Six leading Multilateral Development Banks (MDBs) provided in 2013 about USD 24 billion worldwide in financing for projects in developing and emerging economies that address the challenges of climate change according to the third annual joint MDB report on climate finance. The report, released on 19 September demonstrates the shared engagement expressed by the six MDBs last week to reinforce transparency of their financing in climate change mitigation and adaptation.

The new report analyses the financial commitments from the institutions to support climate change mitigation and adaptation. The information provided has been expanded to include both a more detailed sector based breakdown and a split between public and private operations, as well as a regional breakdown of MDB financing.

From the total USD 24 billion in climate finance provided in 2013, 80%, or USD 19 billion, was dedicated to mitigation and 20%, or nearly USD 5 billion, to adaptation. Of the total commitments, 9%, or USD 2 billion came from external resources, such as bilateral or multilateral donors.

Following the launch of the report, Alex Rugamba, Director of the Energy, Environment and Climate Change Department of the AfDB declared: “This year’s climate finance report shows our continued commitment to safeguard the environment while engendering socio-economic development among the Bank’s regional member countries. The Bank’s investments in low carbon development have amounted to US$3.6 billion from 2011 to 2013 while that of adaptation has amounted to US$1.5 in the same period. Despite the progressive work by ourselves and our partner MDBs, the amount of climate finance mobilized is still too low to match the challenge. It will require a concerted global effort to mobilize sufficient climate finance resources”.

The report shows that regional coverage for 2013 is quite balanced with two regions (East Asia and Pacific, Non-EU Europe and Central Asia) each receiving roughly 20% of total climate finance provided, and four regions (South Asia, Sub-Saharan Africa, Latin America and Caribbean, EU New Member States) 10-15% each.

In Africa the AfDB has not only tackled climate challenges, but it has also seized the opportunities brought about by climate change to promote climate-resilient and low-carbon development within African countries.

The African Development Bank has made a commitment to invest US$9.6 billion between 2011 and 2015 to finance its climate-smart activities. Having made investments of US$5.2 billion between 2011 and 2013, it is on target to meet, if not surpass, this commitment with an increasing number of investments.