Development bank climate finance up 24% to $82bn

EIB HQ in Luxembourg

The world’s biggest multilateral development banks increased their climate-related financing by 24% to $82 billion in 2021.

That’s according to the 2021 Joint Report on Multilateral Development Banks’ Climate Finance, coordinated by the European Investment Bank (EIB).

EIB vice-president Ambroise Fayolle said: “To meet the Paris Agreement goals, we must increase climate finance at scale.

“Ahead of the COP27 conference, this report sends the encouraging message that, despite the COVID-19 pandemic, multilateral development banks in 2021 have collectively increased their climate finance worldwide to a total of $82 billion, of which $51 billion in low and middle-income countries and $31 billion in high income countries, mobilised significant private sector resources and worked with clients around the world.

“At the EIB, we are delighted to have delivered a record year for 2021, with 49% of our funding dedicated to climate action.

“We stand ready to continue supporting climate projects worldwide.”

The 2021 report combines data from the African Development Bank (AfDB), the Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the Inter-American Development Bank Group (IADB), the Islamic Development Bank (IsDB) and the World Bank Group (WBG).

This year’s report also summarises information on climate finance tracking from the Council of Europe Development Bank (CEB) and the New Development Bank (NDB), presented separately from the joint figures.

The EIB is the long-term lending institution of the European Union and is owned by the EU Member States.

The EIB has adopted a Climate Bank Roadmap to deliver on its agenda to support €1 trillion of climate action and environmental sustainability investments in the decade to 2030 and to deliver more than 50% of EIB finance for climate action and environmental sustainability by 2025.

As part of this roadmap, all new EIB Group operations have been aligned with the goals and principles of the Paris Agreement since the start of 2021.