The Inter-American Development Bank (IDB) supports the Latin America and the Caribbean (LAC) region in the promotion of low-carbon and climate-resilient development.

Aligning IDB Group financing to the goals of the Paris Agreement (PA) is part of its agenda, and one of the pillars in its Climate Change Action Plan 2021-2025.

The IDB Group “Paris Alignment Implementation Approach” (PAIA) is proposed as an analytical tool that encompasses a set of principles, a methodology, and technical guidance for project teams to assess, during project preparation, the alignment of new operations with the mitigation and adaptation goals of the PA. The scope of the PAIA’s application covers all investment loans, policy-based loans, guarantees, equity, investment grants with an approved amount greater than 3 million dollars, and long-term corporate finance.

The PAIA has been designed with embedded flexibility to acknowledge different national contexts, and is to be updated on the basis of evolving knowledge, feedback, and lessons learned by all Multilateral Development Banks (MDBs). The “Joint MDB Methodological Principles for Assessment of Paris Agreement Alignment of New operations” which are the basis for the PAIA and were developed by IDB Group in collaboration with other MDBs.