By Obinna Uballa
Multilateral development banks (MDBs) are preparing to expand climate financing commitments at COP30 in Belém, Brazil, building on a record $137 billion deployed in 2024, according to the Joint Report on Multilateral Development Banks’ Climate Finance made available to New Diplomat on Wednesday.
The report, coordinated by the European Investment Bank (EIB) with contributions from the African Development Bank Group (AfDB) and other MDBs, shows a 10 percent increase in climate finance last year compared with 2023.
Of the total, more than $85 billion was channelled to low- and middle-income economies, a 14 percent rise that has more than doubled over the past five years.
The expansion drive comes as global negotiations turn toward scaling climate finance to at least $1.3 trillion annually from public and private sources by 2035, a pledge agreed at COP29 in Baku last year.
The latest findings are expected to guide talks in Brazil this November, with MDBs under pressure to play a leading role in bridging funding gaps for developing nations.
In addition to direct financing, MDBs mobilised $134 billion in private investment for climate action in 2024, a 33 percent jump from the previous year, the report said. Of this, $33 billion went to developing economies while $101 billion supported projects in high-income countries.
“Africa is pushing the pedal on actions that transform its green potential in energy, nature-based solutions, innovation and a vibrant workforce,” said Anthony Nyong, AfDB’s Director for Climate Change and Green Growth. “At the African Development Bank, over half of our climate finance goes into helping countries build resilience, protect livelihoods and secure a climate-resilient future.”
Breakdown of 2024 climate finance
Low- and middle-income economies: $85.1 billion, with $58.8 billion (69%) for mitigation and $26.3 billion (31%) for adaptation.
High-income economies: $51.5 billion, with $46.5 billion (90%) for mitigation and $5 billion (10%) for adaptation.
The 2024 report draws on data from the AfDB, World Bank, Asian Development Bank, Inter-American Development Bank, Islamic Development Bank, and other institutions. MDBs also pledged to improve transparency by rolling out new digital tools to make climate finance data more accessible and user-friendly.
