The world’s six largest multilateral development banks (MDBs) deployed $81 billion last year to fund climate change programs all over the world, a recent report said.
The 2015 Joint Report on Multilateral Development Banks’ Climate Finance showed that MDBs raised over $20 billion for mitigation activities like the “reduction of greenhouse gas emissions through energy efficiency measures and the use of clean, renewable energy sources.”
The report was produced by the Asian Development Bank (ADB) and its partner MDBs the African Development Bank (AfDB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the Inter-American Development Bank Group (IDBG), and the World Bank Group (WBG).
$5 billion was used for adaptation measures that would aimed to reduce countries’ vulnerability to climate change and increase awareness and resilience.
Renewable energy received 30 percent of the mitigation finance fund, followed by lower-carbon transport with 26 percent, and energy efficiency activities, which received 14 percent.
Recipients of the adaptation funding were water and wastewater systems with 27 percent, energy, transport and related infrastructure with 24 percent, and crop and food production at 18 percent.
Of the $81 billion, $25 billion came from the MDB’s direct climate finance, and $56 billion came from other investors. Over $131 billion has been raised in climate finance since 2011.
Non-European Union (EU) member countries and Central Asia received over 20 percent of the total funding, with South Asia getting 19 percent. Latin America and the Caribbean received 15 percent; East Asia and the Pacific with 14 percent; the EU with 13 percent; Sub-Saharan Africa with 9 percent; the Middle East and North Africa also with 9 percent.
During the United Nations Climate Change Conference last year, 195 countries pledged to reduce their carbon emissions, and keep the global average temperature below 2°C above pre-industrial levels, and limit temperature increase to 1.5°C above pre-industrial levels.