Six leading multilateral development banks (MDBs) provided almost $24 billion worldwide in financing in 2013 for projects in developing and emerging economies that address the challenges of climate change, according to the third annual joint MDB report on climate finance.
The Asian Development Bank (ADB) said the report, released Friday, “demonstrates the shared engagement expressed by the six MDBs last week to reinforce transparency of their financing in climate change mitigation and adaptation.”
The African Development Bank, the Asian Development Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the Inter-American Development Bank, and the World Bank Group all helped in preparing the report.
The new report analyses the financial commitments from the institutions to support climate change mitigation and adaptation, and the information provided has been expanded to include both a more detailed sector based breakdown and a split between public and private operations, as well as a regional breakdown of MDB financing.
“ADB shares the commitment of other MDBs to enhance climate finance action in support of low-carbon and climate-resilient growth in developing countries. One of our key thrusts is through Finance++, where ADB’s own finance is used to leverage resources through partnerships as well as providing knowledge to maximize and accelerate development effectiveness,” said Bindu N. Lohani, ADB’s vice-president for Knowledge Management and Sustainable Development.
From the total $24 billion in climate finance provided in 2013, 80 percent, or $19 billion, was dedicated to mitigation and 20 percent, or nearly $5 billion, to adaptation. Of the total commitments, 9 percent, or $2 billion, came from external resources, such as bilateral or multilateral donors.
The regional coverage for 2013 is quite balanced with two regions (East Asia and the Pacific, Non-European Union Europe and Central Asia) each receiving roughly 20 percent of total climate finance provided, and four regions (South Asia, Sub-Saharan Africa, Latin America and the Caribbean, European Union New Member States) 10 percent—15 percent each, the ADB said.
In terms of investment in different sectors, 22 percent of adaptation finance supported coastal and riverine infrastructure including built flood protection infrastructure, and 30 percent went to the category comprising energy, transport, and other built environment and infrastructure. In mitigation finance, renewable energy still takes by far the largest share, with 25 percent of the total.
The MDBs believe that setting meaningful targets and identifying opportunities for climate finance requires consistent and robust data.
“This report is, therefore, based on the common climate finance tracking methodology that MDBs have developed. MDBs will continue reaching out to other interested parties, as they have done throughout this year and in earlier years, to share knowledge and experience on climate finance tracking, the ADB statement said.
“The MDBs believe their experiences in developing and reporting using the joint approach will pave the way for continued partnership with other financial institutions, including the members of the International Development Finance Club, the United Nationals Framework Convention on Climate Change, and others, and will continue to work closely with them,” it added.