<\/p>\n
According to the 2025 Joint Summary Report on Multilateral Development Banks\u2019 Climate Finance, climate finance directed to low- and middle-income countries rose by 21% year-on-year to a record $103 billion. Across all countries of operation, total MDB climate finance increased by 19% to an all-time high of $163 billion.<\/p>\n
<\/p>\n
The report indicates that MDBs remain on track to achieve the climate finance targets announced at the COP29 climate conference in Baku during 2024.<\/p>\n
<\/p>\n
African Development Bank (AfDB) Director for Climate Change and Green Growth Anthony Nyong said climate action and economic development are closely linked across Africa. \u201cDevelopment and climate action are inseparable for Africa,\u201d said Nyong. \u201cScaling climate finance is essential to helping African countries strengthen resilience and accelerate the transition to low-carbon economies in a just and inclusive manner.\u201d<\/p>\n
<\/p>\n
Within low-and middle-income countries, climate finance has doubled over the past five years. Of the $103 billion provided during 2025, mitigation projects accounted for $68 billion, while adaptation finance reached $35 billion as countries increased efforts to prepare for climate-related risks.<\/p>\n
<\/p>\n
MDBs also helped mobilise an additional $35 billion in private-sector investment for climate-related projects in developing economies.<\/p>\n
<\/p>\n
Support remained strong in high-income countries, where MDB climate finance totalled $60 billion in 2025. Of this amount, $53 billion was allocated to mitigation activities and $7 billion to adaptation initiatives. Private-sector mobilisation reached $80 billion.<\/p>\n
<\/p>\n
The AfDB reported that climate finance represented 54% of total project approvals in 2025, equivalent to approximately $5.93 billion.<\/p>\n
<\/p>\n
Adaptation funding accounted for around 58% of the Bank\u2019s climate finance portfolio, reflecting the continent\u2019s urgent need to strengthen resilience to droughts, floods and other climate-related challenges.<\/p>\n
<\/p>\n
The Bank also surpassed its commitment to mobilise $25 billion in climate finance between 2020 and 2025, reaching approximately $25.5 billion over the period.<\/p>\n
<\/p>\n
At COP29, MDBs committed to scaling climate finance to support low-carbon and climate-resilient development. Under the collective target, MDBs aim to provide $120 billion annually to low- and middle-income countries by 2030, including $42 billion for adaptation, while mobilising an additional $65 billion a year from the private sector.<\/p>\n
<\/p>\n
For high-income countries, MDBs project annual climate finance of $50 billion by 2030, including $7 billion for adaptation, alongside $65 billion in mobilised private investment.<\/p>\n
<\/p>\n
The report also highlights efforts to improve transparency through the launch of the MDB Climate Finance Dashboard in April 2026. The platform provides detailed data, methodologies and interactive visualisations designed to improve access to climate finance information.<\/p>\n
<\/p>\n
The climate finance report combines data from major MDBs, including the AfDB, European Investment Bank, World Bank Group, Asian Development Bank, Inter-American Development Bank Group and several other international financial institutions.<\/p>\n
<\/p>\n
MDBs reaffirmed at COP30 in Bel\u00e9m that they will continue working together to help countries advance climate-smart development while strengthening resilience to growing environmental and economic challenges.<\/p>\n
<\/p>\n
–AfDB\/ChannelAfrica–<\/p>\n","protected":false},"featured_media":39599,"template":"","meta":{"_acf_changed":false},"news-type":[44],"class_list":["post-39598","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-finance","entry"],"acf":{"short_description":"Multilateral development banks (MDBs) provided record levels of climate finance in 2025, increasing support for climate resilience, clean energy and sustainable development as countries grapple with the growing impacts of climate change.\r\n","published_date":"","news_description":"Multilateral development banks (MDBs) provided record levels of climate finance in 2025, increasing support for climate resilience, clean energy and sustainable development as countries grapple with the growing impacts of climate change.","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/39598","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":1,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/39598\/revisions"}],"predecessor-version":[{"id":39600,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/39598\/revisions\/39600"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/39599"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=39598"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=39598"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}