MDB Climate Finance Hit Record High of US$35.2 billion in 2017

Stocks and Financial Services Press Releases Thursday June 14, 2018 08:56
WASHINGTON--14 Jun--World Bank
An increase of nearly 30 per cent on the previous year, boosting projects that help developing countries cut emissions and address climate risks.
WASHINGTON, June 13, 2018 – Climate financing by the world's six largest multilateral development banks (MDBs) rose to a seven-year high of $35.2 billion in 2017, up 28 per cent on the previous year.

The MDBs' latest joint report on climate financing said $27.9 billion, or 79 per cent of the 2017 total, was devoted to climate mitigation projects that aim to reduce harmful emissions and slow down global warming.

The remaining 21 per cent, or $7.4 billion, of financing for emerging and developing nations was invested in climate adaptation projects that help economies deal with the effects of climate change such as unusual levels of rain, worsening droughts and extreme weather events.

In 2016 climate financing from the MDBs had totalled $27.4 billion.

The latest MDB climate finance figures are detailed in the 2017 Joint Report on Multilateral Development Banks' Climate Finance, combining data from 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 (World Bank, IFC and MIGA). These banks account for the vast majority of multilateral development finance. In October 2017 the Islamic Development Bank joined the MDB climate finance tracking groups, and its climate finance figures will be included in joint reports from 2018 onwards.

Climate funds such as the Climate Investment Funds (CIF), the Global Environment Facility (GEF) Trust Fund, the Global Energy Efficiency and Renewable Energy Fund (GEEREF), the European Union's funds for Climate Action, the Green Climate Fund (GCF) and others have also played an important role in boosting MDB climate finance. As well as the $35.2 billion of multilateral development finance, the same adaptation and mitigation projects attracted an additional $51.7 billion from other sources of financing last year.

Of the 2017 total, 81 per cent was provided as loans. Other types of financial instruments included policy-based lending, grants, guarantees, equity and lines of credit.
Latin America, Sub-Saharan Africa and East Asia and the Pacific were the three major developing regions receiving the funds. The report contains a breakdown of climate finance by country.

The sharp increase came in response to the ever more pressing challenge of climate change. Calls to galvanise climate finance were at the heart of events such as the One Planet Summit in Paris in December 2017, two years after the historic Paris Agreement was adopted. Multilateral banks began publishing their climate investment in developing countries and emerging economies jointly in 2011, and in 2015 MDBs and the International Development Finance Club agreed joint principles for tracking climate adaptation and mitigation finance.

Climate finance addresses the specific financial flows for climate change mitigation and adaptation activities. These activities contribute to make MDB finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development, in line with the Paris Agreement. The MDBs are currently working on the development of more specific approaches to reporting their activities and how they are aligned with the objectives of the Paris Agreement.

"For the World Bank Group, 2017 was a record-setting year on climate finance as a result of a deliberate effort over the past few years to mainstream climate considerations into our operations. This upward trend is continuing," said World Bank Senior Director for Climate Change John Roome. "The Multilateral Development Banks are also playing a key role in leveraging private sector finance which will be critical to meeting the objectives of the Paris Agreement. Last year alone, the WBG crowded in $8.6 billion in private financing for climate change, which is up 27% from 2016."


Latest Press Release

Photo Release: KBank teams up with PTTOR to offer first KBank Service at Cafe Amazon, PTT Service Station (Ekamai-Ramintra)

Ms. Jiraporn Khaosawas (1st from left), Chief Executive Officer and Managing Director of PTT Oil and Retail Business PCL. (PTTOR), and Mr. Patchara Samalapa, KBank President, recently introduced "KBank Service" or deposit service at Cafe Amazon, PTT...

SHREIT announces distribution for unitholders of 0.2561 baht per unit All three existing hotels continue to generate excellent revenues in past three months Results from first 10 months of 2018 yield total distribution of 0.5997 baht per unit

Strategic Hospitality Extendable Freehold and Leasehold Real Estate Investment Trust (SHREIT) on 19 November 2018 announced distribution payment for the past four months (1 August - 31 October 2018) to unitholders at the rate of 0.2561 baht per unit. And...

KTC joins forces with Bangkok Airways Airline in launching seven brand-new KTC Bangkok Airways credit cards beyond the power of boutique, all-in-one cards.

KTC jointly with Bangkok Airways, celebrate their 13th partnership anniversary and Bangkok Airways' 50th anniversary, transforming seven KTC – Bangkok Airways credit cards to cover all card alliance networks including MasterCard, VISA and JCB,...

SEC Dates CAZ Filing Plans to Sell 80 Million of IPO Shares To Increase Working Capital and Serve More Future Works

The Securities and Exchange Commission Thailand (SEC) dated the filing of CAZ (Thailand) Public Company Limited or "CAZ" for listing in the Market for Alternative Investment (MAI). The Company plans to sell 80 million of initial public offering (IPO)...

UnionPay Launches UnionPay Celebrating You Campaign Offering exclusive privileges that let customers save more this festive season

Photo Caption – Mr. Pingfu Zheng (third from left), Thailand Country Manager, Union Pay International and Mr. Thanakorn Puriwekin (second from left), Director and Chief Films Officer, Major Cineplex Group, attended the launch event for UnionPay...

Related Topics