New Delhi : The world’s six largest multilateral development banks (MDBs) mobilized $81 billion as climate financing in 2015. While $25 billion came in from MDBs directly, a further $56 billion came in from other investors.
The MDBs - Asian Development Bank (ADB), African Development Bank (AfDB), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Inter-American Development Bank Group (IDBG) and World Bank Group (WBG) - delivered over $20 billion for mitigation activities and $5 billion for adaptation during 2015, according to the 2015 Joint Report on Multilateral Development Banks’ Climate Finance.
The largest recipient of adaptation funding was the water and wastewater sector, with 27 per cent of the funds flowing into it, followed by energy, transport and related infrastructure at 24 per cent and crop and food production at 18 per cent. Renewable energy received the bulk of mitigation finance (30 per cent), lower-carbon transport received 26 per cent, and energy efficiency activities got 14 per cent.
Mitigation activities involve the reduction of greenhouse gas emissions through energy efficiency measures and the use of clean, renewable energy sources, while adaptation measures reduce climate vulnerability and increase resilience to climate change through, for example, investing in climate-resilient land-use and water resource management.
Since 2011, MDBs have jointly committed more than $131 billion in climate finance.
Among the regions, non-European Union (EU) Europe and Central Asia received the largest share of total funding at 20 per cent; with South Asia receiving 19 per cent; Latin America and the Caribbean 15 per cent; East Asia and the Pacific 14 per cent; the EU 13 per cent; Sub-Saharan Africa nnine per cent; and the Middle East and North Africa nine per cent.
Multi-regional commitments made up the other two per cent of the total.
The important contribution to the global climate change challenge was reinforced last year by pledges from all of the MDBs to significantly increase their climate finance in the coming years. They made these pledges in the run up to the COP21 Paris Agreement, the world’s first universal climate accord adopted in December 2015 by 195 countries.
Moving forward, the report notes that the MDBs will scale up climate finance activities across multiple sectors, in particular in renewable energy and energy efficiency; low-carbon and climate-resilient cities, regions and industries; low-carbon transport; natural resource efficiency; and climate-smart agriculture and food security. These efforts will help countries meet their commitments under the Paris Agreement, moving to a low-carbon, more resilient future.