Multilateral development banks deliver US$ 27 billion in climate change financing

By Svitlana  Pyrkalo
@pyrkalo

Multilateral development banks (MDBs) provided almost US$ 27 billion worldwide, in financing to address the challenges of climate change in 2012, according to the second joint MDB report on climate finance. The report was released today, in line with the commitment by MDBs to enhance the transparency of their investments in climate change mitigation and adaptation.

The report analyses the financial commitments by the institutions to support climate change mitigation and adaptation, and the information provided has been expanded since the first edition to include better sectoral and regional breakdowns of MDB financing.

Of the total US$ 27 billion in climate finance, 78 per cent – or over US$ 21 billion – was dedicated to mitigation, while 22 per cent – or nearly US$ 6 billion – was applied to adaptation. Of the total commitments, 8 per cent – or US$ 2 billion – came from external resources, such as bilateral or multilateral donors, including the Global Environment Facility and the Climate Investment Funds.

In terms of regional coverage, Latin America and the Caribbean received the highest share of MDB climate finance (18 per cent of total funds), while the EU-13 countries received 11 per cent. Sub-Saharan Africa received almost equal amounts of adaptation and mitigation finance (14 per cent of total funds, representing 31 per cent of total adaptation finance and 8 per cent of total mitigation finance). In regards to sector coverage, 36 per cent of adaptation finance went to the infrastructure, energy and built environment sector, while 34 per cent went towards increasing the agriculture sector’s resilience to climate change. Renewable energy took by far the largest share of mitigation finance, with 36 per cent. The discrepancy between mitigation and adaptation finance is greatest in the EU-13 and other European and Central Asian regions: 96 per cent of total climate finance commitments were applied to mitigation measures in the EU-13 countries; while 94 per cent of the total funds were applied to mitigation in other European and Central Asian regions .

Notes:
The report was prepared by a group of MDBs: 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), the World Bank (WB) and the International Finance Corporation (IFC).

The report can be viewed HERE.

Questions relating to the report should be addressed to: jointclimatefinancereport@ebrd.com

Press contacts:
ADB – Harumi Kodama hkodama@adb.org and Olivia Sylvia O. Inciong oinciong@adb.org

AfDB – Ian Hamilton I.HAMILTON@AFDB.ORG and Penelope Pontet de Fouquieres P.PONTETDEFOUQUIERES@AFDB.ORG

EBRD – Svitlana Pyrkalo pyrkalos@ebrd.com

EIB – Richard Willis r.willis@eib.org

IDB – Agustín Cáceres agustinc@IADB.ORG

IFC – Laura MacInnis LMacinnis@ifc.org

IBRD – Fiona Douglas fdouglas@worldbank.org and Robert Bisset rbisset@worldbank.org