Mdbs Reach Historic Climate Finance Milestone Ahead Of COP29 Summit

9/20/2024 7:18:09 AM

(MENAFN- Trend News Agency) BAKU, Azerbaijan, September 20. Multilateral development banks (MDBs) have announced that their global climate finance hit an unprecedented high of $125 billion in 2023, more than doubling the amount from 2019, Trend reports.

According to the MDB joint report, of the total $125 billion, $74.7 billion was directed to low- and middle-income countries. These funds were divided between climate change mitigation, which accounted for 67% (or $50 billion), and climate change adaptation, which received 33% ($24.7 billion). Additionally, the private sector contributed $28.5 billion in mobilized climate finance for these countries, further amplifying the impact of MDBs' efforts.

High-income economies received $50.3 billion in MDB climate finance in 2023. A staggering 94% of this, or $47.3 billion, was allocated toward mitigation efforts aimed at reducing greenhouse gas emissions, while 6% ($3 billion) supported adaptation projects. Mobilized private finance for high-income countries reached $72.7 billion, underscoring the increasing role of the private sector in addressing the global climate crisis.

As the European Bank for Reconstruction and Development (EBRD) noted, this announcement comes as the world prepares for the 29th session of the Conference of the Parties (COP29) to the United Nations Climate Change Conference, scheduled for November 2024 in Baku, Azerbaijan. A key focus of the summit will be on boosting climate finance and agreeing on a new global target for future funding. The increasing role of MDBs and private sector mobilization will be critical to reaching these ambitious goals.

Harry Boyd-Carpenter, Managing Director for Climate Strategy and Delivery at EBRD, emphasized the significance of 2023's achievements:“We are very pleased to be able to announce record climate finance levels for MDBs as a group, and for the EBRD in particular. 2023 was a landmark year in terms of high temperatures and renewable energy installations, highlighting the urgency of addressing the climate emergency. We're encouraged by the high levels of private-sector climate finance, which reached $26.7 billion for the EBRD.”

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