Climate change financing:
Multilateral development banks provide US $24b
Manila, Philippines: Six leading multilateral development banks (MDBs)
provided almost $24 billion worldwide in financing in 2013 for projects
in developing and emerging economies that address the challenges of
climate change, according to the third annual joint MDB report on
climate finance. The report, released today, demonstrates the shared
engagement expressed by the six MDBs last week to reinforce transparency
financing in climate change mitigation and adaptation.
The report was prepared by the African Development Bank, the Asian
Development Bank (ADB), the European Bank for Reconstruction and
Development, the European Investment Bank, the Inter-American
Development Bank, and the World Bank Group.
The new report analyses the financial commitments from the
institutions to support climate change mitigation and adaptation, and
the information provided has been expanded to include both a more
detailed sector based breakdown and a split between public and private
operations, as well as a regional breakdown of MDB financing.
"ADB shares the commitment of other MDBs to enhance climate finance
action in support of low-carbon and climate-resilient growth in
developing countries. One of our key thrusts is through Finance++, where
ADB's own finance is used to leverage resources through partnerships as
well as providing knowledge to maximize and accelerate development
effectiveness," said ADB's Vice-President for Knowledge Management
and Sustainable Development, Bindu N. Lohani.
From the US $24 billion in climate finance provided in 2013, 80%, or
US $19 billion, was dedicated to mitigation and 20%, or nearly US $5
billion, to adaptation. Of the total commitments, 9%, or $2 billion,
came from external resources, such as bilateral or multilateral donors.
The regional coverage for 2013 is quite balanced with two regions
(East Asia and the Pacific, Non-European Union Europe and Central Asia)
each receiving roughly 20% of total climate finance provided, and four
regions (South Asia, Sub-Saharan Africa, Latin America and the
Caribbean, European Union New Member States) 10%-15% each.
Concerning investment in different sectors, 22% of adaptation finance
supported coastal and riverine infrastructure including built flood
protection infrastructure, and 30% went to the category comprising
energy, transport, and other built environment and infrastructure. In
mitigation finance, renewable energy still takes by far the largest
share, with 25% of the total.
The MDBs believe that setting meaningful targets and identifying
opportunities for climate finance requires consistent and robust data.
This report is therefore based on the common climate finance tracking
methodology that MDBs have developed. MDBs will continue reaching out to
other interested parties, as they have done throughout this year and in
earlier years, to share knowledge and experience on climate finance
The MDBs believe their experiences in developing and reporting using
the joint approach will pave the way for continued partnership with
other financial institutions, including the members of the International
Development Finance Club, the United Nationals Framework Convention on
Climate Change, and others, and will continue to work closely with them.