Development Banks Invested $137 Billion for Climate Finance in 2024
Multilateral development banks (MDBs) have stunned the international development community by pumping a record‑breaking US$ 137 billion into climate finance in 2024, marking a 10 percent rise on the year before.
The surge, unveiled today in a joint MDB report, was led by institutions such as the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD), underscoring their intensified commitment to global sustainability and the growing confidence in climate investment.
Even more striking, these MDBs mobilised a whopping US$ 134 billion in private capital for climate action, a commendable 33 percent jump from 2023.
Mitigation, Adaptation and Accessibility
A large chunk, US$ 85.1 billion, went straight to low‑ and middle‑income economies, where climate resilience is most urgent. These nations saw climate finance more than double over the past five years, with a 14 percent increase from 2023 alone. Of that sum, 69 percent (US$ 58.8 billion) targeted mitigation, think renewables and low‑carbon infrastructure, while 31 percent (US$ 26.3 billion) addressed adaptation, helping countries brace for intensifying climate impacts.
Meanwhile, high‑income countries weren’t left behind: they received US$ 51.5 billion, of which 90 percent (US$ 46.5 billion) was earmarked for mitigation and 10 percent (US$ 5 billion) for adaptation, with private finance in these countries hitting US$ 101 billion.
Transparency and Real-Time Tracking on the Horizon
MDBs are not just managing money, they’re also stepping up transparency. In a bid to make climate finance data more accessible and user-friendly, they are rolling out a digitalisation initiative.
This year, the joint 2024 report is being launched as a visually engaging summary infographic; by late 2025, an interactive web platform will allow stakeholders to monitor climate finance flows in real time. The project is set to make its debut at COP30 in Belém, Brazil, in November 2025.
COP30 and the Road to Trillions
With COP30 just around the corner, these figures aren’t just numbers, they’re design cues for global climate diplomacy. At COP29 in Baku (November 2024), MDBs pledged to ramp up their climate finance: US$ 120 billion annually for low‑ and middle‑income countries by 2030 (including US$ 42 billion for adaptation), while mobilising another US$ 65 billion annually from private sources.
High‑income countries were slated to receive US$ 50 billion, with US$ 7 billion earmarked for adaptation and an additional US$ 65 billion in private investments.
That Baku summit also saw broader commitments that include:
- A $7.2 billion investment from the Asian Development Bank (ADB), backed by US and Japan underwriting sovereign loans.
- A $300 million five‑year pledge from Acumen for agricultural adaptation in Africa, Asia and Latin America.
- A Climate Investment Funds bond programme, aiming to raise $75 billion over the next decade.
Yet such pledges stirred debate, poorer nations derided a proposed $300 billion target by 2035 as grossly inadequate given the scale of need; they’re calling for something closer to half a trillion annually.
Construction, Investment and Policy
For construction professionals, industry investors and policymakers, these trends are game‑changers. Here’s why it matters:
- Infrastructure Investment Boom
With such massive flows into green cities, clean energy and water systems, there’s a wealth of opportunities in low‑carbon construction, retrofitting, and climate‑resilient infrastructure.
- Private Sector Momentum
The sharp rise in private capital, especially in higher‑income economies, signals strengthening returns and appetite for green bond‑backed or blended‑finance structures.
- Data Transparency = Smarter Planning
The launch of a real‑time digital platform will empower stakeholders with granular insights on project flows and sectoral trends, helpful for targeting opportunities and planning.
- Policy Guidance from MDB Pledges
As MDBs firm up their 2030 pledges, governments and regulators can synchronise policies, whether it’s adjusting building codes, offering tax incentives, or aligning public infrastructure pipelines with MDB frameworks.
Positive Momentum Building
MDBs’ collective scaling up of climate finance is a promising sign that the system is agile and responsive. The record US$ 137 billion isn’t just a headline, it’s proof that global finance can shift at speed when institutions unite around a common goal.
Still, to stay the course, sustained focus is crucial: equitable adaptation finance, deeper private engagement, and clarity in tracking systems will be essential. With COP30 approaching, stakeholders across construction, investment and policy will be watching, and ready to act.
