Global climate finance by multilateral development banks (MDBs) increased 10 per cent last year, reaching a record US$ 137 billion, with the majority directed to low- and middle-income economies. MDBs including the European Bank for Reconstruction and Development (EBRD) announced the year-on-year increase in a report published today.

In addition, private finance mobilised by MDBs for climate action reached US$ 134 billion in 2024, a 33 per cent increase from the previous year, according to the new report. The latest climate finance data from MDBs will inform preparations for the United Nations Climate Change Conference (COP30) in Belém, Brazil, in November 2025. Expanding climate finance will be a central theme at COP30. At the last summit, held in Baku, Azerbaijan, in November 2024, countries agreed to scale up support for developing countries to at least US$ 1.3 trillion annually from public and private sources by 2035.

Gianpiero Nacci, Managing Director of Climate Strategy and Delivery at the EBRD, said: “The rapid technological transformation and today’s turbulent times make climate finance more vital than ever. Tackling the climate crisis is crucial in its own right, but accelerating the shift away from fossil fuels also makes our economies more competitive while reducing geopolitical risk. MDBs are working together to drive innovation, mobilise investment and support sustainable growth. With our strong private-sector focus, the EBRD is proud to play its part and help our regions seize the opportunities of this transition.”

Climate finance is central to the efforts of MDBs to advance sustainable development worldwide. By supporting investments in renewable energy, green cities, clean transport, water and food security, MDBs help countries move closer to achieving their sustainable development goals.