MDBs deliver record $137bn climate finance in 2024, set bigger targets for COP30 in Brazil

Multilateral development banks (MDBs) channelled a record $137 billion into global climate finance in 2024, a 10 percent increase from the previous year, according to the 2024 Joint Report on Multilateral Development Banks’ Climate Finance released on Tuesday.

The bulk of the funding, over $85 billion, went to low- and middle-income economies, marking a 14 percent rise compared to 2023 and more than double the amount provided five years ago.

The report was coordinated by the European Investment Bank (EIB) with contributions from institutions including the African Development Bank (AfDB), World Bank Group, Asian Development Bank and others.

Alongside their direct financing, MDBs also mobilised $134 billion in private capital for climate action, up 33 percent year-on-year. Of this, $33 billion was directed to developing economies, while $101 billion supported projects in high-income countries.

“This surge in financing highlights the growing scale of international climate investment,” the report stated, adding that the trend is expected to shape negotiations at COP30 in Belém, Brazil, in November. At COP29 in Baku last year, countries committed to scaling up climate support to at least $1.3 trillion annually by 2035.

Anthony Nyong, Director for Climate Change and Green Growth at the AfDB, said Africa was accelerating efforts to unlock its green potential in energy, innovation and nature-based solutions.

“We are putting climate adaptation at the heart of this effort. At the African Development Bank, we continuously meet our climate finance annual target and over half of our climate finance goes to helping African countries build resilience, protect livelihoods and secure a climate-resilient future, while still investing in a greener future,” Nyong said.

Key findings from the 2024 report

Low- and middle-income economies received $85.1 billion, with $58.8 billion (69%) for mitigation projects and $26.3 billion (31%) for adaptation.

High-income economies received $51.5 billion, with $46.5 billion (90%) directed to mitigation and $5 billion (10%) to adaptation.

Private finance mobilised totalled $134 billion globally, with $33 billion channelled to developing economies.

The report also highlighted ongoing efforts by MDBs to boost transparency in climate financing through digitalisation, making climate data more accessible and user-friendly.