The world's six largest multilateral development banks (MDBs) continued to make a strong contribution to the global climate challenge in 2016, increasing their climate financing in developing countries and emerging economies last year to $27.4 billion from $25 billion in 2015, BSS reports.
Of the total, $21.2 billion or 77 percent was dedicated to climate mitigation finance, with the remaining 23 percent devoted to climate adaptation, said a media release on Monday.
Combined with additional co-financing from other investors, the total amount of finance mobilized for climate action reached $65.3 billion last year.
The MDBs have reported jointly on climate finance since 2011. Collectively, the banks have committed over $158 billion in climate finance during the past 6 years.
The latest MDB climate finance figures are detailed in the 2016 Joint Report on Multilateral Development Banks' Climate Finance, combining data from the African Development Bank, the Asian Development Bank (ADB), the European Bank for Reconstruction and Development, the European Investment Bank, the Inter-American Development Bank Group, and the World Bank Group.
"ADB acknowledges MDB's pivotal role in providing climate finance and remains committed to strengthen its collaboration with other MDBs and ultimately to the successful implementation of the Paris Agreement," said Bambang Susantono, ADB Vice-President for Knowledge Management and Sustainable Development.
"ADB has recently approved its Climate Change Operational Framework 2030, which will guide us in enhancing resilience and strengthening climate actions in the Asia and Pacific region," said Susantono.
Broken down by region, the largest share of last year's MDB climate finance went to South Asia, with 20 percent, followed by East Asia and the Pacific and non-EU Europe and Central Asia, with 19 percent and 18 percent, respectively, he said.
The Middle East and North Africa, at 9 percent, and Sub-Saharan Africa, at 7 percent, received the least climate finance, he added.
Susantono said "The MDBs also reported again on climate finance according to financial instrument. The vast majority of finance, or 73 percent, was provided in the form of investment loans".
He said the MDBs and the IDFC agreed on the Common Principles for Climate Adaptation Finance Tracking in July 2015. The MDBs and the IDFC have begun taking the next steps to harmonize their approaches in tracking adaptation finance, he added.