Development bank climate finance reaches $61.6bn in 2019

7 Aug 20

The world’s largest multilateral development banks committed $61.6bn of climate finance in 2019, a joint report has shown.

 

Most of this ($41.5bn – or 67%) went to low and middle-income economies, but this was marginally ($1.5bn) less than in 2018.

The report combines data from the Asian Development Bank (ADB), the African Development Bank (AfDB), the European Bank for Reconstruction and Development, the European Investment Bank, the Inter-American Development Bank Group, the Islamic Development Bank and the World Bank.

Of these, only AfDB, ADB and EIB increased their climate finance commitments to low and middle-income countries.

Previous reports have only included commitments to these countries, and this is the first time the Islamic Development Bank has been included, so total climate finance figures to all countries are difficult to compare between years.

“The growing flow of multilateral development bank climate finance shows our joint resolve to take on climate change and, in the face of the Covid-19 pandemic, it is more important than ever to ‘build back better’ in a low-carbon and climate resilient way,” said Woochong Um, director general of ADB’s sustainable development and climate change department.

The majority (76%) of the total climate finance was devoted to climate change mitigation, aimed at reducing greenhouse gas emissions and slowing global warming, with the remainder being spent on adaptation efforts, helping countries build resilience to the impacts of climate change such as droughts, flooding, extreme weather events and higher sea levels.

“Multilateral development banks have a key role to play in ensuring a green recovery that is inclusive and aligned with the Paris Agreement,” said Emma Navarro, EIB vice president responsible for climate action and the environment.

“The report shows that our MDB family is on track to meet our commitments to scale up support for climate change mitigation and adaptation projects.”

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