IN a significant boost to global climate financing, multilateral development banks (MDBs) announced ambitious plans to collectively mobilize up to $170 billion annually by 2030 to support climate initiatives in low-, middle- and high-income countries.
In a joint statement on Wednesday, the MDBs’ estimated that their combined annual climate financing would reach $120 billion for low- and middle-income countries by 2030. This includes $42 billion earmarked for climate adaptation to help these nations build resilience against the impacts of climate change.
Additionally, MDBs aim to mobilize $65 billion from the private sector to complement their funding efforts, significantly increasing the total available resources.
For high-income countries, the MDBs plan to provide $50 billion annually, with $7 billion dedicated to adaptation efforts.
Similar to their approach in lower-income nations, the MDBs also aim to leverage an additional $65 billion from private sector investments, underscoring their strategy to use public funds as a catalyst for private climate finance.
This marked a substantial increase from previous projections. The MDBs said that they had already exceeded ambitious 2025 climate finance targets set in 2019, with a 25-percent increase in direct climate financing over the past year.
Furthermore, the mobilization of resources for climate initiatives was said to have doubled, demonstrating the MDBs’ enhanced capacity to support climate action at scale.
“While the scale of MDBs’ financial commitments is essential, MDBs’ most significant impact comes from our ability to drive transformative change,” the statement read.
“As emphasized by the Group of Heads of MDBs in the recent Viewpoint Note: MDBs Working as a System for Impact and Scale, we MDBs are focused on amplifying our catalytic effect by enhancing the results and impact of our financing, deepening engagement with countries through platforms, supporting clients’ climate ambitions and increasing private sector mobilization.”
The MDBs highlighted the urgent need for a New Collective Quantified Goal on Climate Finance (NCQG), calling on all Parties to reach a strong consensus on this objective, which they saw as crucial for meeting the targets of the Paris Agreement.
“A robust and ambitious NCQG is essential for achieving the goals of the Paris Agreement, and we urge Parties to reach a strong conclusion on this objective,” they said, stressing the importance of setting clear, ambitious climate finance targets that can drive global progress.
Additionally, the MDBs reaffirmed their commitment to country platforms for climate action, releasing a new statement of common understanding and future directions.
These platforms are designed to foster collaboration between host countries, MDBs, donors and the private sector, enabling tailored climate action based on country-specific demands.
Going forward, MDBs said they would leverage successful platform models and deepen their partnership with organizations like the International Monetary Fund.
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