Climate finance by multilateral development banks hits record in 2023

• Sum for low-and middle-income economies was $74.7 billion, including $24.7 billion for climate change adaptation
• MDBs offered record $125 billion last year for climate action worldwide,
• Mobilised global private finance nearly doubled to $101 billion compared to the amount provided in 2022

Multilateral development banks (MDBs) announced today that their global climate finance reached a record high of $125 billion in 2023. The combined total last year from institutions, including the Council of Europe Development Bank, is more than double the amount provided in 2019, when MDBs agreed joint climate finance targets at the United Nations Secretary General's Climate Action Summit.

Low and middle-income economies

Last year, $74.7 billion of MDB climate finance were for low- and middle-income economies. Of this sum, 67% - or $50 billion - went to climate change mitigation and $24.7 billion, or 33%, for climate change adaptation. The amount of mobilised private finance for this group of countries stood at $28.3 billion.

High-income economies

In 2023, $50.3 billion were allocated for high-income economies. Of this amount, $47.3 billion, or 94%, were for climate change mitigation and the remaining $3 billion or 6% were for climate change adaptation. The amount of mobilised private finance for high-income countries stood at $72.7 billion.

Climate finance in focus at COP29

Today's announcement comes in the run-up to the 29th session of the Conference of the Parties (COP 29) to the United Nations Climate Change Conference that will be held in Baku, Azerbaijan in November 2024. One of the key deliverables of COP29 is to increase global climate finance and reach agreement on the new collective quantified goal on climate finance.

I am proud that in 2023, the CEB provided nearly $1 billion of climate finance, i.e. about a quarter of its overall lending for the year. Integrating climate activities into our social investment projects, leveraging on our joint approach with the other MDBs, is key to secure a more inclusive and sustainable future for all,» said Governor Carlo Monticelli.

Transparent joint reporting on climate finance

The Joint Report on Multilateral Development Banks' Climate Finance is an annual collaboration to publish MDBs' climate finance figures, together with a clear explanation of the methodologies for tracking them. The joint report, along with the banks' publication of climate finance statistics in corporate media, is intended to monitor progress in relation to their joint climate finance targets such as those announced at COP21 and the greater ambition pledged for the post-2020 period.

The 2023 multilateral development bank report, coordinated by the European Investment Bank (EIB), combines data from the African Development Bank (AfDB), the Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB), the Council of Europe Development Bank (CEB), the European Bank for Reconstruction and Development (EBRD), the EIB, the Inter-American Development Bank Group (IDBG), the Islamic Development Bank (IsDB), the New Development Bank (NDB) and the World Bank Group (WBG).

The Council of Europe Development Bank (CEB) is a multilateral development bank, whose unique mission is to promote social cohesion in its 43 member states across Europe. The CEB finances investment in social sectors, including education, health and affordable housing, with a focus on the needs of vulnerable people. Borrowers include governments, local and regional authorities, public and private banks, non-profit organisations and others. As a multilateral bank with an excellent credit rating, the CEB funds itself on the international capital markets. It approves projects according to strict social, environmental and governance criteria, and provides technical assistance. In addition, the CEB receives funds from donors to complement its activities.