Multilateral development banks have pledged financial support and other measures to help countries achieve ambitious climate outcomes.

The banks disclosed their financial support at the ongoing COP29 in Baku.

According to a statement, MDBs estimate that by 2030, their annual collective climate financing for low-and middle-income countries will reach $120bn, including $42bn for adaptation. MDBs aim to mobilize $65bn from the private sector.

It noted that for high-income countries, this annual collective climate financing is projected to reach $50bn, including $7bn for adaptation, and MDBs aimed to mobilise $65bn from the private sector.

However, it noted that the MDBs significantly exceeded their ambitious 2025 climate finance projections set in 2019, with a 25 per cent increase in direct climate finance and mobilization for climate efforts doubling over the past year.

“While the scale of MDBs’ financial commitments is essential, MDBs’ most significant impact comes from our ability to drive transformative change.

“As emphasised by the Group of Heads of MDBs in the recent Viewpoint Note: MDBs Working as a System for Impact and Scale, we MDBs are focused on amplifying our catalytic effect by enhancing the results and impact of our financing, deepening engagement with countries through platforms, supporting clients’ climate ambitions, and increasing private sector mobilization.

“Rallying to the call for urgent climate action, MDBs recognise the central importance of establishing a New Collective Quantified Goal on Climate Finance at COP 29 in Baku. A robust and ambitious NCQG is essential for achieving the goals of the Paris Agreement, and we urge Parties to reach a strong conclusion on this objective,” the statement said.

Recognizing that quality and systemic impact must be informed by climate results, the MDBs released the Common Approach to Measuring Climate Results: Update on Indicators. The common approach, issued in April, is the first shared framework to define, measure, and link global progress on climate mitigation and adaptation with the climate results of MDB activities.

It added that the MDBs also published their Country Platforms for Climate Action – MDB Statement of Common Understanding and Way Forward, reaffirming their joint support for efforts to foster collaboration between host countries, MDBs, donors, and the private sector.

“The MDBs will build on successful examples to support the launch of new platforms while deepening collaboration with partners including the International Monetary Fund,” the statement added.