In order for development finance institutions, including multilateral development banks and bilateral, regional and national development banks to “align” themselves with the Paris Agreement, they must make sure that their activities conducted through financial intermediaries are also aligned.

Climate-related disasters are increasing in frequency and severity and both economic and human losses are climbing. Unfortunately, developing countries, which are the least equipped to deal with disasters, are often impacted the most. Over the past two decades, new financial tools have emerged to help developing countries cope with disaster.