MDBs Back COP31 Action Agenda With $103 Billion in Climate Finance for 2025

MDBs say the impact of their financing should be visible in the development outcomes it supports for people, economies and ecosystems.

Multilateral development banks (MDBs) have welcomed the COP31 Climate Action Agenda and its focus on putting climate commitments into practice. They will work with Türkiye's COP31 Presidency, Australia's President of Negotiations, and other partners to support climate-smart development. Their work will follow countries' and clients' priorities, including commitments set out in Nationally Determined Contributions.

MDBs combine financing with knowledge, policy support and capacity-building to help countries and private sector clients turn development and climate goals into results. Their work backs resilience, low-carbon growth, jobs and better living conditions for people and communities. The Presidency's priorities for Antalya, electrification, green industrialization, adaptation, resilience and access to finance align with areas where MDBs are seeing rising demand and increasing investment.

In 2025, MDBs provided $103 billion in climate finance to low- and middle-income economies, including $35 billion for adaptation, and mobilized another $35 billion in private climate finance for those economies. Climate finance rose 21% from the previous year. The figures mark progress toward the collective 2030 targets announced at COP29: $120 billion a year in climate finance for low- and middle-income economies and an additional $65 billion in mobilized private capital.

Finance that supports people and communities

MDBs say the impact of their financing should be visible in the development outcomes it supports for people, economies and ecosystems. Priorities include strengthening vulnerable communities' resilience, supporting jobs and food security, expanding access to energy, health and education, and improving access to affordable, climate-smart infrastructure, housing and essential services. Adaptation, disaster preparation and resilience are areas of growing demand from clients.

At COP31, the MDB Partnership for Adaptation and Resilience Investment will be presented as a way to deepen engagement with clients and expand investment in adaptation. The initiative is intended to respond to strong demand and draw more public and private finance toward adaptation. MDBs also highlighted the need for accessible financing and delivery support in small island developing states and fragile and conflict-affected settings, where concessional resources can help advance climate-smart development.

A shared approach across countries

The banks are coordinating their work to increase impact, support market changes that attract sustainable capital, strengthen competitiveness and build long-term economic resilience. Through the Joint MDB Long-Term Strategies Program, they are moving into implementation in more than 30 countries. In several of those countries, multiple MDBs are working together to turn climate plans into investment pipelines and financing.

Shared methods are part of that effort, including common principles for tracking and jointly reporting climate finance. MDBs are developing common metrics to measure climate-smart development results and working toward mutual reliance in operations they co-finance. They also plan to deepen collaboration with multilateral climate funds to improve support for clients facing particularly difficult financing conditions.

Working with COP31 partners

The MDBs thanked Türkiye and Australia for bringing countries together through their climate leadership at COP31. They welcomed the opportunity to engage with governments, businesses and other partners during the conference and beyond. Their stated focus is to direct support toward areas where clients are calling for more climate finance, with an emphasis on practical outcomes.