MDBs pledge $120 billion for low-income nations at COP29
At COP29 in Baku, Azerbaijan, leading multilateral development banks (MDBs) announced plans to collectively mobilize $120 billion annually in climate financing for low- and middle-income countries by 2030, with $42 billion dedicated to adaptation.
The private sector is expected to contribute an additional $65 billion each year. High-income countries are set to receive $50 billion annually in climate finance, including $7 billion for adaptation.
The MDBs exceeded their 2025 climate finance projections by a 25% increase in direct climate funding and doubled mobilization efforts.
A key milestone was achieved with the operationalization of the Fund for responding to Loss and Damage. Agreements with the World Bank and the Philippines will enable project financing by 2025, and Sweden pledged $19 million, raising the fund’s total to over $720 million.
The World Leaders Climate Action Summit opened with addresses from prominent leaders including U.N. Secretary-General António Guterres and President Ilham Aliyev of Azerbaijan. Leaders emphasized the urgency for nations to enhance Nationally Determined Contributions (NDCs) and National Adaptation Plans (NAPs) and pledged support for a New Collective Quantified Goal on Climate (NCQG).