Multilateral development banks hit record US$137B in climate financing last year

Sep 11, 2025 News

Kaieteur News – Global climate financing by multilateral development banks (MDBs) increased 10% last year, reaching a record US$137 billion, with the majority directed to low- and middle-income economies.

MDBs, including the Inter-American Development Bank Group (IDB Group), announced the year-on-year increase in a report published on Tuesday.

In addition, private financing mobilized by MDBs to fight global warming reached US$134 billion in 2024, a 33% increase from the previous year, according to the new report. The latest climate finance data from MDBs will inform preparations for the Climate Change Conference (COP30) in Belém, Brazil, in November 2025, where expanding climate financing will be a central theme.

Climate financing is central to the efforts of MDBs to advance sustainable development worldwide. By supporting investments in renewable energy, green cities, clean transport, water and food security, MDBs help countries move closer to achieving their sustainable development goals.

This year, MDBs are advancing a digitalization initiative aimed at improving transparency and making their joint climate-finance data more accessible and user-friendly. They plan to present progress on this project at COP30. As part of the transition, the 2024 Joint MDB Climate Finance Report is being released as a summary infographic, highlighting key results for the year. Starting in the fourth quarter of 2025, detailed data will be available through an interactive web platform, giving stakeholders real-time access to climate finance information and enabling them to track MDBs’ collective progress towards their climate finance goals.

Last year, US$85.1 billion of MDBs’ climate financing were for low- and middle-income economies. Climate financing in these countries has more than doubled over the past five years and increased 14% on the year. Of this sum, 69% – or US$58.8 billion – went to climate-change mitigation and US$26.3 billion, or 31%, for climate-change adaptation. The amount of mobilized private financing for climate investments in these countries stood at US$33 billion.

In 2024, MDBs’ climate financing for high-income countries totaled US$51.5 billion, of which US$46.5 billion (90%) supported climate change mitigation and US$5 billion (10%) supported adaptation. In addition, mobilized private financing for climate investments in high-income countries reached $101 billion. In a clear shift toward strengthening climate resilience and adaptation in Latin America and the Caribbean, the IDB Group has ramped up its adaptation financing to US$2.2 billion – boosting adaptation’s share of total climate lending to 33%.

MDB Climate Finance

At COP29 in Baku, MDBs set out financial commitments to help countries achieve ambitious climate results. By 2030, they pledged to provide US$120 billion annually in collective climate financing for low- and middle-income countries, including US$42 billion for adaptation, while mobilizing an additional US$65 billion a year from the private sector. For high-income countries, MDBs project US$50 billion a year in climate financing by 2030, including US$7 billion for adaptation, alongside a further US$65 billion in mobilized private financing.

The 2024 multilateral development bank climate finance reporting is coordinated and prepared for publishing by the EIB, with assistance from the European Bank for Reconstruction and Development (EBRD), and combines data from the African Development Bank (AfDB), the Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB), the Council of Europe Development Bank (CEB), the EBRD, the EIB, the IDB Group, the Islamic Development Bank (IsDB), the New Development Bank (NDB), and the World Bank Group (WBG).

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

climate financing, IDB Group, MDBs, multilateral development banks

Latest News