Multilateral development banks, including the African Development Bank (AfDB), have reached a record $125 billion in climate financing for 2023, according to the Joint Multilateral Development Banks report.
Of this amount, $74.7 billion was directed to low- and middle-income economies, with 67% allocated for climate mitigation efforts aimed at reducing greenhouse gas emissions and 33% for climate adaptation to improve resilience against climate change.
The report also noted that 38% ($28.5 billion) of the funds for these countries were mobilized from the private sector.
Despite these gains, the report highlighted the urgent need for increased climate adaptation funding, especially in climate-vulnerable, low-income nations.
AfDB’s Director for Climate Change and Green Growth, Anthony Nyong, revealed that the bank had increased its climate finance from 9% in 2016 to 55% in 2023, mobilizing a record $5.8 billion.
Notably, 53% of AfDB’s climate funding in 2023 went toward adaptation, reinforcing its commitment to closing the adaptation finance gap and promoting sustainable development across Africa.
The 2023 Joint MDB report tracks progress toward global climate finance targets set after COP21.
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