A group of leading multilateral development banks (MDBs) have shared an estimate of their annual collective financing for low- and middle-income countries at COP29 in Baku.
The annual collective climate financing contributions from the group of MDBs is set to cumulatively reach $120 billion by 2030 for low- and middle-income countries, including $42 billion for adaptation, while the MDBs are also aiming to collectively mobilise around $65 billion annually from the private sector.
For high-income countries, meanwhile this annual collective climate financing is projected to reach $50 billion, including $7 billion for adaption. Again, the MDBs aim to mobilise around $65 billion from the private sector.
Multilateral development banks
MDBs involved in the process include 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.
‘While the scale of MDBs’ financial commitments is essential, MDBs’ most significant impact comes from our ability to drive transformative change,’ a statement from the MDBs put it.
‘We MDBs are focused on amplifying our catalytic effect by enhancing the results and impact of our financing, deepening engagement with countries through platforms, supporting clients’ climate ambitions, and increasing private sector mobilisation.’
‘A clear gap’
The estimates were presented during a high-level meeting in Baku hosted by COP29 President Mukhtar Babayev, at which he noted that while MDBs have exceeded their 2025 climate finance projections set in 2019, but there is still more to do.
“Every contribution is welcome, but there is still a clear gap between where we are and where we need to be,” Babayev commented. “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.”
Elsewhere at COP29, the Fund for Loss and Damage achieved operational readiness with the signing of key documents by Board of the Fund for responding to Loss and Damage and the World Bank, as well as the Host Country Agreement between the Fund Board and the Fund Board’s host country, the Philippines.
With over $720 million in pledges, the Fund is set to begin project financing by 2025, marking a milestone in aiding communities most impacted by climate change.
The COP29 Presidency also unveiled a new high-level annual dialogue on coordination and complementarity for funding arrangements responding to loss and damage that will bring together stakeholders from within and outside of the UNFCCC process. Read more here and here. [Photo: UN Climate Change]
