operations — Intermediated Financing:
• Joint MDB Methodological Principles for Assessment of Paris Agreement Alignment of New Operations — General Corporate Purpose Financing:
• Joint MDB Methodological Principles for Assessment of Paris Agreement Alignment of New Operations — Policy-Based Lending Operations
• Joint MDB Methodological Principles for Assessment of Paris Agreement Alignment of New Operations – List of Activities Considered Universally Aligned with the Paris Agreement’s Mitigation Goals or Not Aligned with the Mitigation Goals
• The MDBs’ alignment approach to the objectives of the Paris Agreement : The MDBs’ approach is based on six building blocks that have been identified as the core areas for alignment with the objectives of the Paris Agreement. A joint MDB working group is developing methods and tools to operationalize this effort under each of the building blocks:
  • 1) Alignment with mitigation goals ;
  • 2) Adaptation and climate-resilient operations ;
  • 3) Accelerated contribution to the transition through climate finance ;
  • 4) Engagement and policy development support ;
  • 5) Reporting ; and,
  • 6) Align internal activities.

Key reports and other materials published by the institution:

• IsDB Climate Change Knowledge Hub
• Annual Report 2022
• MDBs – 2021 Joint Report on Climate Finance