How to align with the Paris Agreement - A Resource Note for Banking Associations and Banks

In 2015, the Paris Agreement was signed with a global action plan to limit global warming to well below 2°C and pursue efforts to limit it to 1.5 °C. However, still much needs to be done and in Glasgow efforts were made to formalize 1,5 °C as the new main target. COP26 President Alok Sharma stated during the COP26 last November: ‘COP26, is our last best hope to keep 1.5 in reach.’ The European Commission also announced that ‘the binding Union 2030 climate target shall be a domestic reduction of net greenhouse gas emissions (emissions after deduction of removals) by at least 55 % compared to 1990 levels by 2030.’

Also at international, European and national level many initiatives such as the Principles for Responsible Banking of UNEP-FI and regulations such as the EU Sustainable finance action plan and national climate laws provide frameworks to align with the Paris Agreement. Banks can play an important role in the transition by aligning their portfolios with the Paris agreement. Against that backdrop, banking associations and banks have developed commitments to support companies in reducing GHG emissions.

This paper will provide further insights into how banking associations, along with their members, or a group of frontrunner banks can align with the Paris Agreement by formulating joint objectives through commitments and opportunities for collaboration.

How to align with the Paris Agreement - A Resource Note for Banking Associations and Banks