- Worldwide 2021 figures surpass 2025 climate finance goals, with global mitigation finance of nearly USD63 billion
- Global adaptation finance reaches over USD19 billion
- The amount of mobilised global private finance stands at USD41 billion
Climate finance committed by major multilateral development banks (MDBs) rose by more than 24% last year compared to 2020, according to the 2021 Joint Report on Multilateral Development Banks’ Climate Finance, published today.
The 2021 total financing by multilateral development banks already surpassed the 2025 climate finance goals set at the 2019 UN Secretary General’s Climate Action Summit in New York. The goals amount to an expected collective total of USD50 billion for low- and middle-income economies, and at least USD65 billion of climate finance globally, with a projected doubling of adaptation finance to USD18 billion, and private mobilisation of USD40 billion.
Low- and middle-income countries
In 2021, MDBs provided around USD51 billion (62% of overall MDB climate finance) in climate finance to low- and middle-income economies. Of this total, more than USD33 billion (65%) was for climate change mitigation and more than USD17 billion (35%) for climate change adaptation. The amount of mobilised private finance stood at USD13 billion.
In addition, in 2021, MDBs provided more than USD31 billion (38% of overall MDB climate finance) in climate finance to high-income economies, with USD29 billion (95%) for climate change mitigation and USD1.6 billion (5%) for climate change adaptation. The amount of mobilised private finance stood at USD28 billion.
In 2021, AIIB’s climate finance amounted to USD2.9 billion, or 48 percent of total approved financing, up from 41 percent in the previous year. Of the total climate financing, climate mitigation projects—such as renewable energy, energy efficiency and urban public transport—received 78 percent, with the remaining 22 percent being adaptation finance or having dual benefits. The vast majority (82 percent) of climate financing was approved to sovereign clients, while the balance was approved to private sector and municipal government clients. Transport sector projects contributed the highest share (33 percent), followed by energy (21 percent), urban (18 percent), water (14 percent) and finance (10 percent).
“Partnership is integral to AIIB’s mandate and business model, and relevant to our lean structure. It is also crucial to achieving the Paris Agreement ambitions that multilateral development banks, along with other actors, mobilize development finance and create synergy in solving global challenges together. As guided by our Corporate Strategy, we aim to further expand our partnerships to deliver greater value to our Members,” said Sir Danny Alexander, AIIB’s Vice President for Policy and Strategy. “As AIIB prepares for COP27 in Egypt, we look forward to raising more awareness on the urgent need to adopt climate adaptation and mitigation measures and contributing to the global climate agenda.”
The Joint Report on Multilateral Development Banks’ Climate Finance is an annual collaboration to make the banks’ climate finance figures public, together with a clear explanation of the methodologies for tracking this finance. This joint report, alongside the publication of climate finance statistics for each bank, is intended to track progress in relation to their climate finance targets, such as those announced around COP21, and the greater ambition pledged for the post-2020 period.
The 2021 multilateral development bank report, coordinated by the EIB, combines data from the African Development Bank (AfDB), the Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the Inter-American Development Bank Group (IADB), the Islamic Development Bank (IsDB) and the World Bank Group (WBG). This year’s report also summarises information on climate finance tracking from the Council of Europe Development Bank (CEB) and the New Development Bank (NDB), presented separately from the joint figures.
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank whose mission is financing the Infrastructure for Tomorrow—infrastructure with sustainability at its core. We began operations in Beijing in January 2016 and have since grown to 105 approved members worldwide. We are capitalized at USD100 billion and Triple-A-rated by the major international credit rating agencies. Collaborating with partners, AIIB meets clients’ needs by unlocking new capital and investing in infrastructure that is green, technology-enabled and promotes regional connectivity.