With investments worldwide, MDBs have doubled the amount of resources for climate change adaptation and mitigation actions. Almost 60% of the funds were allocated to small and middle-income countries. Expanding funding to tackle these global challenges is on the agenda of G20 Brasil.
Multilateral Development Banks (MDBs) financed 125 billion dollars in climate actions worldwide in 2023. Almost 60% of the funds, or 74.7 billion dollars, were allocated to developing economies. Increasing investments to mitigate and adapt to climate change was one of the priority themes at the Finance Track of the G20 Brasil.
The Joint Report on Climate Finance of the Multilateral Development Banks released on September 20 also reveals that the amount of private financing mobilized for this group of countries was 28.3 billion dollars. The announcement is part of the preparation for COP 29 (United Nations Climate Change Conference), which will take place in Azerbaijan in November 2024. One of the main expected results is the increase in funding and the establishment of a new collective goal for climate finance.
"The IDB is committed to tripling its climate finance over the next decade and offering diverse innovative financial instruments to accelerate climate action in the region. The MDBs will jointly report on climate finance towards a new collective goal for climate finance," said IDB President Ilan Goldfajn.
In the same year, 50.3 billion dollars were allocated to high-income economies. 47.3 billion dollars, or 94% of this amount, went to climate change mitigation, and the remaining 3 billion dollars, or 6%, went to climate change adaptation. The amount of private funding allocated to high-income countries was 72.7 billion dollars.
More actions on climate change
In April, leaders announced that they would work together in 2024 as a system to increase the impact and scale of investments, focusing on climate action, developing a common approach to measure climate results, and supporting countries in developing national platforms, among others.
The document is an annual collaboration between 10 institutions and aims to monitor progress towards their common climate finance objectives in accordance with the Paris Agreement.
The information combines data from 10 MDBs: European Investment Bank (EIB), African Development Bank (AfDB), Asian Development Bank (AfDB), Asian Infrastructure Investment Bank (AIIB), Council of Europe Development Bank (CEB), European Bank for Reconstruction and Development (EBRD), Inter-American Development Bank (IDB), Islamic Development Bank (IDB), New Development Bank (NDB) and the World Bank (WB).
