MDB Climate Finance in 2017: The Good, the Bad and the Urgent

In 2017, Multilateral Development Banks (MDBs) reached a record $35.2 billion in climate finance commitments, with all six banks increasing their contributions. However, the report identifies critical gaps: adaptation finance grew slower than mitigation, private investment mobilization remains below 2015 levels, and vulnerable nations like SIDS and LDCs received only 10.5% of total funding. Additionally, the author notes a lack of transparency regarding project-level data and the need for MDBs to align their entire portfolios with the Paris Agreement.

• MDB climate finance commitments reached a record high of $35.2 billion in 2017, representing a 28 percent increase over 2016. The African Development Bank (AfDB) saw the largest percentage increase, while the World Bank provided the largest absolute increase of $1.7 billion.
• Climate finance grew faster than overall MDB operations in 2017. The European Investment Bank (EIB) has already exceeded its 35 percent target for climate finance in developing countries, and the Islamic Development Bank (IsDB) began reporting its climate finance in energy, water and sanitation, transport, and agriculture, which totaled approximately $644 million.
• Adaptation finance is lagging behind mitigation; it totaled $7.35 billion (21 percent of total MDB climate finance) in 2017. While mitigation finance grew by 31 percent over 2016, adaptation finance grew by only 18 percent, and actually declined in real terms at the EIB and Asian Development Bank (ADB).
• Financial support for the most vulnerable regions remains insufficient, with Small Island Developing States (SIDS) and Least Developed Countries (LDCs) receiving only $3.7 billion, or 10.5 percent of total MDB climate finance, despite representing about 17 percent of the developing country population.
• Private sector mobilization and transparency are ongoing challenges. The co-financing ratio rose to $1.47 in 2017 but remains below the $2.22 ratio seen in 2015. Furthermore, only the ADB and World Bank publish project-level lists, and no MDB explains how the climate-specific share of project financing is calculated.

APA

World Resources Institute (2018). MDB Climate Finance in 2017: The Good, the Bad and the Urgent. https://www.wri.org/insights/mdb-climate-finance-2017-good-bad-and-urgent

Chicago

World Resources Institute. MDB Climate Finance in 2017: The Good, the Bad and the Urgent. 2018. https://www.wri.org/insights/mdb-climate-finance-2017-good-bad-and-urgent.

Wikipedia

{{cite report |author=World Resources Institute |title=MDB Climate Finance in 2017: The Good, the Bad and the Urgent |date=29 June 2018 |url=https://www.wri.org/insights/mdb-climate-finance-2017-good-bad-and-urgent |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitute2018mdb, author = {{World Resources Institute}}, title = {{MDB Climate Finance in 2017: The Good, the Bad and the Urgent}}, institution = {World Resources Institute}, year = {2018}, month = jun, url = {https://www.wri.org/insights/mdb-climate-finance-2017-good-bad-and-urgent}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }