Climate finance provided by multilateral development banks (MDBs) to low- and middle-income countries reached a record $60.7 billion in 2022, registering a significant increase of 46% compared to 2019. this is revealed in a new joint MDB report released recently at the IMF-World Bank Annual Meetings in Marrakech, Morocco.
This climate financing includes an envelope of $22.7 billion allocated specifically to adaptation to climate change. The figures also indicate an increase in overall MDB climate finance, which now stands at almost $100 billion, up from $82 billion in 2021.
Another interesting data is the increase in private financing in the climate field, which reached 69 billion dollars in 2022, compared to 41 billion in 2021. This demonstrates the growing interest of the private sector in climate investments.
The report reveals that of total climate finance, 63%, or $38 billion, was dedicated to mitigating the effects of climate change, while 37%, or $22.7 billion, supported projects adaptation. Concerning private financing mobilized, it reached 16.9 billion dollars.
It is also interesting to note that of the $38.8 billion allocated by MDBs to high-income countries, 94% was for climate change mitigation, and only 6% was allocated for adaptation. Private financing mobilized in this category reached $51.9 billion.
Finally, the report highlights the importance of continuing to increase climate financing, particularly for low- and middle-income countries. It is stated that a target of $50 billion in cumulative climate finance for these countries is established, with a focus on increasing resources allocated to adaptation to climate change.
In conclusion, multilateral development banks play a key role in climate finance, and these new statistics demonstrate their growing commitment to the fight against climate change. However, it is essential to continue to mobilize financing, particularly for the most vulnerable countries, in order to face current and future climate challenges.