Multilateral Development Banks Commit to Mobilizing USD 120 Billion for Climate Action at COP29

Multilateral Development Banks Commit to Mobilizing USD 120 Billion for Climate Action at COP29

(IN BRIEF) At COP29 in Baku, multilateral development banks (MDBs) announced a commitment to collectively mobilize significant financial support to help countries meet ambitious climate goals. By 2030, MDBs estimate they will direct USD 120 billion annually towards low- and middle-income countries, with a portion allocated to adaptation efforts. They also aim to raise USD 65 billion from the private sector. MDBs have exceeded their 2025 climate finance targets, and their impact is now focused on driving transformative change, enhancing climate results, and engaging private sector partnerships. Additionally, MDBs have called for the establishment of a robust New Collective Quantified Goal on Climate Finance (NCQG) and released frameworks to measure and assess climate results globally.

(PRESS RELEASE) LUXEMBOURG, 13-Nov-2024 — /EuropaWire/ — At COP29 in Baku, multilateral development banks (MDBs) issued a joint statement highlighting their financial support and commitment to helping countries achieve ambitious climate goals. MDBs forecast that by 2030, their collective annual climate financing for low- and middle-income countries will reach USD 120 billion, with USD 42 billion directed towards adaptation efforts. The MDBs also aim to mobilize USD 65 billion from the private sector for climate action. For high-income countries, collective climate financing is expected to total USD 50 billion, with USD 7 billion allocated for adaptation, while also aiming to attract USD 65 billion from private sector investments.

The MDBs have already surpassed their 2025 climate finance targets set in 2019, with a 25% increase in direct climate financing and a doubling of mobilized funds for climate projects over the past year.

EIB President Nadia Calviño emphasized the urgency of continued action, stating, “The green energy revolution is underway, and communities and businesses have recognized that ambitious climate action is both necessary and wise. At COP29, the multilateral development banks reaffirm their commitment to global climate action over the next five years, focusing on increasing the impact of the projects we finance and helping countries meet their climate goals.”

The MDBs also highlighted that their influence goes beyond financial commitments. “While the scale of our financing is essential, our most significant impact stems from our ability to drive transformative change,” the statement read. The MDBs are working to amplify their catalytic effect by improving the results and impact of their financing, engaging more deeply with countries through various platforms, and fostering private sector involvement.

In the statement, MDBs called for the establishment of a New Collective Quantified Goal on Climate Finance (NCQG) at COP29, stressing that such a goal is crucial for fulfilling the Paris Agreement’s objectives. They urged Parties to reach a strong agreement on this matter.

Additionally, the MDBs unveiled the Common Approach to Measuring Climate Results, which provides a shared framework to assess and track global progress on climate mitigation and adaptation. They also released the Country Platforms for Climate Action statement, which reaffirms their support for fostering collaboration between host countries, MDBs, donors, and the private sector to launch and expand climate action platforms.

The statement was issued by a coalition of development banks, including the African Development Bank Group, Asian Development Bank, World Bank Group, European Investment Bank, and several others.

For more information about the EIB’s activities at COP29, including events and sessions, the EIB’s website provides a full agenda and details.

EIB at COP29

Find an overview of EIB activities at COP29 on our website. The EIB has a pavilion in the side event area of the blue zone and is running a series of events on numerous topics. You will find the full agenda here. You are welcome to join to watch the sessions either live or later at your convenience. In addition, the EIB shares a pavilion with the group of multilateral development banks. You will find the full agenda here.

Background information

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.

The EIB Group has been transforming itself into the climate bank through more than a decade of progress and substantial investment, tied to several milestones: the world’s first green bonds in 2007, our first Climate Strategy in 2015 in the wake of COP21 in Paris, our new Energy Lending Policy in 2019 (ending support for fossil fuel energy projects), and then in 2020 the Climate Bank Roadmap.

•  In 2023, EIB Group green finance reached nearly €50 billion, more than double the amount of green finance provided in 2019, when European countries asked the EIB to strengthen its role as the climate bank.
•  In 2021, the EIB became the first MDB to align our financial activities with the Paris Agreement.
• With its Climate Bank Roadmap the EIB Group is on track to support €1 trillion of investment in climate action and environmental sustainability through the critical decade, 2021-2030.
• The EIB has committed to increase investment in climate action and environmental sustainability to more than 50% of annual EIB lending by 2025 – last year that was exceeded with 60%.
• In August 2024, the EIB passed the €100 billion mark of Climate Awareness Bonds and Sustainable Awareness Bonds  issuance. This makes the EIB the world’s largest issuer of green bonds as well as assured sustainable bonds with dedicated use of proceeds among multilateral development banks. To meet the needs of a broad investor base, the EIB has issued these bonds in 23 currencies, a market record.

EIB Global is the EIB Group’s specialised arm dedicated to operations outside the European Union, and a key partner of the European Union’s Global Gateway strategy. We aim to support at least €100 billion of investment by the end of 2027, around one-third of the overall target of Global Gateway. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to local communities, companies and institutions through our offices across the world.

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SOURCE: European Investment Bank