At the World Leaders Climate Action Summit during COP29 in Baku, Azerbaijan, leading multilateral development banks (MDBs) shared their financing estimates. These banks have committed to providing $120 billion annually by 2030.
This funding will support climate projects in low- and middle-income countries. Of this, $42 billion will focus on adaptation efforts.
In addition to the direct financing from MDBs, they also aim to mobilize $65 billion annually from the private sector. This collaborative effort will further accelerate climate action in these vulnerable countries.
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Climate Finance for High-Income Countries
For high-income countries, the MDBs’ collective climate financing goal is set at $50 billion annually by 2030. Of this, $7 billion will go towards adaptation. The MDBs also plan to mobilize $65 billion annually from private sector investments in these regions as well.
Key MDBs Leading the Charge
The financing estimates were provided by a group of major international lenders. These include the Asian Development Bank (ADB), the World Bank Group, the African Development Bank (AfDB), and others. Also included are the Asian Infrastructure Investment Bank (AIIB), the European Bank for Reconstruction and Development (EBRD), and the Inter-American Development Bank Group (IDB). Together, these institutions will play a crucial role in supporting global climate action.
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Progress Beyond Projections
The MDBs have already exceeded their climate finance projections for 2025, which were set in 2019. Over the past year, direct climate finance has increased by 25%, and mobilization efforts have doubled. This shows the growing commitment from these institutions to support urgent climate action worldwide.
COP29 Presidency’s Role in Financing
The financing estimates were presented at a high-level meeting in Baku, hosted by COP29 President Mukhtar Babayev. Heads of state, government leaders, and senior officials from major financial organizations, including the IMF, attended the meeting.
The COP29 Presidency emphasizes that securing sufficient financing is central to their plan for tackling the climate crisis. The MDBs’ commitment to climate finance is crucial for addressing the urgent need for global action.
Mukhtar Babayev said, “Every contribution is welcome, but there is still a clear gap between where we are and where we need to be. 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.”
He continued, “We must deliver what the world expects, including climate financing that is several multiples beyond existing arrangements, adequate to the scale and urgency of the problem. As a Presidency, we are committed to ensuring that Party and non-Party stakeholders have spaces available to discuss and progress such means of implementation.”