According to their new annual report, climate financing from multilateral development banks (MDBs) in low- and middle-income countries went up by 21% last year, reaching 103 billion USD.
According to their new annual report, climate funding from multilateral development banks (MDBs) in low- and middle-income countries went up by 21% last year, reaching 103 billion USD.
Funding from MDBs dedicated to adaptation in low- and middle-income countries rose by 31% to stand at 35 billion USD, while funding for mitigation increased by 16%, reaching 68 billion USD.
MDBs are on track to meet the climate financing targets they set for 2030 across all the countries where they operate.
Multilateral development banks (MDBs), including the Inter-American Development Bank Group (IDB Group), pushed their climate financing to record levels in 2025, strengthening their role in supporting sustainable and climate-resilient economies. Climate financing from MDBs in low- and middle-income countries increased by 21% compared to the previous year, reaching a historic $103 billion, while climate financing from MDBs across all their countries of operation rose by 19% to hit a record $163 billion.The results, published on July 11 in the 2025 Joint Report on Climate Financing from Multilateral Development Banks, confirm that MDBs are on track to meet the 2030 projections announced at the United Nations Climate Change Conference (COP29), held in Baku in 2024.
In low- and middle-income countries, MDB climate financing has doubled over the past five years. Out of this $103 billion, the largest share went to mitigation, with $68 billion, while funding for adaptation continued to grow strongly, reaching $35 billion. Mobilization of private financing in these countries amounted to $35 billion.In high-income economies, MDB climate financing also remained significant in 2025, reaching or even exceeding the targets set for 2030 five years ahead of schedule. It mainly supported mitigation efforts with $53 billion, along with an additional $7 billion dedicated to targeted adaptation investments. Private finance mobilization in these countries reached $80 billion.
To view the joint summary report providing an overview of the 2025 results, click here.
MDB climate financing
At COP29 in Baku, the MDBs presented their financial commitments aimed at helping countries achieve ambitious climate goals. By 2030, they plan to collectively provide $120 billion per year in climate financing to low- and middle-income countries, including $42 billion for adaptation, while also mobilizing an additional $65 billion each year from the private sector. For high-income countries, the MDBs plan to provide $50 billion per year in climate financing by 2030, including $7 billion for adaptation, while also mobilizing an additional $65 billion from private financing.On the occasion of COP30, held in Belém, the MDBs reaffirmed their commitment to continue working together as a system to support their clients and help them take advantage of the opportunities offered by smart climate action.
Boosting transparency
The MDBs are continuing their joint digitalization efforts to improve transparency, accessibility, and ease of use of climate finance data.
Launched in April 2026, the pilot version of the MDB Climate Finance Dashboard complements the joint summary report by offering more detailed data, finer breakdowns, and all the harmonized methodologies used by the MDBs. With interactive tables and graphical representations, stakeholders can explore climate finance data more flexibly and intuitively, which improves both understanding and use.
Joint MDB Report on Climate Finance
The 2025 MDB report on climate finance is coordinated and prepared for publication by the EIB, with support from the European Bank for Reconstruction and Development (EBRD). It brings together data from the African Development Bank (AfDB), the Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB), the Council of Europe Development Bank (CEB), the EBRD, the EIB, the Inter-American Development Bank Group (IDB Group), the Islamic Development Bank (IsDB), the New Development Bank (NDB), and the World Bank Group (WBG).
