Multi-billion Dollar Climate Financing Goal set by Multilateral Development Banks for Low- and Middle-Income Countries
In a bold move, multilateral development banks (MDBs) are aiming to mobilize a whopping $120 billion annually by 2030 for climate financing in low- and middle-income countries, according to recent projections.
This ambitious funding goal includes a dedicated $42 billion for climate adaptation efforts, with an additional $65 billion expected to come from private sector investments.
Joint Statement at COP29 Highlights Collective Climate Finance Target for MDBs
The target was unveiled in a joint statement issued during COP29 in Baku, Azerbaijan, by several prominent MDBs, including the Islamic Development Bank, African Development Bank, the Asian Development Bank, and others. The statement emphasized the crucial role of setting a strong, collective climate finance target in meeting the goals of the Paris Agreement.
MDBs Set New Targets for High-Income Countries and Emphasize Urgency of Climate Action
For high-income countries, the MDBs have set a target of $50 billion in annual climate finance, with additional funds specifically allocated for adaptation. The MDBs have already surpassed their climate financing projections for 2025, demonstrating their commitment to enhancing climate action.
MDBs Release Frameworks to Enhance Effectiveness of Climate Finance
In response to the urgent need for enhanced climate action, the MDBs have released the “Common Approach to Measuring Climate Outcomes,” a framework aimed at tracking global progress on climate mitigation and adaptation. Additionally, the MDBs have published their “Country Climate Action Platforms” to strengthen collaboration between stakeholders and ensure effective targeting of climate finance.
Global South Pushes for Equitable Climate Financing at COP29
COP29 has become a critical moment in global climate negotiations, with developing nations advocating for significant climate financing, stronger adaptation measures, and equitable policy outcomes. These countries continue to push for a climate finance framework based on the principle of common but differentiated responsibilities, reflecting nations’ respective capabilities and historical responsibilities.