By Pacific Island Times News Staff
Baku, Azerbaijan — The multilateral development banks’ annual climate financing contributions are estimated to reach $170 billion by 2030, far exceeding the initial goal.
“The (banks) have exceeded their 2025 climate finance projections set in 2019, with a 25 percent increase in direct climate finance and mobilization for climate efforts doubling over the past year,” according to a press release from the Presidency of the 29th Conference of the Parties or COP29, which is hosting this year's UN Climate Change Conference.
The banks alliance shared the estimates of contributions during the first day of the World Leaders Climate Action Summit at COP29 in Baku, Azerbaijan.
For low- and middle-income countries, the annual climate financing contributions from the group of multilateral development banks are set to cumulatively reach $120 billion by 2030, including $42 billion for adaptation.
The banks also aim to mobilize $65 billion annually from the private sector.
For high-income countries, this annual collective climate financing is projected to reach $50 billion, including $7 billion for adaption, and the MDBs aim to mobilize $65 billion from the private sector.
The estimates encompass lenders including the Asian Development Bank, the World Bank Group, the African Development Bank, the Asian Infrastructure Investment Bank, the Council of Europe Development Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the Inter-American Development Bank Group, the Islamic Development Bank and New Development Bank.
The estimates were presented during a high-level meeting hosted by COP29 President Mukhtar Babayev, who was joined by heads of states and governments as well as senior executives from the lenders and other major financial organizations, including the International Monetary Fund.
One of the key pillars of the COP29 presidency’s plan involves putting in place the financing necessary to support urgent climate action.
“Every contribution is welcome, but there is still a clear gap between where we are and where we need to be,” Babayev said.
“We are working closely with the shareholders of international financial institutions at COP29 as we seek to build the foundations of a fair and ambitious new climate finance goal,” he added.
Babayev said COP29 must deliver its tasks including climate financing that is several multiples beyond existing arrangements, adequate to the scale and urgency of the problem.
“We are committed to ensuring that Party and non-Party stakeholders have spaces available to discuss and progress such means of implementation,” he added.
The fund is now ready to accept contributions after the signing of key documents.
A ceremony on the second day of COP29 in Baku celebrated the signing of the Trustee Agreement and the Secretariat Hosting Agreement between the Board of the Fund for responding to Loss and Damage and the World Bank, as well as the Host Country Agreement between the Fund Board and the Fund Board’s host country, the Philippines. With this important milestone reached, the fund is now expected to start financing projects in 2025.
At today’s event, Sweden also pledged approximately $19 million to the fund, subject to government approval. This brings the total pledged funding to more than $720 million.
Subscribe to
our digital
monthly edition
Comments