Climate finance for the world's six largest multilateral development banks reached US$35.2 billion in 2017

According to the latest joint report on climate finance by multilateral development banks, the world's six largest multilateral development banks' financing on climate change reached US$35.
2 billion in 2017, up 28% year-on-year and a nearly seven-year
high.

Of that amount, $27.
9 billion (or 79% of the 2017 total) was dedicated to climate mitigation projects
aimed at reducing harmful emissions and slowing global warming.
The remaining $7.
4 billion, or 21 percent of the 2017 total, was used to finance climate adaptation projects in emerging and developing countries to help economies cope with the effects of climate change, such as abnormal rainfall, drought and worsening
extreme weather events.

In 2016, climate finance from the six major multilateral development banks totalled US$27.
4 billion.

The six multilateral development banks are the Asian Development Bank, the African Development Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the World Bank Group (including the World Bank, the International Finance Corporation and the Multilateral Investment Guarantee Agency), and the Inter-American Development Bank Group
.

These banks account for the vast majority of multilateral development finance
.
In October 2017, the Islamic Development Bank joined the MDB's Climate Finance Tracker Group, whose climate finance data will be included in joint reports
beyond 2018.

Climate funds such as the Climate Investment Fund (CIF), the Global Environment Facility (GEF) Trust Fund, the Global Energy Efficiency and Renewable Energy Facility (GEEREF), the EU Climate Action Fund, the Green Climate Fund (GCF) and others also play an important role
in promoting climate finance from multilateral development banks.
In addition to the $35.
2 billion in multilateral development financing, the same adaptation and mitigation project received an additional $5.
17 billion
from other sources of financing last year.

Of the total financing in 2017, 81% was provided
as loans.
Other types of financial instruments include policy-based loans, grants, guarantees, stocks, and lines of credit
.

Regionally, Latin America, Sub-Saharan Africa and East Asia and the Pacific are the top three developing regions
receiving funding.

The growing challenge of addressing climate change is the main reason
for the dramatic increase in financing.
Multilateral banks began issuing climate investments jointly to developing and emerging economies in 2011, and in 2015 multilateral development banks and the International Development Finance Club agreed on common principles
for tracking climate adaptation and mitigation finance.

Jonathan Taylor, Vice President of the European Investment Bank for Climate Action and Environment, said: "This report, which focuses on developing and emerging economies, shows how multilateral development banks are leading the international mobilization to mobilize the finance needed to tackle climate change and report that climate financing
is robust, transparent and consistent.
I am proud that EU banks are well on track to deliver on their commitment to increase climate finance for developing countries to 35% of total financing by 2020 to help achieve the Paris Agreement
.
”