The Multilateral Development Banks (MDBs) have taken a significant step towards improving the measurement of climate results. During COP28, they agreed to develop a common approach for measuring climate results, which is intended to complement the tracking of climate finance. While MDBs have made progress in scaling up climate finance commitments, it has been acknowledged that these commitments do not necessarily measure the outcomes or results of climate actions.
The MDB Common Approach to Measuring Climate Results was first published in April 2024. It offers a framework designed to define, measure, and connect global progress on climate mitigation and adaptation with MDB results. This framework aims to provide stakeholders with a clearer understanding of how MDBs are contributing towards the goals set out in the Paris Agreement.
The Common Approach is structured into three levels: global and country context; results from operations; and institutional efforts. This bottom-up approach links MDB finance and broader resources to operational results and global as well as country progress. Understanding this progress helps inform the responses developed by MDBs regarding resource allocation and the creation of new initiatives.
At COP29, an update titled "MDB Common Approach to Measuring Climate Results: Update on Indicators" was released. This note expands upon the initial publication by offering:
- A set of common indicators that MDBs can use to track climate impact related to adaptation, resilience, mitigation, and support for country and client transitions.
- Definitions for each indicator along with metrics used for tracking and summaries of what each indicator captures.
- High-level methodological principles shaping these indicators, including sector structures and result areas guidelines.
This Common Approach is not intended as a new reporting mechanism but rather seeks to enhance collaboration across countries, sectors, MDBs, private sectors, and other stakeholders. The approach will continue evolving through lessons learned from collaboration among MDBs and further dialogue with stakeholders.
By enhancing approaches to measuring climate results, the development community can potentially increase its impact significantly. This enhanced measurement can support more informed risk assessments and create incentives for increased financing from diverse sources aimed at making the planet more sustainable. Additionally, it aids countries in effectively measuring their efforts and identifying policy bottlenecks while also tracking private sector investment opportunities.