A group of Multilateral development Banks (MDBs) are projecting that the annual climate finance for low- and middle-income countries will cumulatively reach $120 billion by 2030, including $42 billion for adaptation, they said at the ongoing COP29 Conference.
- For high-income countries, this annual collective climate financing is projected to reach USD $50 billion, including $7 billion for adaption, and the MDBs aim to mobilise $65 billion from the private sector.
- MDBs have exceeded their 2025 climate finance projections set in 2019, with a 25% increase in direct climate finance and mobilisation for climate efforts doubling over the past year.
- The estimates encompass lenders including the African Development Bank (AfDB), the Asian Development Bank (ADB), the World Bank Group, , the Asian Infrastructure Investment Bank (AIIB), the Council of Europe Development Bank (CEB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the Inter-American Development Bank Group (IDB), the Islamic Development Bank (IsDB) and New Development Bank.
“Every contribution is welcome, but there is still a clear gap between where we are and where we need to be. We are working closely with the shareholders of international financial institutions at COP29 as we seek to build the foundations of a fair and ambitious new climate finance goal,” said the COP29 President Mukhtar Babayev while commenting on the estimates during a high-level meeting in Baku, Azerbaijan.
“We must deliver what the world expects, including climate financing that is several multiples beyond existing arrangements, adequate to the scale and urgency of the problem. As a Presidency, we are committed to ensuring that Party and non-Party stakeholders have spaces available to discuss and progress such means of implementation,” he added during the UN Conference, which will run from 11-22 November.
He was joined by Heads of States and Governments as well as senior executives from the lenders and other major financial organisations, including the International Monetary Fund (IMF).
One of the key pillars of the COP29 Presidency’s plan – enabling action – involves putting in place the financing necessary to support urgent climate action. Throughout the year, the COP29 Presidency has been supporting the full operationalisation of the Fund for responding to Loss and Damage so that it can begin disbursing much needed and long-awaited funds as soon as possible.
