Multilateral development banks (MDBs) delivered a record $137 billion in climate finance in 2024, a 10% increase compared to the previous year. The figure, published in the Joint Report on MDBs’ Climate Finance, underscores the urgency of global investment in the energy transition and the critical role these institutions play in closing the climate finance gap.
Over $85 billion was directed to low- and middle-income countries, representing a 14% increase from 2023. This shift toward emerging economies reflects both their heightened climate vulnerabilities and vast opportunities for green growth. Most of the funding went to climate change mitigation projects.
Support for climate adaptation — essential for coping with droughts, floods, and extreme temperatures — is also on the rise. High-income countries received financing mainly for mitigation projects, but the emphasis on developing nations highlights a significant shift in global climate finance priorities.
Beyond direct lending, MDBs helped mobilize $134 billion in private climate financing — a 33% increase from the previous year. This effort is vital, as public funds alone are insufficient to cover the massive needs of the energy transition. By de-risking projects, MDBs act as multipliers, attracting private investors.
Africa stands out in this context, given its high vulnerability to climate impacts but also its vast renewable energy potential and natural resources. As Anthony Nyong of the African Development Bank noted, “Africa is accelerating actions that turn the continent’s green potential into energy, nature-based solutions, innovation, and a dynamic workforce.” This financing, combined with private investment, offers Africa a unique opportunity to scale up clean energy, climate-resilient agriculture, and climate-adapted urban infrastructure. However, to translate funds into concrete results, stable policy frameworks and effective governance structures are essential.
These advances come as the world prepares for COP30, to be held in Belém, Brazil, in 2025. The Conferences of the Parties (COP) are annual UN-organized summits on climate change. At COP29, held in Baku, countries agreed to increase global climate finance to at least $1.3 trillion per year through 2035.
For Africa, the stakes are high, but so are the opportunities. With the right policies and MDB financial support, the continent has the potential to leapfrog into a sustainable growth model. The record numbers from 2024 show that climate finance is moving from promises to action — and Africa is on track to become one of its biggest beneficiaries.
Source: Diário Económico
