By Lucy Ogalue
Thank you for reading this post, don't forget to subscribe!Abuja, Sept. 23, 2024 (NAN) — Multilateral development banks (MDBs), including the African Development Bank (AfDB), have collectively reached a record $125 billion in climate finance for 2023, according to a Joint MDBs report.
The AfDB, in a statement, revealed that this figure marked a historic high for climate action financing. The findings come as the world prepares for the 29th United Nations Climate Change Conference (COP29), scheduled for November in Baku, Azerbaijan. The conference is expected to focus on increasing global climate financing and setting new collective targets for action.
“Of the $125 billion, MDBs allocated $74.7 billion to low- and middle-income economies,” the statement said. “Sixty-seven per cent of this, amounting to $50 billion, went toward climate mitigation — efforts aimed at reducing, avoiding, or limiting greenhouse gas emissions. The remaining 33 per cent, or $24.7 billion, was directed to climate adaptation, which involves measures to reduce climate risks and increase resilience.”
The report highlighted that of the $74.7 billion allocated to low- and middle-income countries, $28.5 billion (roughly 38%) was mobilized from the private sector. This funding is crucial, particularly for climate-vulnerable low-income countries, but the statement noted that more needs to be done.
Anthony Nyong, AfDB’s Director for Climate Change and Green Growth, stated that the bank increased its climate finance allocation from 9% in 2016 to 55% in 2023. Nyong added that the AfDB mobilized a total of $5.8 billion in 2023, the highest in the bank’s history.
“Our focus on adaptation, which is a top priority in the AfDB’s climate action agenda, demonstrates our commitment to addressing the adaptation finance gap,” said Nyong. “The substantial increase in financing, sourced primarily from our internal statutory funds, underscores our dedication to fostering resilience and sustainable development across Africa.”
The Joint MDBs report on climate finance is an annual publication that tracks climate financing by major MDBs, including the AfDB, the Asian Development Bank, and the World Bank Group. The 2023 report was coordinated by the European Investment Bank (EIB) and consolidated data from nine other MDBs. These reports help monitor progress toward joint climate finance targets set after COP21 and further climate pledges post-2020.
NAN reports that MDBs continue to play a crucial role in mobilizing global financing to combat climate change and drive sustainable development worldwide.
