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Lessons from the use of climate-related decision-making standards and tools by dfis to facilitate the transition to a low-carbon, climate-resilient future.

The integration or ‘mainstreaming’ of climate change into development finance decisions poses a broad number of operational challenges.

Key points

A review of the integration of climate change into the operational activities of DFIs and other financesector actors has identified three broad families of tools: qualitative; quantitative; and exposure-based approaches applied by DFIs to mainstream climate change into their activities.
Investment decision making can be divided into two stages: the “upstream” policy or strategy level and a “downstream” or “project / intervention” analysis. Development finance institutions are combining different types of tools to mainstreaming climate change and the transition to a low-carbon climate resilient development model into their project-based decision-making practices.