- Worldwide 2021 figures surpass 2025 climate finance goals, with global mitigation finance of nearly $63 billion
- Global adaptation finance reaches over $19 billion
- The amount of mobilised global private finance stands at $41 billion
Climate finance committed by major multilateral development banks (MDBs) rose by more than 24% last year compared to 2020, according to the 2021 Joint Report on Multilateral Development Banks’ Climate Finance, published today.
The 2021 total financing by multilateral development banks already surpassed the 2025 climate finance goals set at the 2019 UN Secretary General’s Climate Action Summit in New York. The goals amount to an expected collective total of $50 billion for low- and middle-income economies, and at least $65 billion of climate finance globally, with a projected doubling of adaptation finance to $18 billion, and private mobilisation of $40 billion.
Low- and middle-income countries
In 2021, MDBs provided around $51 billion (62% of overall MDB climate finance) in climate finance to low- and middle-income economies. Of this total, more than $33 billion (65%) was for climate change mitigation and more than $17 billion (35%) for climate change adaptation. The amount of mobilised private finance stood at $13 billion.
In addition, in 2021, MDBs provided more than $31 billion (38% of overall MDB climate finance) in climate finance to high-income economies, with $29 billion (95%) for climate change mitigation and $1.6 billion (5%) for climate change adaptation. The amount of mobilised private finance stood at $28 billion.
IsDB Vice President Mansur Muhtar commented:
"It is encouraging to see multilateral development banks collectively reaching record levels of climate finance in 2021, despite global challenges, such as COVID-19. As a group, we understand the scale of the climate change challenge and look forward to continuing to provide financial support for climate action. For our part, the Islamic Development Bank (IsDB) remains committed to mobilizing climate finance to support our member countries to drive green economic growth and pursue low-carbon and climate resilient development pathways."
The 2021 multilateral development bank report, coordinated by the EIB, combines data from the African Development Bank (AfDB), the Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the Inter-American Development Bank Group (IADB), the Islamic Development Bank (IsDB) and the World Bank Group (WBG). This year’s report also summarises information on climate finance tracking from the Council of Europe Development Bank (CEB) and the New Development Bank (NDB), presented separately from the joint figures.