Multilateral development banks (MDBs) delivered a record $137 billion in climate finance in 2024, a 10% increase on the previous year, underscoring the growing urgency of global investment in the energy transition.
The figure, revealed in the latest Joint Report on MDBs’ Climate Finance, highlights both the scale of resources being mobilised and the central role of development institutions in bridging financing gaps.
Growing Flows to Developing Economies
The majority of the funding — more than $85 billion — was directed to low- and middle-income countries, marking a 14% rise compared with 2023. This reflects a deliberate pivot toward emerging economies, where climate vulnerabilities are most acute but opportunities for green transformation are immense. Mitigation projects absorbed the bulk of the funds, though adaptation finance — crucial for building resilience against floods, droughts, and rising temperatures — is beginning to gain traction.
High-income countries also received support, primarily for mitigation projects, but the emphasis on developing economies signals a rebalancing of global priorities.
Mobilising Private Capital
Alongside direct lending, MDBs were instrumental in catalysing $134 billion in private finance for climate action in 2024, a surge of 33% year-on-year. This mobilisation is essential. Public funds alone cannot meet the enormous financing requirements of the energy transition. By de-risking projects and providing blended finance instruments, MDBs are increasingly acting as multipliers, crowding in institutional investors, sovereign wealth funds, and climate-focused venture capital.
Africa in Focus
For Africa, the momentum is particularly significant. The continent remains highly exposed to climate shocks while also sitting on vast renewable energy potential and essential critical minerals. As Anthony Nyong, Director for Climate Change and Green Growth at the African Development Bank, observed, “Africa is pushing the pedal on actions that transform Africa’s green potential in energy, nature-based solutions, innovation and a vibrant workforce.”
MDB financing, combined with private investment, offers African economies the chance to accelerate clean power development, expand climate-smart agriculture, and invest in urban resilience. But unlocking this potential will require robust policy frameworks and governance structures capable of ensuring that funds translate into tangible results.
Building Towards COP30
These findings come as the world prepares for COP30 in Belém, Brazil, where climate finance is set to dominate discussions. At COP29 in Baku, governments agreed to scale up collective commitments to at least $1.3 trillion annually by 2035. The MDB report provides an important benchmark: while progress is evident, the gap between current flows and future needs remains vast.
For Africa, the stakes could not be higher. With the right policies, MDB-backed finance can help the continent leapfrog into a sustainable growth model. The record 2024 numbers are not just statistics; they are a signal that climate finance is moving from promise to delivery — and Africa stands to be one of its principal beneficiaries.
