Multilateral development banks hit record $137 billion in climate finance

By Monica MUEMA

 

Multilateral development banks (MDBs) delivered a record $137 billion in global climate finance last year—a 10% increase that underscores the growing scale of international climate investment.

 

The majority of this funding flowed to low- and middle-income economies, according to a report published today by the European Investment Bank (EIB) with participation from other MDBs, including the African Development Bank Group (www.AfDB.org).

In addition, MDBs mobilized $134 billion in private finance for climate action in 2024, a 33% increase from the year earlier, according to 2024 Joint Report on Multilateral Development Banks’ Climate Finance.

Expanding climate finance will be a central theme at COP30, which is scheduled to take place in Belém, Brazil in November 2025. At the COP29 summit, held late last year in Baku, countries agreed to scale up support for developing countries to at least $1.3 trillion annually from public and private sources by 2035. The findings are expected to inform discussions during the conference.

“Africa is pushing the pedal on actions that transform Africa’s green potential in energy, nature-based solutions, innovation and a vibrant workforce,” said Anthony Nyong, African Development Bank Director for Climate Change and Green Growth.

“And we are putting climate adaptation at the heart of this effort. At the African Development Bank, we are walking the talk, we continuously meet our climate finance annual target and over half of our climate finance goes to helping African countries build resilience, protect livelihoods, and secure a climate-resilience future, while still investing in greener future,”

Key report findings

Low- and Middle-Income Economies

• Received $85.1 billion in MDB climate finance, representing a 14% year-on-year increase
• Climate finance in these countries more than doubled over the past five years
• $58.8 billion (69%) targeted climate change mitigation, while $26.3 billion (31%) addressed adaptation
• Private finance mobilized for climate investments stood at $33 billion

High-Income Economies

• Received $51.5 billion in MDB climate finance
• $46.5 billion (90%) supported climate change mitigation, with $5 billion (10%) addressing adaptation
• Private finance mobilized for climate investments reached $101 billion

The 2024 Multilateral Development Bank Climate Finance Report was prepared by the EIB with assistance from the European Bank for Reconstruction and Development.

 

It combines data from both institutions as well as from the African Development Bank Group, the Asian Development Bank, the Asian Infrastructure Investment Bank, the Council of Europe Development Bank, the Inter-American Development Bank Group, the Islamic Development Bank, the New Development Bank and the World Bank Group.

The report comes as MDBs are taking steps to increase the transparency of their climate financing through digitalization initiative that will make their data more accessible and user-friendly.