The World Bank Group (WBG) has made a commitment to align all its financing operations with the goals of the Paris Agreement in its Climate Change Action Plan 2021-2025, which has been extended until June 30, 2026, with no other changes.
Paris Alignment of the Bank Group’s new financing flows is the most comprehensive institutional undertaking by the Bank Group to reconcile development and climate goals. All Bank Group financed operations will have to support the deployment of lower-carbon options as applicable, whenever technically and economically feasible; prevent carbon lock-in; and ensure material climate risks have been assessed and reduced to an acceptable level through the design of a project.
The World Bank Group’s commitment is part of a broader Multilateral Development Bank (MDB) vision to align all financial flows with the objectives of the Paris Agreement. This vision is reflected in the MDB joint declaration on Paris Alignment, supported by the Bank Group and eight other MDBs. The Bank Group’s Paris Alignment approach recognizes that countries have differentiated circumstances in implementing the Paris Agreement. As such, our Paris Alignment assessments will be operation-, context-, and time-specific, and for a given set of development objectives.
The World Bank Group will use an integrated vetting approach for every project – screening, managing, and reducing climate risks.
IFC and Paris Alignment
IFC committed to achieving the target of 85 percent of Board-approved operations being Paris Aligned (in accordance with the Joint MDB Methodological Principles for Assessment of Paris Agreement Alignment) starting July 1, 2023, and 100 percent starting July 1, 2025. In FY25, IFC reached 100 percent Paris Alignment, exceeding the 85 percent target. IFC remains on track to achieve 100 percent in FY26. (Note: IFC’s FY25 PA reached 100%, up from previously reported 99% due to a delay in a few project assessments.)
IFC’s Paris Alignment assessments will take into account each country’s pathway towards low greenhouse gas emissions and climate-resilient development and determine whether an activity advances, hinders, or is “neutral” when it comes to achieving progress towards the goals of the Paris Agreement. An IFC investment is considered aligned when:
- On climate mitigation, it actively contributes to decarbonization pathways (e.g., renewable energy) or supports activities that do no harm (e.g., water supply systems that are not emissions intensive); and
- On climate adaptation and resilience, it manages physical climate change risks effectively, with measures such as drought-resistant crops or setting up early warning systems.
Last updated: October 2025