Multilateral Development Banks deliver USD 24 billion in climate change financing
- Date: 19 September 2014
Six leading Multilateral Development Banks (MDBs) have provided almost USD 24 billion worldwide in financing in 2013 for projects in developing and emerging economies that address the challenges of climate change according to the third annual joint MDB report on climate finance. The report, released today, demonstrates the shared engagement expressed by the six MDBs last week to reinforce transparency of their financing in climate change mitigation and adaptation.
The report was prepared by the African Development Bank (AfDB), the Asian Development Bank (ADB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the Inter-American Development Bank (IDB) and the World Bank Group (WBG).
The new report analyses the financial commitments from the institutions to support climate change mitigation and adaptation, and the information provided has been expanded to include both a more detailed sector based breakdown and a split between public and private operations, as well as a regional breakdown of MDB financing.
“Global cooperation is essential for effective and efficient climate finance. The European Investment Bank, as chair of the multilateral development bank group, is pleased to demonstrate its own commitment to climate action around the world and to highlight the valuable contribution made by all partners. The United Nations climate summit in the coming days will focus global attention both on challenges ahead and work already underway to reduce emissions and better adapt to a changing climate.” said Jonathan Taylor, European Investment Bank Vice President responsible for climate action.
From the total USD 24 billion in climate finance provided in 2013, 80%, or USD 19 billion, was dedicated to mitigation and 20%, or nearly USD 5 billion, to adaptation. Of the total commitments, 9%, or USD 2 billion came from external resources, such as bilateral or multilateral donors.
The regional coverage for 2013 is quite balanced with two regions (East Asia and Pacific, Non-EU Europe and Central Asia) each receiving roughly 20% of total climate finance provided, and four regions (South Asia, Sub-Saharan Africa, Latin America and Caribbean, EU New Member States) 10-15% each.
Concerning investment in different sectors, 22% of adaptation finance supported to “Coastal and riverine infrastructure (including built flood protection infrastructure)” and 30% to the category comprising “Energy, transport, and other built environment and infrastructure”. In mitigation finance, renewable energy still takes by far the largest share, with 25% of the total.
The MDBs believe that setting meaningful targets and identifying opportunities for climate finance requires consistent and robust data. This report is therefore based on the common climate finance tracking methodology that MDBs have developed. We will continue reaching out to other interested actors, as we have done throughout this year and in earlier years, to share knowledge and experience on climate finance tracking. We believe our experiences in developing and reporting using our joint approach will pave the way for continued partnership with other financial institutions, including the members of the International Development Finance Club (IDFC), UNFCCC, and others, and we will continue to work closely with them.