MDB Climate Finance Hit Record High Of USD 43.1 Billion In 2018
Climate financing by the world’s largest multilateral development banks in developing countries and emerging economies rose to an all-time high of USD 43.1 billion in 2018, boosting projects that help developing countries cut emissions and address climate risks. This represents an increase of more than 22 per cent from the previous year, where climate finance totalled USD 35.2 billion. This is also a 60 percent increase since the adoption of the Paris agreement in 2015 response to the ever more pressing challenge of climate change, which disproportionately affects the poorest and most vulnerable.
The latest MDB climate finance figures are detailed in the 2018 Joint Report on Multilateral Development Banks’ Climate Finance, which combines data from the African Development Bank (AfDB), the Asian Development Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the Inter-American Development Bank Group and the World Bank Group. These banks account for the vast majority of multilateral development finance globally. The 2018 report also summarises information on climate finance from the Islamic Development Bank (IsDB), which joined the MDB climate finance tracking groups in October 2017.
The report shows that USD 30.2 billion, or 70%, of the total financing for 2018 was devoted to climate change mitigation investments that aim to reduce harmful greenhouse gas emissions and slow down global warming.
The remaining USD 12.9 billion, or 30%, was invested in adaptation efforts to help address mounting impacts of climate change, including worsening droughts and more extreme weather events from extreme flooding to rising sea levels.
Since 2011, when the six MDBs initiated joint reporting, they have committed nearly USD 237 billion in climate finance for developing and emerging economies. Climate funds channelled to these countries through MDBs, such as the Climate Investment Funds, the Global Environment Facility Trust Fund, the Global Energy Efficiency and Renewable Energy Fund, the European Union’s funds for Climate Action, and the Green Climate Fund, play an important role in boosting MDB climate financing. In addition, as well as the USD 43.1 billion of MDB finance in 2018, MDBs report another USD 68.1 billion in net climate co-finance investments from the public and private sector - adding up to total climate finance for the year of USD 111.2 billion.
Source : Strategic Research Institute