Multilateral Development Banks to Boost Climate Finance

Multilateral development banks (MDBs) today issued a joint statement at COP29 in Baku outlining financial support and other measures for countries to achieve ambitious climate outcomes.

MDBs estimate that by 2030, their annual collective climate financing for low- and middle-income countries will reach USD 120 billion, including USD 42 billion for adaptation, and MDBs aim to mobilize USD 65 billion from the private sector.

For high-income countries, this annual collective climate financing is projected to reach USD 50 billion, including USD 7 billion for adaptation, and MDBs aim to mobilize USD 65 billion from the private sector.

MDBs significantly exceeded their ambitious 2025 climate finance projections set in 2019, with a 25% increase in direct climate finance and mobilization for climate efforts doubling over the past year.

"It is clear we must stay the course. The green energy revolution is underway, and communities and businesses have understood that ambitious climate action is not only the right thing to do but the smart thing to do. The family of multilateral development banks is walking the talk: with our collective commitment here at COP29 to global climate action over the next five years. This also involves increasing the impact of the projects we finance - helping countries around the world to meet their climate goals and adapt to the effects of climate change," said EIB President Nadia Calviño.

"While the scale of MDBs' financial commitments is essential, MDBs' most significant impact comes from our ability to drive transformative change," the statement said. "As emphasized by the Group of Heads of MDBs in the recent Viewpoint Note: MDBs Working as a System for Impact and Scale, we MDBs are focused on amplifying our catalytic effect by enhancing the results and impact of our financing, deepening engagement with countries through platforms, supporting clients' climate ambitions, and increasing private sector mobilization."

"Rallying to the call for urgent climate action, MDBs recognize the central importance of establishing a New Collective Quantified Goal on Climate Finance (NCQG) at COP 29 in Baku. 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," the statement said.

Recognizing that quality and systemic impact must be informed by climate results, the MDBs released the Common Approach to Measuring Climate Results: Update on Indicators. The common approach, issued in April, is the first shared framework to define, measure, and link global progress on climate mitigation and adaptation with the climate results of MDB activities.

The MDBs also published their Country Platforms for Climate Action - MDB Statement of Common Understanding and Way Forward, reaffirming their joint support for efforts to foster collaboration between host countries, MDBs, donors, and the private sector. Based on country demand, MDBs will build on successful examples to support the launch of new platforms, while deepening collaboration with partners including the International Monetary Fund.

The statement was issued by the African Development Bank Group, the Asian Development Bank, the Asian Infrastructure Investment Bank, the Council of Europe Development Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the Inter-American Development Bank, the Islamic Development Bank, the New Development Bank, and the World Bank Group.

EIB at COP29

Find an overview of EIB activities at COP29 on our website. The EIB has a pavilion in the side event area of the blue zone and is running a series of events on numerous topics. You will find the full agenda here. You are welcome to join to watch the sessions either live or later at your convenience. In addition, the EIB shares a pavilion with the group of multilateral development banks. You will find the full agenda here.

Background information

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.

The EIB Group has been transforming itself into the climate bank through more than a decade of progress and substantial investment, tied to several milestones: the world's first green bonds in 2007, our first Climate Strategy in 2015 in the wake of COP21 in Paris, our new Energy Lending Policy in 2019 (ending support for fossil fuel energy projects), and then in 2020 the Climate Bank Roadmap.

• In 2023, EIB Group green finance reached nearly €50 billion, more than double the amount of green finance provided in 2019, when European countries asked the EIB to strengthen its role as the climate bank.
• In 2021, the EIB became the first MDB to align our financial activities with the Paris Agreement.
• With its Climate Bank Roadmap the EIB Group is on track to support €1 trillion of investment in climate action and environmental sustainability through the critical decade, 2021-2030.
• The EIB has committed to increase investment in climate action and environmental sustainability to more than 50% of annual EIB lending by 2025 - last year that was exceeded with 60%.
• In August 2024, the EIB passed the €100 billion mark of Climate Awareness Bonds and Sustainable Awareness Bonds issuance. This makes the EIB the world's largest issuer of green bonds as well as assured sustainable bonds with dedicated use of proceeds among multilateral development banks. To meet the needs of a broad investor base, the EIB has issued these bonds in 23 currencies, a market record.

EIB Global is the EIB Group's specialised arm dedicated to operations outside the European Union, and a key partner of the European Union's Global Gateway strategy. We aim to support at least €100 billion of investment by the end of 2027, around one-third of the overall target of Global Gateway. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to local communities, companies and institutions through our offices across the world.

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