World’s top development banks pledge $120 billion for climate action by 2030

The world’s largest Multilateral Development Banks (MDBs) pledged $120 billion in climate financing for developing countries by 2030, according to a joint statement issued on Tuesday at COP29 in Baku.

The fund aims to boost global climate action by supporting both high- and low-income countries in tackling climate challenges.

According to the statement, MDBs estimate that by 2030, their annual collective climate financing for low- and middle-income countries will reach $120 billion, including $42 billion for adaptation.

The group also aims to bring in an additional $65 billion from private investors, reinforcing their emphasis on private sector involvement to maximize the impact of the funds.

High-income nations aren’t left out; MDBs project annual collective climate financing for these countries to reach $50 billion, with $7 billion allocated for adaptation efforts, and they aim to mobilize $65 billion from the private sector.

The development banks have already exceeded their initial climate targets set in 2019 for 2025, with a 25% rise in direct climate funding and a doubling of mobilized funds this year alone.

“While the scale of MDBs' financial commitments is essential, MDBs’ most significant impact comes from our ability to drive transformative change,” they said in the statement.

MDBs also called for COP29 leaders to finalize a New Collective Quantified Goal on Climate Finance (NCQG), a crucial target for realizing the Paris Agreement.

“A robust and ambitious NCQG is essential for achieving the goals of the Paris Agreement, and we urge Parties to reach a strong conclusion on this objective,” they stated.

The statement came from top MDBs worldwide, including the African Development Bank Group, the Asian Development Bank, the Asian Infrastructure Investment Bank, and the World Bank Group, among others.