Multilateral development banks (MDBs) convened today at COP29 in Baku, where they collectively issued a significant joint statement detailing their comprehensive financial support and strategic measures aimed at assisting countries in realizing ambitious climate goals.
Looking ahead to 2030, MDBs project that their unified annual climate financing for low- and middle-income nations will ascend to an impressive USD 120 billion. This figure includes USD 42 billion specifically allocated for adaptation initiatives, while MDBs have set a goal to mobilize an additional USD 65 billion from the private sector to reinforce these efforts.
For high-income countries, MDBs anticipate that their annual collective climate financing will amount to USD 50 billion, which notably includes USD 7 billion earmarked for adaptation purposes. Similarly to their support for lower-income nations, MDBs seek to enlist USD 65 billion from private sector partners to catalyze further climate action.
In a notable achievement, MDBs have significantly surpassed their original climate finance targets set for 2025 in 2019, illustrating a commitment to climate action with a remarkable 25% uptick in direct climate financing as well as a doubling of mobilization efforts for climate projects in the past year.
“While the scale of MDBs’ financial commitments is essential, MDBs’ most significant impact comes from our ability to drive transformative change,” the statement emphasized. “As highlighted by the recent Viewpoint Note: MDBs Working as a System for Impact and Scale, we MDBs are committed to amplifying our catalytic effect. This involves enhancing the results and impact of our financing, deepening engagement with countries through various platforms, supporting clients’ climate ambitions, and significantly increasing private sector mobilization.”
In response to the urgent call for immediate climate action, MDBs have recognized the critical need for the establishment of a New Collective Quantified Goal on Climate Finance (NCQG) during COP 29 in Baku. Achieving a robust and ambitious NCQG is paramount for meeting the aspirations of the Paris Agreement, and MDBs strongly encourage all Parties involved to strive for a strong conclusion on this pivotal objective.
To ensure that quality and systemic impact are informed by tangible climate results, the MDBs have released the Common Approach to Measuring Climate Results: Update on Indicators. This common approach, introduced in April, represents the first unified framework designed to define, measure, and link global progress on climate mitigation and adaptation with the measurable climate outcomes of MDB activities.
Furthermore, the MDBs published their Country Platforms for Climate Action – MDB Statement of Common Understanding and Way Forward. This statement reaffirms their collective commitment to boosting collaboration between host countries, MDBs, donors, and private sector entities. In response to specific country demands, MDBs intend to build on successful precedents to support the establishment of new platforms, while deepening cooperative efforts with partners such as the International Monetary Fund.
**Interview with Dr. Elena Martinez, Head of Climate Finance at the Multilateral Development Banks (MDBs)**
**Interviewer:** Thank you for joining us today, Dr. Martinez. We’re excited to discuss the recent developments from COP29 in Baku. Could you summarize the key points from the joint statement issued by the MDBs regarding climate financing?
**Dr. Martinez:** Thank you for having me. At COP29, we announced a significant commitment to support countries in achieving their climate goals. We project that by 2030, our annual climate financing for low- and middle-income nations will reach USD 120 billion, with USD 42 billion specifically dedicated to adaptation initiatives. Additionally, we aim to mobilize USD 65 billion from the private sector to bolster these efforts.
**Interviewer:** That’s an ambitious target! How does the approach differ for high-income countries compared to lower-income nations?
**Dr. Martinez:** Great question. For high-income countries, we anticipate collective climate financing of around USD 50 billion, with USD 7 billion for adaptation efforts. While our strategy remains consistent—leveraging both MDB resources and private sector partnerships—the specific allocation reflects the varying needs and capacities of these different income groups.
**Interviewer:** You mentioned exceeding previous climate finance targets. Can you elaborate on this achievement and its implications?
**Dr. Martinez:** Absolutely. We’ve seen a remarkable 25% increase in direct climate financing and have doubled our mobilization for climate projects over the past year alone. This is a clear demonstration of our commitment and capability to drive transformative change in the fight against climate change, surpassing our initial targets set in 2019 for 2025.
**Interviewer:** What do you believe is the most crucial element of the MDBs’ efforts in addressing climate change?
**Dr. Martinez:** While financial commitments are essential, I believe our greatest impact lies in our ability to catalyze transformative change across sectors. By acting as a system of support, we can foster collaboration and innovation that enables countries to build resilient and sustainable futures.
**Interviewer:** Thank you for your insights, Dr. Martinez. It sounds like MDBs are making substantial strides in promoting global climate resilience.
**Dr. Martinez:** Thank you! We’re committed to this cause and optimistic about what we can accomplish collectively.
