Multilateral Development Banks Provide Record Climate Finance of Close to $61 Billion for Low and Middle-Income Economies In 2022

Jeddah, Kingdom of Saudi Arabia, 12 October 2023:  A joint report by Multilateral Development Banks (MDBs) published today, finds that MDB climate finance reached a new record high in 2022. The announcement comes as delegates meet in Marrakesh, Morocco, for the World Bank Group and International Monetary Fund Annual Meetings, where scaling up public climate finance, in particular for low and middle-income economies, is one of the items on top of the agenda.

  •  $60.7 billion support climate action in low and middle-income economies, including $22.7 billion for climate change adaptation.
  •  Worldwide MDB climate finance reaches nearly $100 billion up from $82 billion in 2021.
  •  The amount of mobilised global private finance stands at $69 billion up from $41 billion in 2021.

Low and middle-income economies

In 2022, $60.7 billion of MDB climate finance was for low-income and middle-income economies: With $38.0 billion, or 63% of this total, for climate change mitigation finance and $22.7 billion or 37% for climate change adaptation finance. The amount of mobilised private finance stood at $16.9 billion.

High-income economies

In 2022, $38.8 billion was allocated for high-income economies. Of this total, $36.3 billion, or 94% was for climate change mitigation finance and $2.5 billion or 6% was for climate change adaptation finance. The amount of mobilised private finance stood at $51.9 billion.

Surpassing climate finance targets

With the record 2022 climate finance volumes, MDBs are surpassing for the second year in a row the 2025 climate finance targets they set themselves at the UN Secretary General’s Climate Action Summit in 2019. This included delivering an expected collective total of $50 billion climate finance for low-income and middle-income economies, at least $65 billion of climate finance globally, with an expected doubling in adaptation finance to $18 billion; and private mobilisation of $40 billion. Compared to 2019 volumes, MDB 2022 climate finance for low and middle-income economies has increased by 46% (2019, $41.5 billion) and global MDB climate finance by 62% (2019, $61.6 billion).

Commenting on the report, IsDB Vice President Dr. Mansur Muhtar says, “The year 2022 was an incredible year for climate finance commitments, collectively made by MDBs. These numbers further demonstrate our collective response to the call to increase ambition and align financial flows with the objectives of the Paris Agreement. At the IsDB, we are quite excited about the meaningful impacts this committed climate finance would have in helping transform and support our member countries towards a development path that aligns with their effort for a greener, resilient, and inclusive society”.

Transparent joint reporting on climate finance

The Joint Report on MDBs Climate Finance is an annual collaborative effort to publish MDBs’ climate finance figures, together with a clear explanation of the methodologies for tracking this finance as climate finance. This joint report is intended to track progress in relation to MDB joint climate finance targets such as those announced at the UN Climate Change conference COP21 and the greater ambition pledged for the 2021-2025 period.

This year’s report brings Council of Europe Development Bank and New Development Bank’s climate finance fully into the MDB reporting, so that for the first time, all ten MDBs’ climate finance is included in the aggregated data reported. Even without the two MDBs joining the reporting, global climate finance went up to $98 billion in 2022. In addition, this year’s report includes a more detailed breakdown of MDB climate finance in least developed countries and small island developing states.

The 2022 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 Council of Europe Development Bank (CEB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the Inter-American Development Bank Group (IDBG), the Islamic Development Bank (IsDB), the New Development Bank (NDB) and the World Bank (WB).