Report: MDB climate finance to low, middle income economies hit record of $60 bn

12 / 10 / 2023

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• Sustainable Development

The multilateral development banks (MDB) climate finance to low and middle-income economies hit a record of $ 60 billion in 2022, according to the 2022 Joint Report on Multilateral Development Banks Climate Finance.

Of this total sum, $38.0 billion, or 63% of this total, was for climate change mitigation finance and $22.7 billion or 37% for climate change adaptation finance. The amount of mobilized private finance stood at $16.9 billion.

In 2022, $38.8 billion was allocated for high-income economies. Of this total, $36.3 billion or 94% was for climate change mitigation finance, and $2.5 billion or 6% was for climate change adaptation finance. The amount of mobilized private finance stood at $51.9 billion.

With the record 2022 climate finance volumes, MDBs are surpassing for the second year in a row the 2025 climate finance targets they set themselves at the UN Secretary General’s Climate Action Summit in 2019. This included delivering an expected collective total of $50 billion in climate finance for low-income and middle-income economies, at least $65 billion of climate finance globally, with an expected doubling in adaptation finance to $18 billion; and private mobilization of $40 billion. Compared to 2019 volumes, MDB 2022 climate finance for low and middle-income economies increased by 46% (2019, $41.5 billion) and global MDB climate finance by 62% (2019, $61.6 billion).

“The urgent need to scale up climate finance is at the heart of the call for multilateral development banks to do more in tackling the climate emergency. With nearly $100 billion of climate finance worldwide, including a significant increase for low and middle-income countries, the report shows that MDBs are delivering on their commitments and are doing so ahead of schedule. But we must do more and as the EU climate bank we are ready to step up. The EIB is working with our fellow MDBs and the COP28 Presidency on how to mobilize more private finance and accelerate support for countries and the private sector to meet the Paris climate goals,” said EIB Vice-President Ambroise Fayolle.

The EIB delivered record volumes of $32.9 billion of climate finance in high-income economies and $4.2 billion for low and middle-income economies through its specialized development arm EIB Global. EIB-mobilized global private finance stood at $46.6 billion.