From climate finance commitments to making all financial flows consistent with the objectives of the Paris Agreement, the Supporting Institutions of the Mainstreaming Initiative presented lessons learned on current practices, announced new commitments and detailed their approaches to integrate climate change increasingly across all their activities.

1) Financing mitigation, adaptation and loss and prejudice

2) Tracking mitigation and adaptation finance

3) Aligning operations with the Paris Agreement objectives

  • Multilateral Development Banks (MDBs) released a Joint Framework for Aligning their Activities with the Goals of the Paris Agreement based on 6 Buildings Blocks:
    • Alignment with mitigation goals
    • Adaptation and climate-resilient operations
    • Accelerated contribution to the transition through climate finance
    • Engagement and policy development support
    • Reporting
    • Align internal activities
  • The International Development Finance Club (IDFC) released a Position Paper on Aligning with the Paris Agreement, which involves:
    • increasingly mobilize finance for climate action
    • support country-led climate related policies
    • seek to catalyze investments, and to mobilize private capital (local & international)
    • recognize the importance of adaptation and resilience, especially in most vulnerable countries
    • support the transition from fossil fuels to renewables financing
    • Aligning with the Paris agreement is also a process of internal transformation of the institutions, which can build on existing principles and/or practices
  • Five commercial banks, including BBVA, BNP Paribas, ING, Standard Chartered and Société Générale, committed to measure the climate alignment of their lending portfolio, and to explore ways to progressively steer financial flows through their core lending towards the goals of the Paris Agreement.

4) Demonstrating how the financial sector can support NDCs:

  • The Asian Development Bank (ADB) launched the NDC Advance platform to help countries mobilize finance to implement Nationally Determined Contributions (NDCs)
  • The French Development Agency (AFD) presented concrete cases of how AFD is assisting the most vulnerable countries with their climate change mitigation/adaptation policies through Adapt’Action.
  • The Inter-American Development Bank presented how its tool NDC Invest supports countries in the LAC region as they engage in the alignment of their national portfolios to meet their international climate change and development commitments.
  • For Africa Day at COP24, the African Development Bank highlighted the recently established Africa NDC Hub, which focuses on three key support areas:
    • Fostering long-term climate action – this entails analytical work to align country-NDCs with national development agenda, its voluntary contributions, and to explore options to raise ambition necessary for low carbon and climate resilience growth on a long-term trajectory.
    • Mobilizing means for implementation – finance, capacity building, technology development and transfer. These are critical enablers to achieve the objectives of the Paris Agreement within the context of African sustainable development. The Hub will engage global climate funds and the private sector to cater for both conditional and unconditional pledges of African NDCs; and
    • Coordination, Advocacy and Partnerships – the Hub will provide a platform for coordination of NDC support activities on the continent for the efficient use of limited resources.

5) Urging governments to implement the actions needed to achieve the goals of the Paris Agreement

415 investors including BNP, FMO and HSBC, representing over USD $32 trillion in assets released a Global Investor Statement to governments on climate change, calling them to:

  • Achieve the Paris Agreement’s goals
    • Update and strengthen nationally-determined contributions to meet the emissions reduction goal of the Paris Agreement, starting the process now in 2018 and completing it no later than 2020, and focusing swiftly on implementation
    • Formulate and communicate long-term emission reduction strategies in 2018
    • Align all climate-related policy frameworks holistically with the goals of the Paris Agreement
    • Support a just transition to a low carbon economy.
  • Accelerate private sector investment into the low carbon transition
    • Incorporate Paris aligned climate scenarios into all relevant policy frameworks and energy transition pathways
    • Put a meaningful price on carbon
    • Phase out fossil fuel subsidies by set deadlines
    • Phase out thermal coal power worldwide by set deadlines.
  • Commit to improve climate-related financial reporting
    • Publicly support the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) recommendations and the extension of its term
    • Commit to implement the TCFD recommendations in their jurisdictions, no later than 2020
    • Request the FSB incorporate the TCFD recommendations into its guidelines
    • Request international standard-setting bodies incorporate the TCFD recommendations into their standards.