Climate-Related Standards and Multilateral Finance for Development

Abstract

This article discusses climate-related standards that development finance institutions establish or apply to projects supported by their investments. It focuses particularly on multilateral development banks given their major role in providing finance to developing countries, where the bulk of the world’s fastest growing emissions are taking place. It looks at proposed and recently adopted standards, as well as different perspectives developed and developing countries have regarding these standards. It also discusses how these standards might be impacted by the evolution of the United Nations Framework Convention on Climate Change (UNFCCC) negotiations and concludes that there will be continuing challenges to implement these standards unless developed countries fulfill their pledge of expected finance.