To contribute to the fight against climate change, the MDBs have to date largely operated under what we refer to as a Climate Finance Paradigm. That paradigm involves defining, tracking, and maximizing the amount of climate finance that MDBs provide and mobilize.

This working paper assesses how Multilateral Development Banks can support the global temperature goal of the Paris Agreement. It illustrates how the banks could strengthen existing tools to align their portfolios and activities with the globally agreed mitigation goal.