The world’s six largest multilateral development banks (MDBs) have increased their contribution to combat climate change by providing US$27.4bn in financing, up from US$25bn in 2015.
Of the total, US$21.2bn was dedicated to climate mitigation finance, while the remaining went to climate adaptation.
Combined with additional co-financing from other investors, the total amount of finance mobilised for climate action reached US$65.3bn.
The latest figures combine funding from the African Development Bank (AfDB), the Asian Development Bank (ADB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the Inter-American Development Bank (IADB) and the World Bank.
The largest share of financing in 2016 went to South Asia (20%) followed by East Asia and the Pacific (19%) and then non-EU Europe and Central Asia (18%). Meanwhile, the Middle East and North Africa both received 9% while Sub-Saharan Africa received 7%.
The majority of support, 73%, was provided in the form of investment loans.
The methodologies used by the MDBs to track climate finance align with the Common Principles for Climate Change Mitigation Finance Tracking, jointly agreed by the MDBs and by the International Development Finance Club (IDFC) and first published in March 2015.
The organisations are continuing to work on updating their joint tracking methodologies for mitigation and adaptation, to support the goals of the Paris Agreement, playing a key role in defining the finance flows consistent with a pathway towards low greenhouse-gas emissions and climate-resilient development.
Commenting on the figures, EBRD managing director of operational strategy and planning for energy efficiency and climate change, Josué Tanaka, says: “2016 is the first year the EBRD is reporting climate finance under its Green Economy Transition (GET) approach, which was launched at the COP21 Paris climate talks. With investments of US$3.5bn in climate finance in 2016, the EBRD is on track to achieve its 2020 target of 40% of total annual investment.”