A group of leading Multilateral Development Banks (MDBs) estimated they could increase climate financing to $170bn/yr by 2030, they said today at the UN's Cop 29 climate conference in Baku, Azerbaijan.
The group, made up of the World Bank and nine other MDBs including the European Investment Bank (EIB), today estimated their annual financing for low- and middle-income countries at $120bn/yr by 2030, of which $42bn for adaptation. For high income countries the group plans to reach financing of $50bn/yr, including $7bn for adaptation.
The ten MDBs provided a total of $125bn of financing in 2023, up on $100bn/yr in 2022. Of last year's funding $75bn went to low- and middle-income countries and $50bn to high-income countries.
The MDBs hope to leverage an additional $130bn/yr of financing from the private sector, split equally between high-income countries on the one hand and middle- and low-income ones on the other. The split between private and MDB finance implies that the organisations are hoping to increase the efficiency with which they mobilise private finance, according to Melanie Robinson, Global Climate, Economics and Finance Director at NGO World Resources Institute.
Financing from MDBs will be one of the main layers of climate financing contributing towards the New Collective Quantified Goal (NCGQ), a new goal on international climate financing for developing countries.
Negotiations on the NCQG began today in Baku, with countries' positions "far apart," Robinson said. Participants' stances still differ on the amount of money which should be aimed for, and on which countries should contribute, which is to be expected at this stage of the negotiations, she said.
