Multilateral development banks increased climate financing in 2025. A survey released this week by the European Investment Bank (EIB) indicates that the amount allocated to climate action projects in developing countries increased by 21% last year, reaching US$103 billion (R$524 billion) last year. Adding all countries, investment reached US$162.5 billion (R$827 billion), an increase of 19% compared to the previous year.
Climate financing from development banks breaks record in 2025
Multilateral development banks increased climate financing in 2025. A survey released this week by the European Investment Bank (EIB) indicates that the amount allocated to climate action projects in developing...
The trajectory of climate financing by these institutions continues to indicate an increase in the participation of this type of source. Over the past five years, climate financing from development banks to low- and middle-income countries has doubled.
Of the US$103 billion registered in 2025 (which, it is worth remembering, represents less than 10% of the new annual global climate financing target until 2035, of US$1.3 trillion), mitigation still represents the largest portion of financing, with US$68 billion (R$364 billion), an increase of 16% over the previous year. But financing for adaptation projects grew significantly in the last year, reaching US$35 billion (R$178 billion), an increase of 31%.
In high-income economies, climate financing from multilateral development banks remained stable. Support for mitigation efforts totaled US$53 billion (R$270 billion), and US$7 billion (R$35.6 billion) was allocated to adaptation.
According to the EIB, the 2025 data reinforces the development banks' commitment to climate financing in line with the projections for 2030 presented during COP29, in 2024, in Baku. By the end of this decade, institutions have collectively committed to allocating US$120 billion (R$610.7 billion) annually in climate finance to developing countries, including US$42 billion (R$213.7 billion) for adaptation.
The survey was carried out together with ten other multilateral development banks. The World Bank continued to be the main multilateral financier for climate projects, accounting for almost half of the total value (US$49.9 billion, or R$254 billion) for developing countries.
“The results demonstrate that multilateral development banks are implementing measures on a large scale and accelerating support where it is most needed,” said Ambroise Fayolle, vice president of the EIB.
But the question is whether the trend will continue. Experts are concerned about the World Bank's recent decision to abandon its goal of allocating 45% of its annual financing to climate-related projects. As Reuters highlights, the institution remains under pressure from Donald Trump's government to abandon any climate initiative.
CNBC Africa and Folha also shared the news.
Source:
ClimaInfo
