Nine multilateral development banks (MDBs) announced plans to increase global climate action investments they support each year to USD175 billion by 2025, based on a statement at the UN Secretary-General’s Climate Action Summit in New York.
In 2018, MDB climate finance in developing countries and emerging economies already reached record annual levels, resulting in USD111 billion of combined MDB climate finance and cofinance.
“We will focus on building and strengthening partnerships for greater impact,” according to the statement. The nine MDBs have been at the forefront of ambitious climate action for more than a decade. It added: “We are united in increasing our collective ambitions, as well as our clients’, to ensure that the common goals of the Paris Agreement will be met.”
The increased funding will come in three streams:
- Annual combined MDB climate finance globally will rise to USD65 billion by 2025—a 50-percent increase from current levels—with USD50 billion for low- and middle-income economies.
- Within this total, annual combined climate adaptation finance will double to USD18 billion by 2025.
- Annual cofinancing for investment in climate action is expected to rise significantly to USD110 billion by 2025. Of that, USD40 billion is expected to be mobilized from private sector investors.
The joint financing pledge comes amid growing evidence of the need for urgent and systemic combined action to meet the common goals of the 2015 Paris Agreement on Climate Change, which aims to limit the increase in global temperatures to well below 2°C while pursuing efforts for 1.5°C.
The Asian Infrastructure Investment (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia. Headquartered in Beijing, we began operations in January 2016 and have now grown to 100 approved members worldwide. By investing in sustainable infrastructure and other productive sectors in Asia and beyond, we will better connect people, services and markets that over time will impact the lives of billions and build a better future.