BAKU (COP29): Multilateral Development Banks (MDBs) have pledged to significantly ramp up climate financing, with a collective goal to reach $120 billion annually by 2030 for low and middle-income countries. This funding commitment was announced in a joint statement released on Tuesday at the 29th UN Climate Change Conference (COP29) in Baku.
The MDBs’ climate financing will include $42 billion dedicated to adaptation efforts, with an additional focus on mobilizing $65 billion from the private sector to help address climate change challenges. For high-income countries, the annual climate financing commitment is expected to reach $50 billion, including $7 billion for adaptation, with similar efforts to attract private sector investments.
The new financing targets reflect a significant increase in the MDBs’ climate funding efforts. According to the statement, MDBs have already surpassed the ambitious climate finance projections they set in 2019. Specifically, direct climate finance has grown by 25%, and mobilized funds for climate action have doubled over the past year.
MDBs highlighted that, while the scale of their financial commitments is crucial, their most significant impact comes from their ability to drive transformative change in climate action efforts. The focus is not just on financing but on creating long-term, sustainable shifts that will help countries meet their climate goals.
This announcement underscores the growing recognition of the need for substantial and targeted financial support to enable the world’s most vulnerable countries to adapt to climate change while transitioning to low-carbon economies.
