Climate financing by seven of the world’s largest multilateral development banks (MDBs), including African Development Bank (AfDB), totalled $61.6 billion in 2019, of which $41.5 billion (67 per cent) was in low-and middle-income economies, according to the 2019 Joint Report on Multilateral Development Banks’ Climate Finance.
The report shows that $46.6 billion, or 76 per cenof total financing for the year was devoted to climate change mitigation investments that aim to reduce harmful greenhouse gas emissions and slow down global warming. Of this, 59 per cent went to low-and middleincome economies. The remaining $15 billion, or 24 per cent, was invested in adaptation efforts to help countries build resilience to the mounting impacts of climate change, including worsening droughts, extreme flooding and rising sea levels.
Ninety-three per cent of this finance was directed at low-and middle-income economies. In addition, the MDBs, last year, reported a further $102.7 billion in net climate co-finance – investments from the public and private sector, taking the total of climate activity financed in the year to $164.3 billion.
Additional climate funds channelled through MDBs, such as the Climate Investment Funds (CIF), the Global Environment Facility (GEF) Trust Fund, the Global Energy Efficiency and Renewable Energy Fund (GEEREF), the European Union’s funds for Climate Action, and the Green Climate Fund (GCF), play an important role in boosting MDB climate financing. The MDBs have reported on climate finance since 2011, based on a jointly developed methodology for climate finance tracking.