This page is part of the E3G Public Bank Climate Tracker Matrix, our tool to help you assess the Paris alignment of public banks, MDBs and DFIs.
| Paris alignment | Reasoning |
|---|---|
| Paris aligned | The IsDB’s country level engagement has traditionally been structured through dedicated “Member Country Partnership Strategies”. Since 2023, these have been complemented by three-year “Country Engagement Frameworks” rolled out across member countries. The Bank has developed an internal guidance note on Paris Agreement alignment during the country planning phase. This note serves as a comprehensive reference tool to ensure that country strategies systematically integrate climate considerations and support the development of a pipeline of Paris-aligned operations. It provides extensive detail on the roles and responsibilities of relevant stakeholders and clearly refers to the IsDB’s role as both supporting member countries (MCs) in achieving existing national climate change objectives and raising the level of future ambition. Beyond this strategic approach, there is also evidence of the Bank undertaking cross-cutting analysis of climate action at the country level. |
Country level strategies and approach
The IsDB orients engagement with member countries (MCs) primarily through the Member Country Partnership Strategy (MCPS). As per the Bank’s 2023 Annual Report, the Bank has proactively sought to mainstream and integrate climate change and green growth elements in MCPSs.
In addition, the IsDB has (since 2023) begun introducing a series of Country Engagement Frameworks (CEFs) to outline strategic priorities and sectors for Bank engagement with MCs. CEFs are aligned with countries’ national development plans and the Bank’s own realigned strategy. They offer a shorter-term (2–3 year) alternative to the longer-term (4–6 year) MCPSs, as a more adaptable engagement approach which might suit fragile or transitional contexts, countries where urgent engagement is a priority, and/or serve as a potential prelude to a more comprehensive MCPS based on a substantial pipeline.[1]
As of late 2024, CEFs had been launched for Turkey, Suriname, Guyana, and Pakistan. Additionally, CEFs are currently being developed for Azerbaijan, Mauritania, and Brunei. These frameworks all run for a three-year period covering 2024–2026.
The IsDB has not published standardised guidance regarding the development of effective MCPS and/or CEF and consistent climate mainstreaming. However, an internal guidance note on Paris Agreement alignment at the country planning phase is intended to support regional hubs, country managers, and project teams with ensuring these documents effectively foster a pipeline of aligned operations at the country level.[2] Broadly, this is comprised of three steps:
- Country dialogue through which the IsDB and relevant MC exchange on existing climate commitments and requirements.
- MCPS/CEF preparation through which MC infrastructure and policy priorities (as well as climate-related commitments) are considered as part of defining the strategic pillars and proposed activities of the document.
- MCPS/CEF finalisation where specific climate-related due diligence aspects are integrated to ensure compatibility with national development priorities and planned interventions.
Nationally Determined Contributions (NDCs), Long term Strategies (LTSs), and National Adaptation Plans (NAPs) are frequently referenced throughout in relation to MC climate commitments. Notably, there is specific reference to the IsDB’s mandate to “support MCs in achieving existing national climate change objectives and in raising the level of ambition of future strategies and plans”. This reflects the Bank’s laudable commitment to supporting the iterative increase of climate ambition.
The document provides detailed guidance at each stage of this process and constitutes a comprehensive reference tool for the development of country engagement strategies (e.g. MCPS/CEF) that mainstream climate considerations. It also clearly sets out the roles and responsibilities of relevant stakeholders, productively leverages and suggests applicable resources from across the climate and development ecosystem (including notably the World Bank Group’s Country Climate and Development Reports), and provides an indicative overview of pertinent Paris alignment considerations across key sectors.
The IsDB has also conducted a “Country Assistance Evaluation” for Cote d’Ivoire. This is intended to provide a detailed analysis of the impact of the Bank’s interventions in the country, spanning from 2012–2021. This evaluation will in turn inform the future strategic direction of the Bank’s assistance to Cote d’Ivoire, providing recommendations for both the IsDB and country government to enhance efficacy. Undertaking a thorough evaluation of past country assistance to shape effective forward engagement represents commendable practice. However, as of 2025 the Cote d’Ivoire remains the only public example of such an evaluation having taken place. It is therefore unclear whether this was a one-off evaluation, or if these types of evaluations have or will be conducted for other member countries.
Beyond specific country-level evaluations, the IsDB has also produced cross-cutting research and analysis on climate action at the country-level. For example, in 2020 the Bank partnered with the Partnership on Sustainable, Low Carbon Transport (SLoCaT) to produce research examining policy activities and opportunities relating to climate change and the transport sector across IsDB MCs. In particular, the report makes recommendations to strengthen capacity building on synergies between National Determined Contributions (NDCs) and Voluntary National Reviews (VNRs), enhanced coordination between governmental ministries in MCs, and exchange between member countries to showcase best practices.
Recommendations:
- The IsDB should clarify the process behind deciding and undertaking a country assistance evaluation, to provide an indication of whether this practice will be extended beyond the Cote d’Ivoire (and if so, by what process).
- The IsDB should consider publishing a version of the internal guidance note on Paris Agreement alignment at the country planning phase, to provide greater transparency on its approach to key stakeholders, and as a valuable resource for peer regional institutions considering how to approach this subject.
- The IsDB should consider explicitly integrating a reference to considering the ambition level of country NDCs with respect to a feasible global pathway for achieving 1.5 °C alignment (or if there is scope for supporting with raising ambition in line with this goal), as part of its guidance for Paris Agreement alignment at the country planning phase. Where appropriate to facilitate this assessment in practice, the Bank could collaborate with local research teams and international partners to support the development of long-term, cross-sectoral decarbonisation pathways for each country, which could in turn inform the MCPSs/CEFs, similar to the Inter-American Development Bank’s (IDB) Deep Decarbonisation Pathways programme. Such an approach could strengthen the IsDB’s alignment with countries’ climate goals and help identify key areas for transformative climate investments.
- The IsDB should consider replicating the valuable cross-cutting research and analysis relating to climate change and the transport sector (examining policy activities and opportunities across IsDB MCs) for other key sectors of operations, such as energy, water and sanitation, urban development, and agriculture.
[1] Information received directly from the IsDB.
[2] Information received directly from the IsDB.
Last Update: July 2025