The World Bank Group (WBG) is committed to aligning all its financing operations with the goals of the Paris Agreement , as set in its Climate Change Action Plan, which has been extended indefinitely with a shift from inputs to outcomes to maximize development impact.
Paris Alignment of the Bank Group’s new financing flows represents one of the most comprehensive institutional commitments to integrate development and climate objectives. It aims to ensure that all Bank Group-financed operations support low-carbon development pathways, including by promoting lower-carbon alternatives wherever technically and economically feasible, avoiding carbon lock-in, and identifying and managing material climate risks in project design.
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 Joint MDB Methodological Principles for Assessment of Paris Agreement Alignment supported by the Bank Group and eight other MDBs. The Bank Group’s Paris Alignment approach recognizes that countries have differentiated circumstances, priorities, and pathways for implementing the Paris Agreement. Accordingly, Paris Alignment assessments take into account the specific operation, country context, and timing, while considering the development objectives that the operation seeks to achieve.
The World Bank Group uses an integrated vetting approach for every project, screening for, 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 fiscal 2026, 100 percent of IFC’s new eligible investments were assessed as Paris aligned under the applicable Joint MDB PA Methodology.
IFC’s Paris Alignment assessments will take into account each country’s pathway toward low greenhouse gas emissions and climate-resilient development and determine whether an activity advances, hinders, or is “neutral” when it comes to achieving progress toward 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 2026