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Add to Preferred SourcesMultilateral development banks provided a record $137 billion in climate finance last year, marking a 10% increase from 2023, with most funds flowing to low- and middle-income countries, according to a joint report released Tuesday, September 9. The banks also mobilized $134 billion in private climate finance, up 33% from the previous year. This funding supports renewable energy, green cities, clean transport, water security, and climate adaptation projects worldwide.
Climate finance has become the backbone of development bank efforts to drive sustainable growth globally. The funding helps countries build resilience against extreme weather, rising sea levels, and water scarcity while transitioning to clean energy systems. Development banks are working together more closely to ensure money reaches the most urgent climate needs efficiently.
Low- and middle-income economies received $85.1 billion in climate finance, representing a 14% yearly increase and more than doubling over five years. Of this amount, $58.8 billion went toward reducing emissions while $26.3 billion supported adaptation efforts. High-income countries received $51.5 billion, with $46.5 billion for mitigation and $5 billion for adaptation. Private sector mobilization reached $33 billion for developing countries and $101 billion for wealthy nations.
“Meeting Asia and the Pacific’s burgeoning clean power needs, while building resilience for the poor and vulnerable against extreme weather, rising sea levels, melting glaciers, and water scarcity, are among the most complex challenges of our time,” said ADB Director General Yevgeniy Zhukov.
Development banks have committed to providing $120 billion annually by 2030 for developing countries, including $42 billion for adaptation, while mobilizing another $65 billion yearly from private sources.