London, 9 September (Argus) — Multilateral development banks (MDBs) provided $137bn in climate finance in 2024, a record high and an increase of 9.6pc on the year, a report led by the European Investment Bank (EIB) found today.
In addition, the MDBs mobilised $134bn in private finance for climate investments last year, an increase of a third compared with 2023.
The report combines data from the African Development Bank, the Asian Development Bank, the Asian Infrastructure Investment Bank, the Council of Europe Development Bank, the EBRD, the EIB, the Inter-American Development Bank Group, the Islamic Development Bank, the New Development Bank and the World Bank Group.
The MDBs delivered $85.1bn in climate finance to low- and middle-income countries in 2024, up by 13.9pc on the year. Of this, $58.8bn, or 69pc, went to mitigation, and the remainder to adaptation. Mitigation refers to cutting emissions, and adaptation to adjusting to the effects of climate change where possible.
The banks provided $51.5bn in climate finance for high-income countries in 2024, of which 90pc, or $46.5bn, was for mitigation. The remainder supported adaptation, according to the report.
The gap between the private finance mobilised for climate in low- and middle-income and in high-income economies remained wide. The MDBs drove $33bn in private finance for the former, but $101bn for the latter, illustrating the challenge developing economies face to draw in private-sector investment. Private finance mobilised for low- and middle-income countries rose by 15.7pc over 2023-24, while it increased by 38.9pc for wealthy nations, the report shows.
Climate finance dominated the UN Cop 29 climate conference in November last year. Countries had to decide on the next stage of a climate finance goal, and almost 200 nations agreed that developed countries would deliver $/yr in climate finance to developing nations by 2035. The topic will resurface at this year’s Cop 30 in Brazil in November, with a “roadmap” due to be presented, charting a path to scaling up global climate finance “from all sources” to $1.3 /yr by the same date.
The African Group of Negotiators last week called for a new climate finance goal to be agreed at Cop 30 “of $1.3 trillion by 2035… to replace the $100bn commitment”. The $100bn refers to the previous climate finance goal, which countries agreed would be delivered annually by developed nations over 2020-25. But the group’s statement does not acknowledge the $/yr agreed at Cop 29, a formalised — though unenforceable — commitment.
By Georgia Gratton
