September 23 (Renewables Now) - A group of nine multilateral development banks (MDBs) has pledged to support global climate action investments by reaching USD 175 billion (EUR 159.3bn) in annual financing for such initiatives by 2025.
The plan was announced at the UN Secretary-General’s Climate Action Summit in New York on Sunday amid joint efforts to meet the goals of the Paris Agreement. The group of MDBs includes the Asian Development Bank (ADB), the African Development Bank, AIIB, the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), IDB Group, the Islamic Development Bank, the New Development Bank and the World Bank Group.
The new investment commitment represents an increase from the record USD 111 billion of combined MDB climate finance and co-finance funds provided to developing countries and emerging economies last year. By 2025, the combined annual MDB financing will grow 50% from current levels to USD 65 billion, while co-financing for investment in climate action will increase to USD 110 billion.
The funding will come in three streams. The plan envisages support for low and middle-income economies of USD 50 billion per year and a doubling of the size of financing for annual combined climate adaptation finance to USD 18 billion by 2025. Annual co-financing for investment in climate action is planned to jump to USD 110 billion, with USD 40 billion coming from private sector investors.
(USD 1.0 = EUR 0.910)