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Germany2025-10en

Unpacking Article 2.1(c): Conceptual and Political Dimensions of Climate-Consistent Finance under the Paris Agreement

Summary

This discussion paper addresses the core challenge of defining "consistency" in financial flows under Article 2.1(c) of the Paris Agreement and understanding pathways to low-emission, climate-resilient development. It proposes a working definition for climate-consistent finance, integrating principles of equity and national circumstances, to guide future assessments. The paper contributes to an ongoing research project aimed at developing a method to evaluate countries' progress in aligning financial flows with climate goals.

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