IsDB and Global Banks Pledge $120 Billion Annually for Climate Finance by 2030 at COP29.

Baku: The Islamic Development Bank (IsDB) and a consortium of multilateral development banks have issued a joint statement at the 29th session of the Conference of the Parties (COP29) to the United Nations Framework Convention on Climate Change in Baku, announcing significant commitments to climate finance. According to Saudi Press Agency, the coalition includes the African Development Bank, Asian Development Bank, Asian Infrastructure Investment Bank, Council of Europe Development Bank, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank, New Development Bank, and World Bank Group. They collectively aim to provide $120 billion annually by 2030 for climate financing in low- and middle-income countries, with $42 billion allocated for adaptation efforts and a target to mobilize $65 billion from the private sector. Additionally, for high-income countries, the annual climate financing is projected to reach $50 billion, with $7 billion earmarked for adaptati on, supplemented by $65 billion from private sector mobilization. The banks have surpassed their prior climate finance targets set for 2025, achieving a 25% increase in direct climate finance and doubling their climate mobilization efforts over the past year. Leaders from these banks have reiterated their commitment to enhancing the impact of climate financing by fostering collaboration with countries, supporting climate goals, and encouraging private investment. The multilateral development banks emphasized the urgent need for climate action and the importance of establishing a new collective climate finance goal at COP29. To ensure the quality and effectiveness of their efforts, they introduced a common results-measurement method, complete with new indicators and a shared framework to connect global progress in climate mitigation and adaptation with the outcomes of their activities. The banks reaffirmed their commitment to enhanced cooperation with host countries, banks, donors, and the private sector, a iming to strengthen efforts in climate finance and support global climate goals.