Multilateral Development Banks Agree to Reinforce Climate Financing in Advance of UN Summit
MANILA, PHILIPPINES – The world’s six multilateral development banks today reaffirmed their shared commitment to lead by example by continuing to reinforce and further develop climate financing through a joint statement issued in advance of the United Nations Secretary-General’s Climate Summit being convened in New York on 23 September.
The African Development Bank, Asian Development Bank (ADB), European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank, and World Bank Group together pledged to maintain a strong institutional focus on climate change. This will include leveraging additional private sector investment, continuing to innovate and promote more robust and transparent climate finance tracking and reporting.
“In a recent review of its overall strategy, Strategy 2020, ADB pledged to further scale up support for climate change adaptation and mitigation,” said Bindu N. Lohani, ADB’s Vice-President for Knowledge Management and Sustainable Development. “We will continue to invest $2 billion annually in clean energy and sharpen our focus on adaptation by including climate risk management in all projects, including screening all investments early on and conducting vulnerability assessments and incorporating climate resilience designs where needed.”
Since they began jointly tracking climate finance flows in 2011, the six multilateral development banks have delivered nearly $75 billion in financing to help developing countries and emerging economies respond to the challenges of climate change. On average, about 80% of this lending has supported investment in mitigation activities and 20% to adaptation.
The statement also confirmed the intention of the multilateral development banks to count and track climate finance investments in the same way. This is expected to enable greater cooperation and shared experience between the banks and other financial bodies involved in climate action.
With their ability to catalyze public and private funds, the multilateral development banks have successfully attracted and deployed climate financing to support low-carbon resilient growth in developing countries and emerging economies.