“It is essential that any attempts to align with the Paris Agreement are truly ambitious and do not undermine the 1.5°C goal. There is no room for gas in 1.5°C pathway” says Andri Prasetiyo, Trend Asia, Indonesia.
As the MDBs prepares their Paris Agreement alignment strategies for COP27, it is all the more urgent that fossil gas and liquefied natural gas (LNG) must be ruled out for the energy transition. New data shows that between 2019 and 2021 61% of known direct international MDB public finance for fossil fuels flowed to fossil gas projects. LNG is imported fossil gas and produces significant carbon emissions, as well as toxic air pollution. This energy model has also created significant energy insecurity as LNG is traded to the highest bidder, causing price volatility.
To align with the Paris Agreement MDBs must align all financing and activities — including indirect financing through financial intermediaries, policy based lending and technical assistance — with a pathway that limits warming to 1.5°C, prevents social and environmental harms, and ensures meaningful consultation with impacted communities, including considerations for gender equality.