Published on June 18th, 2018 | by Joshua S Hill0
World’s 6 Largest Multilateral Development Banks Committed $35.2 Billion To Climate Financing In 2017
June 18th, 2018 by Joshua S Hill
The world’s six largest multilateral development banks committed $35.2 billion to climate financing for developing and emerging economies in 2017, a new record seven-year high and up 28% on 2016.
Of the $35.2 billion directed to climate financing in 2017, $27.9 billion, or 79% of the total, was focused on climate mitigation projects that aim to reduce greenhouse gas emissions and slow down the pace of global warming. The remaining 21% of the total, or $7.4 billion, was focused on financing for climate adaptation projects that help those economies and communities hardest hit by climate change deal with the changing environment, such as increased levels of rain, worsening drought conditions, and extreme weather events.
The 2017 Joint Report on Multilateral Development Banks’ Climate Finance gathered data from the world’s six largest multilateral development banks (MDBs): the African Development Bank (AfDB), the Asian Development Bank (ADB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the Inter-American Development Bank Group (IDBG) and the World Bank Group (WBG). This is the seventh edition of the report and it showed that 2017 was far and away the largest year for their financing efforts.
“This report, which focuses on developing countries and emerging economies, shows how the MDBs are leading international efforts to mobilise the finance needed to fight against Climate Change and to report on climate finance in a robust, transparent, and consistent manner,” explained EIB Vice-President Jonathan Taylor, responsible for Climate Action and Environment. “The EIB has taken an additional leadership role by helping to coordinate the MDBs’ Climate Mitigation finance tracking. I am proud that the EU Bank is well on track to fulfil its commitment to increase climate finance in developing countries to 35% of total financing by 2020, to help turn the Paris agreement into reality.”
Collectively, the six MDBs have committed almost $194 billion to climate financing over the past seven years in developing and emerging economies, making up the lion’s share of multilateral development financing. However, climate funds such as the Climate Investment Funds (CIF), the Global Environment Facility (GEF) Trust Fund, the Global Energy Efficiency and Renewable Energy Fund (GEEREF), the European Union’s funds for Climate Action, the Green Climate Fund (GCF) and others have also played an important role in boosting MDB climate finance.
Broken down by region, Latin America and the Caribbean attracted the largest share of financing, with $7.1 million, or 20% of the total. This was followed by Sub-Saharan Africa with $5.7 million, or 16%, and East Asia and the Pacific and South Asia with 14% each.
“The increasing level of total MDB climate finance flowing to developing countries is encouraging,” said Anthony Nyong, Director for Climate Change and Green Growth at the African Development Bank. “African Development Bank’s climate finance grew from 9% in 2016 to 28% in 2017 and on track to meet the 40% commitment by 2020. However, Africa continues to receive only 3% of global climate finance, which does not match the level of ambition put forward in the NDCs of many African countries. Global advocacy and action is necessary to avail requisite climate finance and technology necessary to deliver the goals of the Paris Agreement.”
“For the World Bank Group, 2017 was a record-setting year on climate finance as a result of a deliberate effort over the past few years to mainstream climate considerations into our operations. This upward trend is continuing,” added World Bank Senior Director for Climate Change John Roome. “The Multilateral Development Banks are also playing a key role in leveraging private sector finance which will be critical to meeting the objectives of the Paris Agreement. Last year alone, the WBG crowded in $8.6 billion in private financing for climate change, which is up 27% from 2016.”