| Paris alignment | Reasoning |
|---|---|
| TBC | FMO is in the process of establishing a framework for strategic customer engagement that considers country contexts through the Investment-level Paris alignment and Just & Inclusive Transition workstreams, although it presently lacks specific country strategies. Once these and other relevant documents are published, E3G will update the assessment of this metric accordingly. |
Country level strategies and approach
FMO engages globally with customers primarily in the private sector. Currently the Bank does not have any specific country strategies in relation to their Climate Action or Paris alignment and Just and Inclusive transition efforts. Despite this, FMO recognises that every country has a different context and that this will influence the determination of their climate ambitions. E3G understands that for private-finance Development Financial Institutions (DFIs) such as FMO (that do not have a parent public DFI) capacities can represent a challenging barrier when it comes to formulating country strategies.
FMO is currently determining the approach which will guide the workstreams for Investment-level Paris alignment and Just and Inclusive Transition. Pending the finalisation of these processes E3G will update this section accordingly.
Recommendations:
- Although FMO does not presently directly engage with countries themselves, the Bank should nonetheless develop country-level strategies and/or guidance, to guide their engagement with customers. This will enable the Bank to situate its investments in a way that is sensitive to country-contexts (particularly regulatory, economic, and political aspects). To ensure active complementarity with the development priorities and pathways of host countries, this should be expected to involve some level of engagement with governments.
- To have more strategic orientation on their country level operations, FMO should actively seek to engage with PDBs for any given country where there is overlap with FMO’s operations, in line with a country platform approach. This will allow the Bank to leverage the existing expertise and knowledge on country contexts to provide valuable contextual input for designing operations. As an example, FMO could make use of World Bank’s Country Climate and Development Reports (CCDRs).