The world’s six largest multilateral development banks say they are increasing their investments to help poorer countries take action on climate change.
In 2015, the banks already mobilised a total of $81 billion according to new figures released this week (9 August) as part of a joint annual report.
Looking ahead, the report says that the banks are now “significantly scaling up” their investments “across multiple sectors.”
The participating banks include the Asian and African development banks, the EU’s investment bank and bank for reconstruction and development, the Inter-American development bank and the World Bank.
In a statement, the banks highlight a pledge they made “to significantly increase their climate finance in the coming years.” The banks made the promise in the run up to the Paris climate summit which resulted in the world’s first universal climate agreement.
The banks say they are also working together to further “scale up financial resources” by “aggregating and de-risking” public and private investments from other parties.
Last year’s $81 billion included $25 billion of banks’ own funding and was supplemented by $56 billion from other investors.
Key sectors set to benefit from the new investment push are renewable energy and energy efficiency as well as low-carbon and climate-resilient cities according to the report.
By 2050 more than two thirds of the world’s population is expected to live in urban areas. Cities are currently already responsible for up to 80 per cent of the world’s greenhouse gas emissions.
Regions and industries, low-carbon transport, natural resource efficiency and climate-smart agriculture and food security can also expect a major boost the report says.
The increase in investment should “help countries meet their commitments under the Paris Agreement, helping them move to a low-carbon, more resilient future,” the banks say.
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