MANILA, 14th October, 2023 (WAM) – Climate finance provided by multilateral development banks (MDBs) reached a new record high in 2022, according to a new report by the MDBs.

The announcement comes as delegates meet in Marrakesh, Morocco, for the World Bank Group and International Monetary Fund Annual Meetings, where scaling up public climate finance, particularly for low and middle-income economies, is one of the top agenda items.

In 2022, $60.7 billion of MDB climate finance was allocated for low-income and middle-income economies. $38 billion, or 63% of this total, was for climate change mitigation finance and $22.7 billion or 37% was for climate change adaptation finance. The amount of mobilized private finance stood at $16.9 billion.

Last year, $38.8 billion was allocated for high-income economies. Of this total, $36.3 billion, or 94% was for climate change mitigation finance and $2.5 billion or 6% was for climate change adaptation finance. The amount of mobilized private finance stood at $51.9 billion.

In 2022, the Asian Development Bank (ADB) committed $7.1 billion of climate finance including $4.3 billion in climate change mitigation finance and $2.8 billion for climate change adaptation. ADB also mobilized $548 million in climate finance from the private sector.

With the record 2022 climate finance volumes, MDBs are surpassing for the second year in a row the 2025 climate finance targets they set themselves at the UN Secretary General’s Climate Action Summit in 2019. These included delivering an expected collective total of $50 billion climate finance for low-income and middle-income economies; at least $65 billion of climate finance globally, with an expected doubling in adaptation finance to $18 billion; and private mobilization of $40 billion. Compared to 2019 volumes, MDB 2022 climate finance for low and middle-income economies has increased by 46% (2019, $41.5 billion) and global MDB climate finance by 62% (2019, $61.6 billion).

“It is encouraging to see the growth in MDB climate finance for low- and middle-income economies, particularly the rise in the amount of private sector finance mobilized,” said ADB Climate Envoy Warren Evans. “But we need to do more. In Asia and the Pacific, home to many of the most climate-vulnerable countries, we will need to mobilize significant amounts of private sector finance to move from the billions to trillions required to cut greenhouse gas emissions and urgently scale up climate resilience both now and into the future.”