Azernews.Az

Nazrin Abdul

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On the first day of the World Leaders Climate Action Summit at COP29, a coalition of leading multilateral development banks (MDBs) unveiled ambitious projections for climate financing aimed at low- and middle-income countries, Azernews reports.

The MDBs, which include prominent institutions like the World Bank Group, the Asian Development Bank (ADB), and the African Development Bank (AfDB), estimate that their combined climate finance contributions will reach USD $120 billion annually by 2030, with USD $42 billion earmarked specifically for adaptation efforts.

The MDBs' commitments also include a goal of mobilizing USD $65 billion annually from the private sector, marking a major push to leverage private finance for climate action in vulnerable nations.

For high-income countries, the MDBs expect their collective climate financing to total USD $50 billion annually, with USD $7 billion allocated to adaptation. They also aim to mobilize an additional USD $65 billion from private sector investments.

The estimates were presented during a high-level meeting in Baku, hosted by COP29 President Mukhtar Babayev, and attended by heads of state, senior executives from international financial institutions, and representatives from organizations like the International Monetary Fund (IMF). The meeting highlighted the growing importance of financial support to meet the scale of the global climate crisis.

Progress in climate finance mobilization

The announcement comes as part of ongoing efforts by the MDBs to significantly increase their climate finance efforts. Notably, the MDBs have already exceeded their 2025 climate finance targets, with a 25% increase in direct climate finance and a doubling of efforts to mobilize funds for climate projects over the past year.

In his remarks, COP29 President Babayev acknowledged the positive progress but emphasized that more must be done to meet the full scale of global climate challenges. “Every contribution is welcome, but there is still a clear gap between where we are and where we need to be,” he said. “We are working closely with the shareholders of international financial institutions at COP29 to lay the groundwork for a fair and ambitious new climate finance goal.”

Babayev stressed that the urgency of the climate crisis requires financing that goes well beyond current arrangements. “We must deliver what the world expects, including climate financing that is several multiples beyond existing arrangements, adequate to the scale and urgency of the problem,” he added.

A call for increased ambition

As the COP29 summit continues, the push for a new, more ambitious climate finance framework remains a key priority for negotiators. The COP29 Presidency is committed to ensuring that both Party and non-Party stakeholders have the space to discuss and implement new solutions for climate finance that can support the most vulnerable nations and accelerate global climate action.

The meeting in Baku underscored the critical role of MDBs in bridging the climate finance gap and facilitating the investments necessary to drive urgent and transformative climate action worldwide.