Aligning development co‑operation and climate action : the only way forward.

Preface
Foreword
Acknowledgements
Editorial
Abbreviations and acronyms
Executive summary
	Key findings and proposed priority actions
Accelerating the transition to low-emissions, climate-resilient development pathways
	Why is it a priority to align with the Paris Agreement?
	What does Paris alignment mean for development co-operation?
	How can development co-operation align with the objectives of the Paris Agreement?
		Aligning with the objectives of the Paris Agreement at home
		Aligning with the objectives of the Paris Agreement in developing countries
		Aligning with the objectives of the Paris Agreement at the system level
	Alignment with the Paris Agreement is vital to accelerating the transition to low-emissions, climate-resilient development pathways
	References
	Notes
1.  Why is it a priority to align development co-operation with the objectives of the Paris Agreement?
	1.1. Sustainable development and climate change are inseparable
		Global accords recognise that climate and development objectives are interconnected
		Meeting the objectives of the Paris Agreement is essential to bring the Sustainable Development Goals within reach
	1.2. The objectives of the Paris Agreement are central to the mandate of development co-operation
	1.3. Aligning with the Paris Agreement creates opportunities for development
		Alignment will accelerate the shift to low-emissions pathways
		Alignment will support adaptation to adverse climate impacts and build resilience
		Alignment will help to ensure that no one is left behind in the transition
		Alignment will strengthen the health of ecosystems that support life on Earth
	1.4. Development co-operation is critical to unlocking ambitious climate action
		Development co-operation needs to apply financial resources more strategically
		Development co-operation should support countries to use this window of opportunity
	References
	Notes
2.  What does Paris alignment mean for development co-operation?
	2.1. Paris alignment means supporting ambitious climate action and reinforcing the principles of sound development
		The Paris Agreement establishes global objectives and processes to achieve them
		Two global mechanisms are key to delivering on the Paris Agreement
			Nationally determined contributions
			Long-term low emissions strategies
			Other mechanisms
		Ownership is fundamental to Paris alignment
	2.2. Paris alignment can be understood by its four main characteristics
		Characteristic 1: Paris-aligned development co-operation does not undermine the Paris Agreement but rather contributes to the required transformation
		Characteristic 2: Paris-aligned development co-operation catalyses countries’ transitions to low-emissions, climate-resilient pathways
		Characteristic 3: Paris-aligned development co-operation supports the short- and long-term processes under the Paris Agreement
		Characteristic 4: Paris-aligned development co-operation proactively responds to evidence and opportunities to address needs in developing countries
		The four characteristics of Paris alignment work in tandem
	2.3. Paris alignment means supporting climate action through financing, policy support and capacity development
		Development banks and development finance institutions have a primary focus on non-grant instruments typically used for infrastructure financing
		Development agencies are critical to facilitating the transformation that is needed
		Specialised agencies and vertical funds need to integrate the climate dimension into their policy and sector focus
		Paris alignment of development co-operation requires a stronger focus beyond the financing lever
	2.4. Paris alignment means inclusion of climate action in development co-operation strategies, programmes and operations
		Linking climate action to sustainable development requires alignment across development finance and associated activities
		Development actors have various approaches to alignment
			Development actors’ interpretations of Paris alignment suggest an emerging consensus
		Paris-aligned development co-operation is both top-down and bottom-up
			Top-down approaches anchor criteria in the objectives of the Paris Agreement
				Financing targets
				Investment criteria
				Mainstreaming
			Bottom-up processes increase capacity in developing countries to fulfil Paris objectives
				Nationally determined contributions
				Long-term strategies
	2.5. Paris alignment requires the integration of climate action across development finance
		Development financing needs to support Paris alignment as a part of broader financing for sustainable development
		Providers are not sufficiently integrating climate considerations across activities
		Achieving a balance between adaptation and mitigation objectives requires a focus on country needs
	References
	Notes
3.  How can development co-operation align with the objectives of the Paris Agreement?
	3.1. Development co-operation should support developing countries to eliminate inconsistencies between the objectives of the Paris Agreement and countries’ NDCs and LTSs
		Collectively, current NDCs are not ambitious enough to achieve the objectives of the Paris Agreement
		Very few countries have developed a long-term strategy to carry forward their ambition for climate action
		Planning for climate action is often still separate from other development and sector planning
		Paris-aligned development co-operation should respond to the core challenges
	3.2. Development co-operation should stop financing activities that undermine sustainable development
		Development finance continues to support the production and consumption of fossil fuels in developing countries
		Providers underemphasise climate considerations in sectors where developing countries have expressed adaptation needs
	3.3. Development co-operation needs to address challenges at home, within developing countries and at the system level
		Aligning with the objectives of the Paris Agreement at home
			Challenge 1: Development co-operation providers are not yet adequately set up to address the climate emergency
			The way forward: Integrate the climate imperative into providers’ mandates and performance systems and establish the right capacities and tools
			Challenge 2: Lack of coherence in donor countries’ broader international activities counteracts climate action through development co-operation
			The way forward: Donor countries should eliminate policy conflicts between their international activities and their commitments under the Paris Agreement
		Aligning with the objectives of the Paris Agreement in developing countries
			Challenge 3: Process and capacity limitations in many developing countries constrain the integration of climate action into critical plans and decision making
				Climate change is yet to be fully integrated into central development planning processes and policies
				Central institutions face resourcing constraints that impose fundamental limitations to climate capacity
			The way forward: Support the leadership and capacity of central actors and systems to drive the integration of climate change into policy and planning
			Challenge 4: Central systems in public administrations and private finance in many developing countries continue to perpetuate high-emitting, climate-vulnerable pathways
			The way forward: Assist countries to incorporate ambitious climate objectives throughout their financial and budgetary systems
		Aligning with the objectives of the Paris Agreement at the system level
			Challenge 5: The basic rules of the game of the international development system do not consider climate as an integral dimension of sustainable development
				Key standards for development co-operation do not yet reflect that sustainable development involves a shift to low-emissions, climate-resilient pathways
				There is a broader need for more systemic frameworks to guide low-emissions, climate-resilient development
			The way forward: Adopt core definitions and mechanisms to ensure Paris alignment at the system level
			Challenge 6: Fragmented approaches in development co-operation limit the scale of effective climate action
				Lack of transparency and common access standards limits the potential impact of climate-related development finance
				Fragmented approaches turn climate data and information from signal into noise
				Lack of standardisation limits the mobilisation of resources to promote sustainable infrastructure at scale
			The way forward: Providers should drive effective, scaled-up climate action through common standards in finance, data and infrastructure
			Challenge 7: Large volumes of finance are available globally, but systemic barriers impede investment in low-emissions, climate-resilient infrastructure in developing countries
			The way forward: Focus on effective partnering to promote finance for investments in low-emissions, climate-resilient infrastructure at scale
	References
	Notes
		Annex A. Members of the High-Level Advisory Group
		Annex B. Members of the Informal Expert Group
		Annex C. Methodology
		Official development finance data
			The Rio Marker Methodology
			The Climate Components Methodology
			Accounting for climate-related development finance
			Data limitations
			Providers included by type
		Survey
		Literature and desk reviews
		Expert guidance
		Blank Page
Annex A. Members of the High-Level Advisory Group
Annex B. Members of the Informal Expert Group
Annex C. Methodology