Global climate finance provided by multilateral development banks (MDBs) rose by 10 percent in 2024, reaching a record US $137 billion, with most of the funding directed to low- and middle-income economies. This year-on-year increase was highlighted in a new report released by MDBs, including the European Bank for Reconstruction and Development (EBRD).
In addition to their direct funding, MDBs mobilised US $134 billion in private finance for climate action last year, a 33 percent increase compared to 2023. These figures will play an important role in shaping discussions at the United Nations Climate Change Conference (COP30), which will be held in Belém, Brazil, in November 2025. Expanding climate finance will be one of the central topics at COP30. At the previous conference in Baku, Azerbaijan, in November 2024, countries agreed to scale up funding for developing nations to at least US $1.3 trillion annually from public and private sources by 2035.
Gianpiero Nacci, Managing Director of Climate Strategy and Delivery at the EBRD, emphasized the urgency of these efforts. He said that rapid technological change and today’s turbulent geopolitical environment make climate finance essential, not only to tackle the climate crisis but also to boost economic competitiveness and reduce geopolitical risks. He added that MDBs are collaborating to drive innovation, mobilize investment, and support sustainable growth, with the EBRD playing an active role in helping its regions benefit from this transition.
MDBs are key players in advancing sustainable development globally. By financing renewable energy, clean transport, green cities, and improved water and food security, they support countries in achieving their sustainable development goals. To improve transparency and accessibility, MDBs are advancing a digitalization initiative to make their climate finance data easier to use. They plan to present updates on this initiative at COP30. For now, the 2024 Joint MDB Climate Finance Report is being shared as a summary infographic. Starting in late 2025, detailed data will be available on an interactive web platform, giving stakeholders real-time access to progress on climate finance commitments.
In 2024, US $85.1 billion of MDB climate finance was directed to low- and middle-income economies, marking a 14 percent increase from the previous year and more than double the amount provided five years ago. Of this funding, US\$58.8 billion (69 percent) supported climate change mitigation, while US $26.3 billion (31 percent) supported adaptation efforts. Mobilized private finance for climate investments in these economies reached US $33 billion.
High-income economies received US $51.5 billion in MDB climate finance last year. Of this, US $46.5 billion (90 percent) was allocated to mitigation projects and US $5 billion (10 percent) to adaptation. Mobilized private finance for climate projects in high-income countries totaled US $101 billion.
At COP29 in Baku, MDBs committed to providing US $120 billion annually in climate finance for low- and middle-income countries by 2030, including US $42 billion for adaptation, while mobilizing an additional US $65 billion per year from private sources. For high-income economies, MDBs projected US $50 billion per year in climate finance by 2030, with US $7 billion allocated for adaptation and a further US $65 billion expected from private finance.
The 2024 MDB climate finance report was coordinated and published by the European Investment Bank (EIB) with support from the EBRD. It includes data from multiple institutions: the African Development Bank, Asian Development Bank, Asian Infrastructure Investment Bank, Council of Europe Development Bank, EBRD, EIB, Inter-American Development Bank Group, Islamic Development Bank, New Development Bank, and World Bank Group.
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