Skip to content

Mainstreaming low-carbon climate-resilient growth pathways into investment decision-making

Lessons from development financial institutions on approaches and tools

Drawing from existing studies of current practice among mainly public development finance institutions (DFIs), the paper from the Institute for Climate Economics (I4CE), presents three families of tools and metrics used by DFIs to integrate climate change into investment decision-making.

Key points

It presents a number of examples of how institutions have mainstreamed these issues into upstream strategic and downstream assessment processes. It also identifies the further challenge of moving from a system of tools and indicators that focus principally on climate finance tracking – important to foster trust and progress on international cooperation – to a means of aligning activities across financial institutions and the entire economy with the transition to a low-carbon climate-resilient economic model necessary to achieve the 2°C commitment.