MULTILATERAL DEVELOPMENT BANKS SET NEW CLIMATE FINANCE RECORD IN 2022
A joint report released today by Multilateral Development Banks (MDBs) reveals that climate finance reached an unprecedented high in 2022, breaking records and surpassing targets set in 2019 at the UN Secretary-General’s Climate Action Summit.
As delegates gather in Marrakesh, Morocco, for the World Bank Group and International Monetary Fund Annual Meetings, the MDBs announce that in 2022, $60.7 billion of climate finance was allocated for low-income and middle-income economies. Notably, $38 billion (63%) was earmarked for climate change mitigation, while $22.7 billion (37%) was dedicated to climate change adaptation. The private sector also contributed significantly, mobilizing $16.9 billion.
High-income economies received $38.8 billion in climate finance, with $36.3 billion (94%) allocated for climate change mitigation and $2.5 billion (6%) for climate change adaptation. The private sector’s mobilized finance in high-income economies stood at an impressive $51.9 billion.
The Asian Development Bank (ADB) played a pivotal role, committing $7.1 billion of climate finance in 2022, with $4.3 billion allocated to climate change mitigation and $2.8 billion for climate change adaptation. ADB further mobilized $548 million from the private sector.
The report indicates that MDBs are consistently exceeding their climate finance targets for the second consecutive year, showcasing a commitment to climate action. The 2022 figures represent a 46% increase in climate finance for low- and middle-income economies compared to 2019 and a 62% increase in global MDB climate finance during the same period.
ADB Climate Envoy Warren Evans expressed encouragement for the growth in climate finance, particularly the rise in private sector mobilization. However, he emphasized the need for more significant efforts, especially in the Asia-Pacific region, which houses several climate-vulnerable countries.
The Joint Report on MDBs Climate Finance is a collaborative annual effort to publish climate finance figures and methodologies, tracking progress toward MDBs’ joint climate finance targets. This year’s report includes the Council of Europe Development Bank and New Development Bank’s climate finance for the first time, encompassing all 10 MDBs’ climate finance numbers.
ADB, established in 1966, remains committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, working toward eradicating extreme poverty. Owned by 68 members, including 49 from the region, ADB continues to play a key role in climate finance and sustainability efforts.
