Six multilateral development banks (MDBs) have launched the fourth edition of their annual joint report on climate finance.
The report finds that, in 2014, the MDBs committed more than US$28.35 billion in financing to developing countries and emerging economies, with US$23.28 billion dedicated to mitigation efforts, and US$5.07 billion to adaptation work.
16 June 2015: Six multilateral development banks (MDBs) have launched the fourth edition of their annual joint report on climate finance. The report finds that, in 2014, the MDBs committed more than US$28.35 billion in financing to developing countries and emerging economies, with US$23.28 billion dedicated to mitigation efforts, and US$5.07 billion to adaptation work.
The ‘2014 Joint Report on Multilateral Development Banks’ Climate Finance’ is based on a joint MDB approach to tracking and reporting that only counts project components directly providing mitigation or adaptation co-benefits. It shows that, compared to 2013, total climate financing by MDBs in 2014 increased by 19%.
Of the total commitments in 2014, 91% came from the MDBs’ own resources and 9% from external resources, including bilateral or multilateral donors, the Global Environment Facility (GEF), and the Climate Investment Funds (CIF).
Of mitigation funding, 35% went to renewable energy, 27% to sustainable transport and 22% to energy efficiency. Of adaptation funding, 36% was destined to agriculture and ecological resource projects, and 40% to projects relating to infrastructure, energy and the built environment.
In regional terms, South Asia received 21% of the total, followed by: Latin America and the Caribbean (17%); non-EU Europe and Central Asia (16%); Sub-Saharan Africa (15%); and East Asia and the Pacific (10%).
New information compared to previous years’ reports includes: an overview of MDB climate finance from 2011-2014; information on the financial instruments used by MDBs for climate finance; and regional coverage on small island developing States (SIDS) and least developed countries (LDCs).
The report was produced by the African Development Bank (AfDB), the Asian Development Bank (ADB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the Inter-American Development Bank (IDB), and the International Finance Corporation (IFC) and the World Bank of the World Bank Group. The report is intended to guide decision making at the Third International Conference on Financing for Development (FfD3) in Addis Ababa, Ethiopia, in July 2015, and provide data for the UN Paris Climate Change Conference in December 2015. [World Bank Press Release] [Publication: 2014 Joint Report on Multilateral Development Banks’ Climate Finance] [IISD RS Story on 2013 Joint MDB Report] [SloCat Press Release]