Multilateral Development Banks Increased Climate Financing to $163 Billion in 2025, Supporting Climate-Resilient and Sustainable Growth

• Multilateral development banks’ climate financing in low-and middle-income countries jumped 21% to $103 billion last year, according to their new annual report.
• MDBs' adaptation financing in low- and middle-income economies rose 31% to $35 billion, and mitigation financing rose 16% to $68 billion.
• MDBs on track to meet their 2030 climate-financing projections across all countries of operation.

Multilateral development banks (MDBs) including the Inter-American Development Bank Group increased climate financing to record levels in 2025, reinforcing their role in supporting climate-resilient and sustainable economies. Climate financing by MDBs in low- and middle-income countries jumped 21% from the previous year to an all-time high of $103 billion, while MDB climate financing across all countries of operation rose 19% to a record $163 billion.

The results, published today in the 2025 Joint Report on Multilateral Development Banks’ Climate Finance, confirm that MDBs are on track to meet their 2030 projections announced at the United Nations climate conference COP29 in Baku in 2024.

In low- and middle-income economies, MDB climate financing has doubled over the past five years. Of the $103 billion in 2025, mitigation accounted for the largest share, at $68 billion, while adaptation finance continued to grow rapidly to $35 billion. Private-sector mobilization in these countries reached $35 billion.

In high-income economies, MDB climate financing in 2025 also remained substantial, meeting or exceeding 2030 targets five years in advance and supporting primarily mitigation efforts with $53 billion, alongside targeted adaptation investments of $7 billion. Private finance mobilization in these countries reached $80 billion.

For the joint summary report with the overview of 2025 figures click here.

MDB climate finance

At COP29 in Baku, MDBs set out financial efforts to help countries achieve ambitious climate results. By 2030, they projected to provide $120 billion annually in collective climate financing for low- and middle-income countries, including $42 billion for adaptation, while mobilizing an additional $65 billion a year from the private sector.  For high-income countries, MDBs project $50 billion a year in climate financing by 2030, including $7 billion for adaptation, alongside a further $65 billion in mobilized private financing.

At COP30 in Belém, MDBs reaffirmed their commitment to continue to work together as a system to assist clients, helping them benefit from the opportunities of climate smart development.

Advancing transparency

MDBs are advancing their joint digitalization efforts to improve the transparency, accessibility and usability of climate finance data. 

Launched in April 2026, the pilot version of the MDB Climate Finance Dashboard complements the joint summary report by providing more granular data, detailed breakdowns and the full set of harmonized methodologies used by MDBs. Through interactive tables and visualizations, stakeholders can explore climate financing data in a more flexible and intuitive way, enhancing both understanding and usability.

MDB joint reporting on climate financing

The 2025 MDB climate finance reporting is coordinated and prepared for publication by the EIB, with assistance from the European Bank for Reconstruction and Development (EBRD). The reporting combines data from the African Development Bank (AfDB), the Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB), the Council of Europe Development Bank (CEB), the EBRD, the EIB, the Inter-American Development Bank Group (IDB Group), the Islamic Development Bank (IsDB), the New Development Bank (NDB) and the World Bank Group (WBG).