Multilateral development banks delivered a record $137 billion in climate finance in 2024, according to a new joint report released on Wednesday. The figure represents a 10 percent increase from the previous year, highlighting a continued upward trend in global funding to combat climate change, particularly in developing economies. The 2024 Joint Report on Multilateral Development Banks’ Climate Finance was published with input from major institutions including the European Investment Bank, the African Development Bank Group, the Asian Development Bank, the World Bank Group, and the Inter-American Development Bank.
It details the distribution of climate-related investments and the scope of private capital mobilized alongside public funds. Of the total financing, $85.1 billion was allocated to low and middle-income economies, marking a 14 percent year-on-year rise. Within that amount, $58.8 billion was directed toward climate change mitigation initiatives such as renewable energy and emissions reduction programs, while $26.3 billion supported adaptation efforts, including projects aimed at strengthening resilience against climate-related disasters.
High-income countries received $51.5 billion in climate finance, of which $46.5 billion was spent on mitigation and $5 billion on adaptation. The report notes that public financing by multilateral development banks was supplemented by $134 billion in mobilized private finance in 2024, a 33 percent increase from the previous year. Of that total, $33 billion was mobilized in support of climate projects in developing economies, and $101 billion was directed to high-income countries.
Public and private sectors push global climate funding to new highs
The data reflects a significant acceleration in climate funding over the past five years. Since 2019, MDBs have more than doubled their annual commitments to climate action in low and middle-income economies. The institutions also confirmed that they are on track to meet 2030 targets for annual climate financing, including $120 billion for developing countries and $50 billion for advanced economies, excluding private capital mobilization.
In Africa, where vulnerability to climate impacts remains high, institutions are increasingly prioritizing adaptation measures. The African Development Bank reported that over half of its climate financing is directed at helping countries build resilience and protect livelihoods, while continuing to invest in renewable energy, nature-based solutions, and green innovation. The joint report also emphasized efforts to improve the transparency and accessibility of climate finance data.
COP30 set to address scaling of climate finance globally
A new digital platform is expected to be launched by the end of 2025 to allow the public and stakeholders to interact with detailed climate finance figures. An initial infographic summary was published alongside the report as part of a broader push to enhance visibility into the operations of global financial institutions. The findings come ahead of the 30th session of the United Nations Climate Change Conference, COP30, which will be held in Belém, Brazil, in November 2025. Climate finance is expected to be a central focus of the summit.
At COP29, held in Baku last year, countries agreed to scale up total annual support for developing nations to at least $1.3 trillion from both public and private sources by 2035. Multilateral development banks have reaffirmed their commitment to meeting annual targets and expanding cooperation with the private sector to bridge investment gaps in critical areas such as clean energy, sustainable agriculture, and infrastructure development. The report underscores the growing role of these banks in financing the global climate response and supporting vulnerable countries in their transition toward low-carbon economies. – By Content Syndication Services.