Multilateral development banks (MDBs) have announced plans to increase climate financing efforts at the COP29 summit in Baku. By 2030, MDBs aim to provide USD 120 billion annually for low- and middle-income countries, with USD 42 billion allocated for adaptation. Additionally, they plan to mobilize USD 65 billion from the private sector.
For high-income countries, MDBs project annual climate financing of USD 50 billion, including USD 7 billion for adaptation, while also aiming to mobilize an additional USD 65 billion from private sources.
The MDBs reported a significant increase in their climate finance commitments compared to projections set in 2019. There has been a 25% rise 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," stated the group. They emphasized their focus on enhancing the results and impact of their financing and increasing private sector involvement.
The statement highlighted 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," it said.
To ensure quality and systemic impact informed by climate results, MDBs released an update on indicators through their Common Approach to Measuring Climate Results framework. This shared framework aims to define and measure global progress on climate mitigation and adaptation linked with MDB activities.
Additionally, MDBs published their Country Platforms for Climate Action document, reaffirming support for collaboration between host countries, donors, and private sectors. They plan to build new platforms based on country demand while collaborating with partners like the International Monetary Fund.
The statement was issued by several major development banks including the African Development Bank Group, Asian Development Bank, European Investment Bank, Inter-American Development Bank, World Bank Group among others.