Multilateral Development Bank Progress on the Just Energy Transition

The document assesses the World Bank, Asian Development Bank (ADB), and African Development Bank (AfDB) against criteria for renewable energy transition, democratic energy systems, and environmental and social safeguards. It finds that these institutions often prioritize loans over grants, maintain gender-blind financing, and continue to invest in 'false solutions' such as large hydropower and hydrogen, despite their stated climate commitments.

• The World Bank's energy investments from 2022 to 2024 show slow progress toward a just transition, with only one third of investments in sustainable renewable energy and 25% still supporting the expansion of fossil fuels. There has also been an increase in 'false solutions' including carbon markets, hydrogen, waste to energy, and large hydro power.
• The Asian Development Bank (ADB) reported $5.67 billion in renewable energy investments between 2022 and 2024, but only $4.14 billion met the criteria for sustainable renewables. Approximately $1.53 billion was allocated to 'false solutions' like biofuels, hydrogen, and large hydropower, with funding for these technologies exceeding $1 billion in 2024, representing 24% of that year's energy finance.
• The African Development Bank (AfDB) approved no direct funding for fossil fuel projects in 2024, yet it continues to include fossil gas in its Energy Sector Policy. In 2024, financing for sustainable renewable energy dropped by more than 90%, while investments in grid-heavy mixed projects and large-scale hydro increased.
• Across the evaluated banks, energy financing remains predominantly loan-based and 'gender-blind'. Specifically, 78% of the AfDB's energy funding from 2022 to 2024 was provided as loans.

APA

Race, M. (2025). Multilateral Development Bank Progress on the Just Energy Transition. Recourse. https://re-course.org/newsupdates/fact-sheets-multilateral-development-bank-progress-on-the-just-energy-transition/

Chicago

Race, Madeleine. Multilateral Development Bank Progress on the Just Energy Transition. Recourse, 2025. https://re-course.org/newsupdates/fact-sheets-multilateral-development-bank-progress-on-the-just-energy-transition/.

Wikipedia

{{cite report |last1=Race |first1=Madeleine |title=Multilateral Development Bank Progress on the Just Energy Transition |publisher=Recourse |date=17 April 2025 |url=https://re-course.org/newsupdates/fact-sheets-multilateral-development-bank-progress-on-the-just-energy-transition/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{race2025multilateral, author = {Race, Madeleine}, title = {{Multilateral Development Bank Progress on the Just Energy Transition}}, institution = {Recourse}, year = {2025}, month = apr, url = {https://re-course.org/newsupdates/fact-sheets-multilateral-development-bank-progress-on-the-just-energy-transition/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }