International institutions such as the World Bank, and region-specific banks such as the Asian and African development banks, released a joint statement vowing to scale up their climate financing as the first day of the COP21 conference in Paris draws to a close.
The statement read: “As a coalition of development banks, committed to common goals, we have a responsibility to respond to these global threats. We will continue to consider climate change across our strategies, programmes and operations to deliver more sustainable results, with a particular focus on the poor and most vulnerable.”
The statement’s six signatories agreed to increase their climate finance in accordance with each of the organisation’s “mandates and resources”.
The World Bank has pledged a one-third boost in its climate financing, contingent on the support of its governors, to 28% of its annual commitments by 2020. Of today’s financial capacity, that means $16bn per year in public finance.
The bank also intends to continue leveraging its current levels of co-financing, which could mean a further $13bn a year in 2020. The direct and leveraged co-financing together represent around $29bn per year.
The European Investment Bank has committed to fund $20bn a year globally for the next five years, equal to about 25% of its overall lending for the period. It plans to increase its financing for developing countries to about 35% of total lending by 2020.
The European Bank for Reconstruction and Development will increase its climate financing from 25% to 40% of annual commitments by 2020, amounting to around $20bn over the next five years.
The EBRD separately announced today that it will be providing Egypt’s solar power programme a $500m boost.
The African and Asian development banks have pledged $5bn and $6bn annually by 2020 respectively. That is a three-fold increase for the AfDB and a doubling for the ADB, which has earmarked $4bn of its funding for mitigation and $2bn for adaptation.
All of the banks have also committed to increasing their leveraging of financing from other sources, to work with the private sector, increase client’s access to concessional resources such as the Green Climate Fund and report on their climate finance and co-finance flows in a coordinated, transparent and robust manner.
“We use our global reach, technical expertise and local knowledge to tackle climate change at all levels – from policy through operations. We also have the convening power to bring many actors to work with our public and private sector clients,” the statement added.
“We are committed to providing the best solutions for our clients and the world’s poorest. With our member countries in the lead, we will respond ambitiously to this great challenge,” it concluded.
