Multilateral Development Banks (MDBs) have allocated a record $60.7 billion in 2022 for climate initiatives targeting low and middle-income economies, according to a report unveiled at the World Bank Group and International Monetary Fund Annual Meetings in Marrakesh. Of this amount, $38 billion is specifically dedicated to tackling climate change through mitigation measures, while $22.7 billion is allocated for climate change adaptation initiatives. Additionally, the private sector contributed $16.9 billion for the cause. These figures indicate that MDBs have exceeded their own climate finance targets set for 2025 at the UN Secretary General’s Climate Action Summit in 2019.
The report highlights that high-income economies were allocated $38.8 billion in 2022, with $36.3 billion focused on mitigation efforts and $2.5 billion for adaptation. Private contributions for these economies reached a substantial $51.9 billion. The Joint Report on MDBs Climate Finance also revealed that global climate finance, excluding the latest entrants, reached $98 billion this year. The report emphasizes the importance of ramping up climate finance in order to meet global goals and ensure the 1.5C benchmark remains intact.
Warren Evans from the Asian Development Bank commented on the findings, stating that the increase in MDB climate finance for low- and middle-income economies is a positive sign. However, he emphasized the need for escalated actions, particularly in the Asia-Pacific region. Dr. Sultan Al Jaber, the designated President for COP28, expressed that the figures in the joint report demonstrate that global calls for action are being heard. He emphasized the crucial role of ramping up climate finance in achieving collective goals and maintaining the 1.5C target.
