MDB Climate Finance Hits Record $163 Billion in 2025

Low- and middle-income countries received $103 billion in climate finance during 2025, representing a 21% increase compared with the previous year and the highest annual total ever recorded by MDBs.

Multilateral development banks (MDBs), including the European Investment Bank (EIB), provided a record $163 billion in climate finance during 2025, reflecting growing international efforts to help countries strengthen climate resilience and accelerate the transition to cleaner economies.

The figures, published in the 2025 Joint Summary Report on Multilateral Development Banks' Climate Finance, show a sharp rise in climate-related investments across both developing and advanced economies. The report also confirms that MDBs are progressing in line with the climate finance commitments they outlined during the COP29 United Nations climate conference in Baku in 2024.

EIB Vice-President Ambroise Fayolle said the latest results demonstrate that multilateral development banks are expanding support where it is needed most by helping governments and businesses invest in resilience, energy security and sustainable economic growth while attracting additional public and private investment.

Developing Countries Receive Largest Share of Funding

Low- and middle-income countries received $103 billion in climate finance during 2025, representing a 21% increase compared with the previous year and the highest annual total ever recorded by MDBs.

Climate mitigation projects, including renewable energy, cleaner transport and emissions reduction initiatives, accounted for $68 billion of the total funding. Climate adaptation projects, designed to help communities cope with the growing impacts of climate change, reached $35 billion, continuing a steady upward trend.

The report also highlighted the growing role of private investment, with MDBs mobilising $35 billion from private sector partners in developing economies. Over the past five years, climate finance directed to these countries has doubled, reflecting increasing demand for investment that supports both economic development and climate resilience.

Advanced Economies Also See Strong Investment Growth

MDB climate finance for high-income economies reached $60 billion in 2025, including $53 billion for mitigation projects and $7 billion for climate adaptation measures. Private finance mobilisation in advanced economies totalled $80 billion, demonstrating continued investor confidence in climate-focused projects supported by multilateral lenders.

According to the report, funding levels in high-income countries have already met or exceeded the MDBs' 2030 climate finance projections five years ahead of schedule. The continued expansion of financing is expected to support cleaner energy systems, stronger infrastructure and greater resilience to climate-related risks while helping countries meet their long-term climate commitments.

The record investment underlines the growing role of multilateral development banks in financing projects that address climate change while supporting sustainable economic development across the world.