Multilateral Development Bank Climate Finance in 2018: The Good, the Bad and the Urgent

In 2018, MDBs reached a record $43 billion in climate finance commitments, with an increased share allocated to adaptation and vulnerable countries. However, some banks experienced absolute declines in funding, and private sector mobilization remains lower than public co-financing. The analysis urges MDBs to meet 2020 targets, set ambitious post-2020 goals, and align their entire portfolios with the Paris Agreement.

• MDB climate finance commitments reached a record $43 billion in 2018, representing a 22% increase from the $35 billion committed in 2017. The World Bank Group and European Investment Bank (EIB) have already achieved their 2020 climate finance targets, while the African Development Bank (AfDB) is on track.
• The proportion of MDB climate finance dedicated to adaptation rose from 23% in 2016 to 30% in 2018. This allocation varies significantly by institution: the AfDB directed nearly half of its climate finance to adaptation in 2018, whereas the EIB and European Bank for Reconstruction and Development (EBRD) allocated 8% and 12% respectively.
• Funding for the most vulnerable regions increased, with the share of climate finance going to Small Island Developing States and Least Developed Countries rising from 10% last year to 16% in 2018.
• Certain MDBs showed a decline in climate finance relative to their total operations. The Asian Development Bank (ADB) and EBRD saw absolute decreases in climate finance between 2017 and 2018 of 23% and 17% respectively. Additionally, the ADB, EBRD, and Inter-American Development Bank Group (IDBG) experienced slower growth in climate finance compared to their overall financing.
• Mobilizing private investment remains a challenge; between 2016 and 2018, every dollar of MDB climate finance mobilized $0.87 from public sources but only $0.62 from private sources, despite a steady increase in the overall co-financing ratio from $1.38 in 2016 to $1.58 in 2018.
• There is an urgent need for MDBs to align their entire portfolios with the Paris Agreement by ceasing investments in high-emissions activities. Nine MDBs, including the Asian Infrastructure Investment Bank, the Islamic Development Bank, and the New Development Bank, announced a joint approach to alignment at COP 24 to be presented at COP 25 in Chile.

APA

Thwaites, J. (2019). Multilateral Development Bank Climate Finance in 2018: The Good, the Bad and the Urgent. World Resources Institute. https://www.wri.org/insights/multilateral-development-bank-climate-finance-2018-good-bad-and-urgent

Chicago

Thwaites, Joe. Multilateral Development Bank Climate Finance in 2018: The Good, the Bad and the Urgent. World Resources Institute, 2019. https://www.wri.org/insights/multilateral-development-bank-climate-finance-2018-good-bad-and-urgent.

Wikipedia

{{cite report |last1=Thwaites |first1=Joe |title=Multilateral Development Bank Climate Finance in 2018: The Good, the Bad and the Urgent |publisher=World Resources Institute |date=21 June 2019 |url=https://www.wri.org/insights/multilateral-development-bank-climate-finance-2018-good-bad-and-urgent |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{thwaites2019multilateral, author = {Thwaites, Joe}, title = {{Multilateral Development Bank Climate Finance in 2018: The Good, the Bad and the Urgent}}, institution = {World Resources Institute}, year = {2019}, month = jun, url = {https://www.wri.org/insights/multilateral-development-bank-climate-finance-2018-good-bad-and-urgent}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }