Multilateral development banks (MDBs), including the African Development Bank (AfDB), say their collective financing for climate action hit a record high of $125 billion in 2023.
The AfDB, in a statement, said this was part of the findings from the Joint MDBs report in 2023.
The announcement of the findings of the Joint Report on MDBs heralds the 29th Session of the Conference of the Parties (COP29) to the United Nations Climate Change Conference (UNFCCC).
The conference, scheduled for November 2024 at Baku, Azerbaijan, aims to increase global climate financing and agree on a new collective target.
“Of the $125 billion, MDBs allocated $74.7 billion to low- and middle-income economies.
“Sixty-seven per cent of this ($50 billion) went to finance climate mitigation, which refers to actions that reduce, avoid, limit or sequester greenhouse gas emissions.
“While 33 per cent ($24.7 billion) was directed to climate adaptation.
“Adaptation finance involves activities and measures that reduce the risks or vulnerabilities posed by climate change, and at increasing climate resilience,” it said.
The statement said of the $74.7 billion that went to low- and middle-income countries, $28.5 billion, or roughly 38 per cent, was mobilised from the private sector.
It said given the need and urgency of climate adaptation finance, particularly in climate vulnerable low-income countries, these numbers demonstrated positive steps but remained well below what was required.
The statement quoted Anthony Nyong, AfDB’s Director for Climate Change and Green Growth, as saying that the bank increased its climate finance from nine per cent in 2016 to 55 per cent in 2023.
Nyong said the bank mobilised a total of $5.8 billion in 2023, the highest in its history. And had continued to address the pressing adaptation finance needs of regional member countries.
He said AfDB allocated about 53 per cent of its climate financing in 2023 to adaptation, thus, setting a positive example.
“This focus on adaptation, a top priority in the AfDB’s climate action agenda, reiterates the Bank’s commitment to addressing the adaptation finance gap.
“This substantial increase, primarily sourced from the Bank’s internal statutory funds, demonstrates the Bank’s steadfast commitment to delivering growth.
“It also shows AfDB’ s commitment to climate change outcomes in synergy, thereby fostering resilience and sustainable development across Africa,” Nyong said.
The Joint Report on MDBs’ Climate Finance is an annual publication incorporating MDBs’ climate financing figures, along with a clear explanation of the methodologies for tracking this financing.
The report said the Banks’ publication of climate finance statistics, aim to monitor progress towards their joint climate finance targets set following COP21, and the ambitious pledges for the period beyond 2020.
The 2023 report, coordinated by the European Investment Bank (EIB), consolidates data from nine other major MDBs.
They include: AfDB, Asian Development Bank, Asian Infrastructure Investment Bank, Council of Europe Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank, Islamic Development Bank, New Development Bank, and the World Bank Group.
By Lucy Ogalue
