The 2018 edition of the joint report on climate finance by the world’s largest multilateral development banks (MDBs) reveals that nearly $43.1 billion was allocated to developing and emerging economies in 2018 to boost projects that help these nations cut down on emissions and address climate risks, especially after the adoption of the Paris Agreement in 2015. The Paris Agreement is a global climate change plan that was agreed upon by the United Nations at the Paris Climate Conference in 2015.

The figure shows an increase of nearly $7.9 billion from the previous year, where climate finance was $35.2 billion. Experts think that such an increase came after strongly addressing climate risks worldwide and making people aware of how climate change is overly affecting the underdeveloped nations.

In 2018, MDBs reported a total of $30,165 million in financial commitments to the mitigation of climate change, with $28,068 million from the MDBs’ accounts and $2,097 million from MDB managed external resources.

The eighth edition of the ‘Joint Report on Multilateral Development Banks’ Climate Finance’, is an overview of the climate finance committed in 2018 by the African Development Bank, the Asian Development Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the Inter-American Development Bank Group and the World Bank Group.  The 2018 report also summarizes information on climate finance tracking from the Islamic Development Bank (IsDB), which joined the group in October 2017.

Source: The eighth edition of the Joint Report on Multilateral Development Banks’ Climate Finance

In 2018, IsDB climate finance was estimated to be $351 million, which is nearly 42% of the approvals in the reported sectors, of which $226 million (65%) was for climate change mitigation, $77 million (22%) was dedicated to climate change adaptation, and $47 million  (13%) had dual benefits of mitigation and adaptation.

The report also shows that in 2018, the regions of Sub-Saharan Africa, Latin America and the Caribbean, and South and East Asia were the top three to invest in MDB climate finance. In addition to the geographical distribution of climate commitments by regions, the report shows that climate financing from regions like Sub-Saharan Africa totals to $8,957 million, followed by Latin America and the Caribbean at $8,770 million, South Asia at $6,958 million, Non-EU Europe and Central Asia with $5,128 million, East Asia, Pacific at $5,062 million, and Middle East, North Africa at $4,310 million.

Source: The eighth edition of the Joint Report on Multilateral Development Banks’ Climate Finance

According to the report, India received climate finance of $3,703 million in 2018 while in 2017, it received $2,678 million.

The AfDB, ADB, EBRD, EIB, IDBG, and WBG have been reporting jointly on climate finance since the first edition published in 2012, which reported figures for 2011.

Together, they have committed almost $237 billion in climate finance during the past eight years in developing and emerging economies. Based on the jointly developed methodology for climate finance tracking, in 2015, MDB set their climate goals to be achieved by 2020.

Earlier, Mercom reported that ADB, which is a part of the MDB report, in collaboration with Southeast Asian governments and other development financiers, launched the “ASEAN (Association of Southeast Asian Nations) Catalytic Green Finance Facility,” a new initiative which aims to mobilize over $1 billion in green infrastructure investments across Southeast Asia. The facility includes $75 million from the ASEAN Infrastructure Fund (AIF), $300 million from ADB, €300 million ($336 million) from KfW, €150 million ($168 million) from the European Investment Bank, and €150 million ($168 million) from Agence Française de Développement.