Development bank climate finance rose 24% in 2021 - report

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The world's biggest multilateral development banks increased their climate-related financing by 24% to $82 billion in 2021, a report by the lenders showed on Friday, ahead of the next round of global climate talks.

committed last year, around $51 billion, or 62%, went to low and middle-income countries. Of that total, more than $33 billion went to projects that aim to cut or mitigate climate-damaging emissions, the banks said in the report.A further $17 billion went towards projects aimed at adapting economies to the increasingly costly impacts of climate change. At the same time, capital to the countries from private investors was $13 billion, the report said.

The 2021 figure remains a long way short of the estimated finance needed by emerging markets, however. A report by the world's biggest asset manager BlackRock last year put that figure at $1 trillion a year of public and private finance.passed a 2019 goal of providing at least $50 billion a year by 2025 ahead of schedule, the EIB said in a statement announcing the Joint Report on Multilateral Development Banks’ Climate Finance.

"To meet the Paris Agreement goals, we must increase climate finance at scale," EIB Vice-President Ambroise Fayolle said in a statement. "Ahead of the COP27 conference, this report sends the encouraging message that, despite the COVID-19 pandemic, multilateral development banks in 2021 have collectively increased their climate finance worldwide."Reporting by Simon Jessop; Editing by Hugh Lawson

 

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