MDBs Deliver Record $137B Climate Finance, Boosting Global Action Before COP30

Multilateral development banks (MDBs) provided a record $137 billion in climate finance in 2024, according to the 2024 Joint Report on Multilateral Development Banks' Climate Finance, released today by the European Investment Bank (EIB) in collaboration with nine other MDBs, including the African Development Bank Group (AfDB). This marks a 10 percent increase compared to 2023 and reflects the accelerating global momentum to finance climate action.

In addition, MDBs mobilized a further $134 billion in private sector finance, a 33 percent jump from the previous year, bringing the total combined climate investment linked to MDBs to $271 billion.

Scaling Up Ahead of COP30 in Brazil

The findings come at a critical moment for international climate diplomacy. At COP29 in Baku last year, countries pledged to scale up climate support for developing economies to at least $1.3 trillion annually by 2035, sourced from both public and private sectors. These commitments will be at the forefront of negotiations at COP30 in Belém, Brazil, in November 2025, where MDBs are expected to play a key role in bridging the financing gap.

“The scale and urgency of the climate crisis require unprecedented mobilization,” said Anthony Nyong, AfDB’s Director for Climate Change and Green Growth. “Africa is pushing the pedal on actions that transform the continent’s green potential in energy, nature-based solutions, innovation, and workforce development. And we are putting climate adaptation at the heart of this effort.”

Nyong stressed that more than half of AfDB’s climate finance supports adaptation projects—from protecting livelihoods and food security to strengthening resilience against extreme weather. “We continuously meet our climate finance annual targets,” he said. “This is about building a climate-resilient future while investing in a greener economy.”

Key Findings: Where the Money Goes

The report provides detailed insights into how MDB climate finance is distributed:

Low- and Middle-Income Economies

• Received $85.1 billion, a 14% increase from 2023.

• Funding more than doubled over the past five years.

• $58.8 billion (69%) went to climate mitigation, including renewable energy, energy efficiency, and sustainable transport.

• $26.3 billion (31%) targeted climate adaptation, including water resilience, food security, and disaster risk reduction.

• MDBs mobilized $33 billion in private finance in these economies.

High-Income Economies

• Received $51.5 billion in MDB climate finance.

• $46.5 billion (90%) focused on mitigation, such as decarbonization projects.

• $5 billion (10%) supported adaptation measures.

• Mobilized $101 billion in private sector climate investment.

Institutional Cooperation and Transparency

The 2024 Climate Finance Report brings together data from a wide coalition of MDBs: the EIB, AfDB, Asian Development Bank, Asian Infrastructure Investment Bank, Council of Europe Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank Group, Islamic Development Bank, New Development Bank, and the World Bank Group.

The report also highlights MDBs’ efforts to improve transparency and accountability, including a new digitalization initiative that will make climate finance data more accessible, timely, and user-friendly. This step is designed to enhance trust and coordination with national governments, civil society, and the private sector.

The Bigger Picture: Finance Gaps and Opportunities

Despite the record levels, MDB leaders caution that climate finance still falls short of what is needed to meet the Paris Agreement and SDG targets. The global climate finance gap is estimated in the trillions annually, and urgent scaling up is required to close it.

The report underscores that relatively small reallocations of global capital could have outsized impacts. For example:

• Reinvesting just a fraction of global subsidies for fossil fuels could unlock large-scale clean energy deployment.

• Expanding adaptation finance is critical, particularly in Africa and small island developing states, where vulnerability to climate impacts is highest.

Looking Ahead to COP30

With COP30 set in the Amazon city of Belém, expectations are high that climate finance will be at the center of negotiations. MDBs are expected to align investment flows more strongly with the 1.5°C pathway, scale up blended finance, and ensure that adaptation finance reaches those most in need.

“The world has the tools, the resources, and the knowledge,” Nyong emphasized. “What is needed now is the collective political will and investment to turn commitments into action.”