Multilateral development banks (MDBs) have announced plans to significantly increase climate financing by 2030. At COP29 in Baku, they revealed that their collective annual climate financing for low- and middle-income countries is expected to reach USD 120 billion, with USD 42 billion earmarked for adaptation efforts. They also aim to mobilize an additional USD 65 billion from the private sector.
For high-income countries, MDBs project an annual climate financing of USD 50 billion, including USD 7 billion for adaptation. The goal is to further mobilize another USD 65 billion from private investments.
The MDBs have already surpassed their ambitious 2025 climate finance targets set in 2019. There has been a notable increase of 25% in direct climate finance and a doubling of mobilization efforts over the past year.
“While the scale of MDBs' financial commitments is essential, MDBs’ most significant impact comes from our ability to drive transformative change,” the statement noted. The Group of Heads of MDBs emphasized their focus on amplifying catalytic effects by enhancing results and impact, deepening engagement with countries through platforms, supporting clients’ climate ambitions, and increasing private sector mobilization.
MDBs stressed the importance of establishing a New Collective Quantified Goal on Climate Finance (NCQG) at COP29. “A robust and ambitious NCQG is essential for achieving the goals of the Paris Agreement, and we urge Parties to reach a strong conclusion on this objective,” they stated.
To ensure quality and systemic impact informed by climate results, MDBs released the Common Approach to Measuring Climate Results: Update on Indicators in April. This framework aims to define, measure, and link global progress on climate mitigation and adaptation with MDB activities' outcomes.
Additionally, MDBs published their Country Platforms for Climate Action - Statement of Common Understanding and Way Forward. This document reaffirms joint support for collaboration between host countries, MDBs, donors, and the private sector. Based on demand from countries, new platforms will be launched while existing collaborations are deepened with partners like the International Monetary Fund.
The statement was collectively issued by several organizations: African Development Bank Group, Asian Development Bank, Asian Infrastructure Investment Bank, Council of Europe Development Bank, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank, Islamic Development Bank, New Development Bank, and World Bank Group.