Updated Guide “The Central Role of Financing in the Paris Agreement and the Opportunities for BNDs” (2016)

AUTHOR:Hernan Carlino, Maria Netto, Margarita Cabrera and Lucila Serra

DATE:November, 2016

TOPICS: NDBs, Green finance, climate finance

SUMMARY: For the national development banks, the Paris Agreement proposes new strategic challenges The Paris Agreement, which has already entered into force on 4 November 2016, sets in motion a process of transformation and innovation in the world economy to mitigate climate change and mitigate its impacts. A re-reading of the Agreement, some months after its adoption, allows to draw some new conclusions and to examine, with the greater perspective of the advances, the implications of the Paris Agreement (PA) for the financial, international, regional and national sectors. In the latter sense it should be recognized that there is a new agenda for the financial services sector which becomes more evident as the implementation process progresses through the elaboration of rules and guidelines and there is greater clarity as to what the Agreement Postulate. Those responsible for financial institutions should find, in this context of profound changes in the economic rules of play and probably in the evolution of existing macro-prudential regulations, an effective way to identify risks and seize opportunities at the same time which they deal, in the short term, with the regulatory pressures and those of its shareholders for combining results and strength. To understand some of the implications of the PA, the analysis focuses here with greater emphasis on the perspective of the national development banks (NDB) and their key role in the development of significant changes in the national economies in which they will embark in this coming decade and beyond. This publication is only available in Spanish.