The world’s six largest multilateral developments banks (MDBs) continued to make a strong contribution to the global climate challenge in 2016, increasing their climate financing in developing countries and emerging economies last year to $27.4 billion from $25 billion in 2015.
Of this total, $21.2 billion, or 77 percent, was dedicated to climate mitigation finance, with the remaining 23 percent devoted to climate adaptation.
Combined with additional co-financing from other investors, the total amount of financed mobilized for climate action reached $65.3 billion last year.
The MDBs have reported jointly on climate finance since 2011. Collectively, the banks have committed over $158 billion in climate finance during the past six years.
The latest MDB climate finance figures are detailed in the 2016 Joint Report on Multilateral Development Banks’ Climate Finance, combining data from the African Development Bank, the Asian Development Bank the European Bank for Reconstruction and Development, the European Investment Bank, the Inter-American Development Bank Group and the World Bank Group.
Broken down by region, the largest share of last year’s MDB climate finance went to South Asia, with 20 percent, followed by East Asia and the Pacific and non-EU Europe and Central Asia, with 19 and 18 percent, respectively. The Middle East and North Africa at 9 percent and Sub-Saharan Africa at 7 percent received the least climate finance.
The MDBs also reported again on climate finance according to financial instrument. The vast majority of finance, 73 percent, was provided in the form of investment loans.
The MDBs’ methodologies for climate finance tracking align with the Common Principles for Climate Change Mitigation Finance Tracking, jointly agreed by the MDBs and by the International Development Finance Club in July 2015, have resulted in efforts by the MDBs to harmonize their approaches in tracking mitigation and adaptation finance.
“In 2016, the IDB Group approved a record volume of climate finance. We will continue to leverage public and private climate finance for mainstreaming adaptation, mitigation and climate resilience in support of the Paris Agreement and the Sustainable Development Goals,” said Juan Pablo Bonilla, Manager of the IDB’s Climate Change and Sustainable Development Sector.
The MDBs are continuing to work to update their joint tracking methodologies for mitigation and adaptation, to support the goals of the Paris Agreement, playing a key role in defining the finance flows consistent with a pathway towards low greenhouse gas emissions and climate resilient development.
About the IDB
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source oflong-term financing for economic, social and institutional development in Latin America and the Caribbean.The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.
- John Ferriter