Baku (TDI): Multilateral Development Banks (MDBs) on Tuesday announced a significant boost in climate financing for low and middle-income countries through a joint statement at COP29 in Baku.
MDBs committed that by 2030, their yearly collective climate financing will touch the $120 billion mark. Of the total allocation, MDBs aim to mobilize $65 billion from the private sector, according to a press release from the Asian Development Bank (ADB).
“For high-income countries, this annual collective climate financing is projected to reach $50 billion, including $7 billion for adaptation, and MDBs aim to mobilize $65 billion from the private sector,” the ADB said quoting the MDBs statement.
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It noted that MDBs had exceeded their 2025 climate finance projections set in 2019, with a 25% increase in direct climate finance and mobilization for climate efforts doubling over the past year.
“While the scale of MDBs’ financial commitments is essential, MDBs’ most significant impact comes from our ability to drive transformative change,” the statement said.
“As emphasized by the Group of Heads of MDBs in the recent Viewpoint Note: MDBs Working as a System for Impact and Scale, we MDBs are focused on amplifying our catalytic effect by enhancing the results and impact of our financing, deepening engagement with countries through platforms, supporting clients’ climate ambitions, and increasing private sector mobilization.”
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“Rallying to the call for urgent climate action, MDBs recognize the central importance of establishing a New Collective Quantified Goal on Climate Finance (NCQG) at COP29 in Baku. A robust and ambitious NCQG is essential for achieving the goals of the Paris Agreement, and we urge Parties to reach a strong conclusion on this objective,” the statement added.
The joint statement comes from the African Development Bank Group, the Asian Development Bank, the Asian Infrastructure Investment Bank, the Council of Europe Development Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the Inter-American Development Bank, the Islamic Development Bank, the New Development Bank, and the World Bank Group.
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