MDBs Announce $120B for Climate Efforts at COP29
MDBs strengthen the climate efforts of developing countries with much-needed funding.
They have announced a common framework to guide, measure, and track the progress of climate mitigation actions.
Low- and middle-income countries are getting a helping hand from Multilateral Development Banks (MDBs) as they commit to supporting climate actions in these countries with a total of USD 120 billion annually by 2030.
This climate financing includes USD 42 billion allocated for projects that help countries adapt to climate change, along with an additional USD 65 billion from private companies. For high-income countries, USD 50 billion annually will be provided by MDBs, with USD 7 billion specifically for adaptation measures.
MDBs have already exceeded their climate finance targets by 2025, with a 25% increase in direct funding for projects that aim to mitigate climate change.
These banks believe that they not only commit to providing funding but also aim to drive large-scale changes. They are working closely with countries to achieve their climate goals while encouraging private-sector involvement.
At the climate conference in Baku, MDBs highlighted the need to establish a new collective climate finance goal, called the New Collective Quantified Goal on Climate Finance (NCQG), which aligns with the Paris Agreement.
They have introduced a common framework to measure and track the progress of climate mitigation and adaptation, which will help monitor the allocation of funds towards achieving climate goals. They have also published a statement supporting countries' climate actions, with plans to strengthen collaboration with governments, donors, and private companies to develop new projects and build on existing ones.
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Source: The World Bank
