African Development Bank’s Commitment to Paris Alignment
The African Development Bank is fully committed to aligning its operations and investments with the goals of the Paris Agreement. This alignment supports Africa’s sustainable development, helps address climate challenges, and promotes climate resilience and low-carbon growth, in line with the Bank’s Ten-Year Strategy and the African Union’s Agenda 2063 “The Africa We Want”.
The Paris Agreement is a legally binding international treaty on climate change, adopted by 196 parties at the UN Climate Change Conference (COP21) in Paris on December 12, 2015. It entered into force on November 4, 2016. The primary goal of the Paris Agreement is to limit global warming to well below 2°C, preferably to 1.5°C, above pre-industrial levels.
Understanding Paris Alignment
The Bank’s commitment on Paris Alignment is part of a broader MDB vision to align all financial flows with the objectives of the Paris Agreement. It started with the announcement of joint MDB support towards implementation of the outcomes of the Paris conference (COP21) in 2015, followed by the 2017 announcement of joint MDB commitment to align financial flows to the objectives of the Paris Agreement (Article 2.1c) at the One Planet Summit and COP23. This was reiterated in 2018 through the joint MDB declaration of a Paris Alignment approach with six building blocks under the joint MDB Paris Alignment Framework.
Paris Alignment means ensuring that all strategies and operations are consistent with the goals set out in Article 2.1 of the Paris Agreement:
- Limit global warming to well below 2°C;
- Enhance adaptive capacity and resilience;
- Align financial flows with low-emission, climate-resilient development.
This requires a systemic transformation across sectors and economies. As public institutions, MDBs—including the African Development Bank—are uniquely placed to lead this transformation.
The MDB Joint Framework and Six Building Blocks
At COP24 in 2018, MDBs adopted a joint framework structured around six building blocks (BBs) to support alignment:
- Mitigation (BB1)
- Adaptation and Resilience (BB2)
- Climate Finance (BB3)
- Policy Engagement and Support (BB4)
- Reporting (BB5)
- Internal Alignment (BB6)
The Bank is aligning its operations with this framework through its Climate Change and Green Growth Strategic Framework, consisting of a Policy foundation, a Strategy (2021–2030), and an Action Plan (2021–2025).
Progress on Paris Alignment
The African Development Bank’s Climate Change and Green Growth Department leads the Paris Alignment process through its Paris Alignment Working Group, coordinating action across all six BBs, together with Sector complexes and Corporate departments.
The African Development Bank is piloting Paris Alignment screening tools for mitigation and adaptation, and integrating them with project appraisal for direct lending, policy-based operations, general corporate purpose finance, and financial intermediation. These tools are now embedded in the Bank’s Climate Safeguards System (CSS).
BB3: Scaling Up Climate Finance
The Bank is actively mobilizing finance from sources like:
- Climate Investment Funds (CIF), Green Environment Facility (GEF), and Green Climate Fund (GCF)
- Desert to Power (DtP)
- Sustainable Energy Fund for Africa (SEFA), African Financial Alliance on Climate Change (AFAC), Adaptation Benefits Mechanism (ABM), Africa Circular Economy Facility (ACEF), and Africa Adaptation Accelerator Program (AAAP)
- Climate Action Window (CAW) as an African Development Fund (ADF)-16 commitment towards supporting climate action for the 37 most vulnerable countries in Africa, with a co-financing leveraging target of 1:4
Through these initiatives, the Bank is demonstrating leadership in climate finance and catalyzing transformative action.
BB4: Policy Engagement and Support
The Bank supports countries in developing long-term strategies and enhancing NDCs through:
- Africa NDC Hub
- A proposal for a new LTS Facility
- Expansion of Africa Climate Change Fund (ACCF)
- Creation of a Climate Action Window (CAW) under ADF-16, supporting NDC and LTS development
BB5: Reporting
The Bank is developing a Monitoring, Evaluation, Reporting, and Learning (MERL) system to track alignment progress. Though joint MDB reporting frameworks are still in development, the Bank is contributing to shaping common approaches for metrics and outcomes reporting.
BB6: Internal Alignment
The Bank developed an internal paper on alignment of Corporate Functions. It has assessed the carbon footprint of its headquarters and country offices and is working to align:
- Energy and water use
- Procurement and waste
- Travel, pensions, and treasury operations
- Governance
The Bank is committed to publishing GHG emissions, enhancing reporting, and adopting science-based emissions targets. While challenges persist—especially in procurement and investment on the continent—the African Development Bank is exploring short-term offsets as it transitions to long-term solutions.
Climate Finance for Resilience and Low-Carbon Growth
A Bold Financing Vision
The African Development Bank aims to mobilize $25 billion in climate finance by 2025 and increase Africa’s share of global climate finance from 3% to 10% by 2030. This is supported by its Climate Change and Green Growth Framework.
Investment Progress
By end-2024, the Bank had already mobilized $19.5 billion—78% of its $25 billion target. In 2024 alone:
- $5.5 billion in climate finance was allocated, making up 49% of total operations:
- 56% for adaptation
- 44% for mitigation
Sectoral and Regional Reach
Climate finance is targeted at energy, water, agriculture, and infrastructure. The Bank ensures projects are context-specific and responsive to local vulnerabilities and opportunities.
Strategic Outcomes
The African Development Bank’s climate investments:
- Expand access to clean energy
- Strengthen agricultural resilience
- Promote sustainable infrastructure
These contribute directly to Africa’s long-term development goals and a more climate-resilient future.
Tools and Strategies for Paris-Aligned Investments
Climate-Informed Project Design
The Bank has created technical tools and guidance to support project assessments, including:
- Paris Agreement-alignment criteria
- A multilingual Excel-based decision tool
- Continuous updates based on evolving standards
These tools help ensure projects are well-designed and climate-aligned from the start.
Institutional Capacity and Training
Bank staff receive dedicated training on Paris alignment, including:
- Regional training workshops
- A new Paris alignment module under development for the Bank’s training academy
Support for Low-Income Countries
Through the CAW, the Bank channels resources to low-income countries. CAW’s USD 429 million includes sub-windows for mitigation, adaptation, and technical assistance.
Governance and Accountability
The Bank is implementing a governance framework with:
- Focal points for each Paris alignment block
- Regular working group meetings to coordinate and track progress
Looking Ahead: Deepening Paris Alignment
Sector Guidance and Carbon Pricing
New sector guidance notes are being developed for key sectors like energy, agriculture, and industry. The Bank is also exploring shadow carbon pricing to account for climate risks in project planning.
Decarbonizing Internal Operations
To lead by example, the Bank is:
- Assessing its full carbon footprint
- Exploring an internal carbon price to reduce emissions from its own operations
Paris Alignment Roadmap to 2025
A dedicated roadmap is under development to:
- Identify remaining gaps
- Establish timelines and key performance indicators (KPIs)
- Ensure full integration of Paris goals across operations and internal systems by 2025
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