MDBs aim for USD 170bn annual climate finance by 2030

Multilateral development banks (MDBs) estimate that their annual collective climate financing will reach USD 170 billion (EUR 160.1bn) by 2030.

The estimate was provided in a joint statement issued by the institutions at COP29 in Baku. It includes USD 120 billion for low- and middle-income countries, of which USD 42 billion for adaptation, and USD 50 billion for high-income countries, of which USD 7 billion for adaptation. In addition, the MDBs aim to mobilise USD 65 billion annually from the private sector for each group of countries.

MDBs have surpassed their 2025 climate finance targets set in 2019, with a 25% increase in direct climate funding and a doubling in mobilisation for climate efforts over the past year, according to their latest Joint MDB Climate Finance Report. In 2023, MDBs committed USD 74.7 billion to low-income and middle-income economies and USD 50.3 billion was allocated to high-income economies.

The projection involves the Asian Development Bank (ADB), the World Bank Group, the African Development Bank (AfDB), the Asian Infrastructure Investment Bank (AIIB), the Council of Europe Development Bank (CEB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the Inter-American Development Bank Group (IDB), the Islamic Development Bank (IsDB) and New Development Bank.

“Every contribution is welcome, but there is still a clear gap between where we are and where we need to be. We are working closely with the shareholders of international financial institutions at COP29 as we seek to build the foundations of a fair and ambitious new climate finance goal,” said COP29 President Mukhtar Babayev.

The COP29 Presidency also said that the Fund for responding to Loss and Damage is now ready to accept contributions after the signing of key documents and is expected to start financing projects in 2025.

Sweden committed USD 19 million to the Fund, taking the total pledged funding to more than USD 720 million. Agreed at COP27, the Fund aims to support countries that are especially vulnerable to the impacts of climate change.

(USD 1 = EUR 0.942)

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