The world’s six largest multilateral development banks continued their commitment to tackling climate change in 2016, committing $27.4 billion in climate financing in developing countries and emerging economies.
Financing for climate mitigation and climate adaptation in developing and emerging countries is a vital tool not just for the countries in question, but for the planet’s chances of avoiding catastrophic global warming. Further, focusing investment into these regions serves not just to prepare for and avoid climate change issues, but serves to enhance the living quality of millions.
As such, multilateral development banks (MDB) have been among those leading the way, investing billions into helping emerging economies prepare and adapt to changes in the climate. According to the 2016 Joint Report on Multilateral Development Banks’ Climate Finance published this week — which represents data from the world’s six largest multilateral development banks: the African Development Bank, 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 — a total of $27.4 billion was invested into climate financing in developing and emerging countries, up from $25 billion in 2015.
Reported MDB climate finance commitments, 2011-16 (in US$ million)
More specifically, this $27.4 billion was made up of $21.2 billion dedicated to climate mitigation financing, and the remaining $6.2 was directed to climate adaptation.
Further, when combined with additional co-financing from other investors, the total amount of money mobilized for climate action in 2016 reached $65.3 billion.
“The European Investment Bank is committed to supporting new climate related investment around the world,” said Jonathan Taylor, European Investment Bank Vice President responsible for climate action.
“This year’s report reflects the EIB’s recognition of the vulnerabilities of developing and emerging economies to climatic uncertainties with its focus on investment outside Europe.
“Together with other multilateral development banks we are pleased to back investment in transformational projects that cut emissions and address a changing climate. We welcome this opportunity to improve effective measurement of the impact of our shared climate engagement strengthened by the EIB’s unique experience of financing schemes across Europe and around the world.”
Breaking the figures down further, South Asia accounted for the largest share of financing with 20%, or $5,556 million, followed by East Asia and the Pacific with 19%, or $5,290 million, and Non-EU Europe and Central Asia with 18%, or $4,885 million.
MDB climate finance by region, 2016
“ADB acknowledges MDB’s pivotal role in providing climate finance and remains committed to strengthen its collaboration with other MDBs and ultimately to the successful implementation of the Paris Agreement,” said Bambang Susantono, Vice-President for Knowledge Management and Sustainable Development of the Asian Development Bank (ADB). “ADB has recently approved its Climate Change Operational Framework 2030, which will guide us in enhancing resilience and strengthening climate actions in the Asia and Pacific region.”