Multilateral Development Banks Raise Climate Finance to Record $163 Billion in 2025
Multilateral development banks (MDBs) committed a record US$163 billion in climate action finance during 2025, marking a significant increase in global funding for clean energy, climate resilience and sustainable development. The latest joint report from the world’s leading development lenders shows total climate financing rose by 19% compared with 2024, while support for low- and middle-income countries increased by 21% to US$103 billion.
The figures highlight the growing role of MDBs in financing the global transition to low-carbon economies and strengthening resilience against climate-related risks.
Developing Economies Receive the Largest Share
Low- and middle-income countries accounted for the largest share of climate finance, receiving US$103 billion during 2025.
Of that total, US$68 billion was directed toward climate mitigation projects, including renewable energy, cleaner transport systems, energy efficiency initiatives and emissions reduction efforts.
Climate adaptation financing reached US$35 billion, supporting projects designed to help communities respond to rising temperatures, prolonged droughts, flooding and other climate-related challenges.
The report noted that climate finance for developing economies has doubled over the past five years, reflecting stronger international support for sustainable development and climate resilience.
Private Investment Continues to Grow
MDBs also expanded their role in attracting private capital to climate projects.
Private sector investment mobilized for low- and middle-income countries reached US$53 billion, helping increase the scale and impact of climate-focused investments.
In high-income economies, MDB climate finance totaled US$60 billion, including US$7 billion allocated to adaptation projects. Private sector mobilization in these markets reached US$80 billion, underlining continued investor confidence in climate-related infrastructure and clean energy projects.
The growing participation of private investors demonstrates how development banks are increasingly acting as catalysts, helping reduce investment risks and unlock additional financing for large-scale climate initiatives.
MDBs Move Ahead of Their COP29 Climate Targets
The report indicates MDBs are progressing faster than expected toward the climate finance commitments announced during the COP29 United Nations Climate Change Conference in Baku in 2024.
Under those commitments, the banks pledged to provide US$120 billion in annual climate finance for low- and middle-income countries by 2030, including US$42 billion dedicated to adaptation.
For high-income economies, they committed to delivering US$50 billion annually alongside US$65 billion in mobilized private investment.
Based on the latest figures, financing for high-income countries has already met or exceeded those targets several years ahead of schedule, while support for developing economies is steadily approaching its 2030 objective.
The banks reaffirmed these commitments during COP30 in Belém, stating they will continue working together to support countries pursuing climate-smart development and sustainable economic growth.
Collaboration Remains Central to Climate Finance
Gianpiero Nacci, Managing Director for Climate Strategy and Delivery at the European Bank for Reconstruction and Development (EBRD), said collaboration among multilateral development banks has become increasingly important as countries navigate growing geopolitical and economic uncertainty.
He said the record investment levels demonstrate what development banks can achieve by working together while continuing to support climate mitigation, adaptation and nature-based solutions. He also noted that MDB cooperation helps attract additional private investment, expanding both the economic and environmental impact of climate projects.
New Climate Finance Dashboard Improves Transparency
Beyond increasing funding, MDBs are also strengthening transparency around climate finance.
In April 2026, the banks launched the pilot version of the MDB Climate Finance Dashboard, an online platform offering detailed climate finance data, interactive visualizations and harmonized reporting methodologies.
The dashboard is designed to help governments, investors, researchers and the public better understand how climate finance is being allocated while improving consistency in reporting across participating institutions.
Ten Development Banks Contributed to the Report
The 2025 Joint Summary Report was coordinated by the European Investment Bank with support from the European Bank for Reconstruction and Development.
It combines climate finance data from ten multilateral development banks, including the World Bank Group, African Development Bank, Asian Development Bank, Asian Infrastructure Investment Bank, Inter-American Development Bank Group, Islamic Development Bank and the New Development Bank.
Together, the institutions reported their strongest year yet for climate finance, underscoring the expanding role of development banks in supporting clean energy, climate resilience and sustainable economic growth across both developing and advanced economies.
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