Multilateral Development Bank Efforts to Mainstream Climate Adaptation

The report evaluates how the African Development Bank (AfDB), Asian Development Bank (ADB), Inter-American Development Bank (IDB), and World Bank integrate climate adaptation into their projects in Kenya, Nepal, and Peru. While global adaptation finance is increasing, country-level trends are mixed and often skewed by large individual projects. MDBs have largely standardized climate risk screening, though capacity gaps remain within national finance ministries. Alignment with National Adaptation Plans (NAPs) and Nationally Determined Contributions (NDCs) is improving but remains nascent, with a need for more programmatic finance and transformational adaptation projects.

• Global MDB financial flows for adaptation have risen steadily from USD 4.52 billion in 2011 to USD 17.61 billion in 2021, though they remain lower than mitigation flows and insufficient for developing country needs.
• Country-level trends in adaptation finance are inconsistent and difficult to discern because the approval of a single large project can significantly distort annual allocations.
• In Kenya (2013–2019), World Bank adaptation-related financing totaled USD 797.2 million (14.7% of total commitments), while the AfDB did not release disaggregated country-level data on climate finance.
• In Nepal (2013–2020), World Bank adaptation financing reached USD 1,197.8 million (26.1% of total commitments), while ADB adaptation financing totaled USD 321.5 million (10.5% of total commitments).
• In Peru (2013–2020), World Bank adaptation finance was 4.1% of total investments (USD 149.5 million), and IDB adaptation finance remained low until a spike to USD 104.1 million in 2019 due to one large project.
• Climate risk screening has become mandatory for the AfDB, ADB, IDB, and World Bank, leading to increased climate-proofing of infrastructure and the inclusion of adaptation in non-traditional sectors like education and health.
• MDBs are beginning to align their programming with national priorities in NAPs and NDCs, but the process is often reactive to government requests rather than integrated into the initial identification of priorities.
• A significant barrier to scaling up adaptation finance is the lack of awareness and capacity within national finance ministries regarding the economic benefits and costs of adaptation investments.

APA

Murphy, D., & Donaldson, J. (2023). Multilateral Development Bank Efforts to Mainstream Climate Adaptation. International Institute for Sustainable Development. https://www.iisd.org/system/files/2023-03/multilateral-development-banks-climate-adaptation.pdf

Chicago

Murphy, Deborah, and Julia Donaldson. Multilateral Development Bank Efforts to Mainstream Climate Adaptation. International Institute for Sustainable Development, 2023. https://www.iisd.org/system/files/2023-03/multilateral-development-banks-climate-adaptation.pdf.

Wikipedia

{{cite report |last1=Murphy |first1=Deborah |last2=Donaldson |first2=Julia |title=Multilateral Development Bank Efforts to Mainstream Climate Adaptation |publisher=International Institute for Sustainable Development |date=January 2023 |url=https://www.iisd.org/system/files/2023-03/multilateral-development-banks-climate-adaptation.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{murphy2023multilateral, author = {Murphy, Deborah and Donaldson, Julia}, title = {{Multilateral Development Bank Efforts to Mainstream Climate Adaptation}}, institution = {International Institute for Sustainable Development}, year = {2023}, month = jan, url = {https://www.iisd.org/system/files/2023-03/multilateral-development-banks-climate-adaptation.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }