By Yandra França (CFC-GS/UFPA)
In summary, Multilateral Development Banks (MDBs) are public financial institutions founded and maintained with contributions from member countries, which finance projects aimed at the economic and social development of client countries. Currently, there are about 30 MDBs, both regional and global (BRAZIL, 2023).
At COP29, held in Baku, MDBs made a financial commitment to help countries achieve at least ambitious climate results. They committed to reaching, by 2030, the amount of US$ 120 billion annually in collective climate finance for low- and middle-income countries and US$ 50 billion annually for high-income countries. Thus, within climate finance, they become crucial in offering public resources and mobilizing private investments for mitigation and adaptation projects.
It is possible to finance everything from renewable energy to resilient infrastructure, integrating climate and sustainable development goals. According to a report released by the Inter-American Development Bank (2025), global climate finance by MDBs increased by 10% last year, reaching a record US$137 billion, with most of it going to low- and middle-income economies. Financing for these countries has more than doubled over the last five years, with 69% allocated to mitigation and 31% to adaptation to climate change.
At the same time, private financing mobilized by these banks to combat global warming reached US$134 billion in 2024, an increase of 22% compared to 2023 (INTER-AMERICAN DEVELOPMENT BANK, 2025). High-income economies reached a total of US$ 51.5 billion, of which 90% was allocated to mitigation, while only 10% was allocated to adaptation. These figures prove the effectiveness of the attempt to achieve the goal set at COP29.
However, where did all this money go? Within the mitigation sector, the mining and metal production sector for climate action received the largest volume of investments, totaling US$ 102 million, followed by the energy sector, with US$ 41,014 million. As for adaptation, US$ 927 million was allocated to agricultural and ecological resource projects. Gradually, the region that received the most climate finance was the European Union, with a total of US$ 45.22 million. Still regarding the figures observed, the financial instrument most used to support these countries was policy-based lending.
Historically, the World Bank has made the largest contribution and leads investments in climate mitigation, while the European Investment Bank carries a high volume in mobilizing private capital. Thus, together, these banks are responsible for much of the growth observed in investment volume.
In short, multilateral banks have played a key role in the race for global climate transition. However, there is still a global trend to invest much more in mitigation, mainly using loans—albeit with expanded social policies—to achieve tangible results. Finally, data contained in reports from some multilateral banks—such as the IDB—on projects, amounts, and countries receiving support will be available in the new update of the Climate Finance Center for the Global South (CFC-GS) Tracker.
REFERENCES
BRASIL. Ministério da Fazenda. Bancos Multilaterais de Desenvolvimento. Brasília: Ministério da Fazenda, 2023.
BANCO INTERAMERICANO DE DESENVOLVIMENTO. Joint Report on Multilateral Development Banks Climate Finance 2025. Washington, DC: BID, 2025.
JOINT SUMMARY ON MULTILATERAL DEVELOPMENT BANKS CLIMATE FINANCE. Joint Summary on MDB Climate Finance 2024. Washington, DC: MDBs, 2024.
