Multilateral Development Banks' Climate Finance Reaches Record High in 2025

At COP30 in Belém, MDBs reaffirmed their commitment to working together to help countries seize opportunities created by climate-smart development while supporting sustainable economic growth.

Multilateral development banks (MDBs) provided a record level of climate finance in 2025, marking another major step in global efforts to support countries tackling climate change while building stronger and more resilient economies. The latest 2025 Joint Report on Multilateral Development Banks' Climate Finance shows that MDBs collectively delivered $163 billion in climate finance across all countries where they operate, representing a 19% increase compared with the previous year. Low- and middle-income countries received $103 billion, an increase of 21%, reflecting growing investment in projects that reduce emissions, strengthen resilience and help communities adapt to changing climate conditions.

The report also confirms that the banks remain on course to achieve the climate finance commitments they announced during the COP29 climate conference in Baku in 2024, putting them in a strong position ahead of the 2030 targets.

Adaptation and Private Investment Continue to Grow

Climate finance for developing economies has doubled over the past five years, showing how international financial institutions are expanding support as countries face rising climate risks and growing development needs. Of the $103 billion committed in low- and middle-income countries during 2025, $68 billion was directed towards climate mitigation projects designed to reduce greenhouse gas emissions, while $35 billion supported adaptation measures that help communities cope with climate impacts. MDBs also mobilised $35 billion in private-sector investment, encouraging businesses to play a greater role in financing climate solutions.

Support remained strong in high-income countries as well. MDBs provided $53 billion for mitigation projects and $7 billion for adaptation initiatives, reaching or exceeding their 2030 climate finance goals five years ahead of schedule. Private investment mobilised in these economies reached $80 billion, highlighting continued confidence in climate-related projects.

At COP30 in Belém, MDBs reaffirmed their commitment to working together to help countries seize opportunities created by climate-smart development while supporting sustainable economic growth.

New Digital Dashboard Improves Climate Finance Transparency

Alongside increasing financial commitments, MDBs are also improving how climate finance information is shared with governments, investors and the public. A new MDB Climate Finance Dashboard, launched in April 2026, offers interactive data, detailed breakdowns and harmonised reporting methods that allow users to explore climate finance figures more easily. The digital platform complements the annual joint report by providing greater transparency and making climate finance information more accessible for policymakers and researchers.

The 2025 report was coordinated by the European Investment Bank (EIB) with support from the European Bank for Reconstruction and Development (EBRD). It combines data from ten multilateral development banks, including the World Bank Group, Asian Development Bank, African Development Bank, Asian Infrastructure Investment Bank, Inter-American Development Bank Group, Islamic Development Bank, New Development Bank and other international financial institutions.

Together, these organisations say stronger collaboration, larger investments and improved transparency will help countries accelerate climate action while supporting sustainable and resilient development over the coming decade.