Development banks are spending more than ever on climate mitigation and adaptation projects within emerging economies, reports the Climate Action Programme. The six biggest multilateral development banks (MDBs) invested $35.2 billion in climate financing in 2017, a 28 percent rise on the previous year and the highest since recording began in 2011.
The development shows how financial institutions are more willing to provide funds to reduce emissions and prevent runaway climate change according to the website. Amongst the banks supporting climate finance were the European Bank for Reconstruction and Development (EBRD), the African Development Bank, the Asian Development Bank, the European Investment Bank, the Inter-American Development Bank Group and the World Bank Group.
The banks’ financial support went into projects in all areas of the globe: 28 percent of the financing supported projects across Asia and the Pacific; 20 percent went into Latin America and 16 percent was invested in Sub-Saharan Africa.
The sector that was most successful in achieving finance was the renewable energy sector with funds totalling $9.2 billion over the past year. Transport also received $8.1 billion and the energy efficiency sector recorded $3.9 billion.
Over the past seven years the six banks invested $194 billion with the World Bank committing the largest amounts year-on-year according to the Climate Action Programme.