Multilateral development banks increase climate finance to record $163 billion in 2025, supporting climate-resilient and sustainable growth

• Multilateral development banks’ climate finance in low-and middle-income countries jumps 21% to $103 billion last year, according to their new annual report.
• MDB adaptation finance in low- and middle-income economies rose 31% to $35 billion, and mitigation finance rose 16% to $68 billion.
• MDBs on track to meet their 2030 climate-finance projections across all their countries of operation.

Multilateral development banks (MDBs) including the Council of Europe Development Bank (CEB) increased climate finance to record levels in 2025, reinforcing their role in supporting climate-resilient and sustainable economies. Climate finance by MDBs in low- and middle-income countries jumped 21% from the previous year to an all-time high of $103 billion while MDB climate finance across all countries of operation rose 19% to a record $163 billion.

The results, published today in the 2025 Joint Summary Report on Multilateral Development Banks’ Climate Finance, confirm that MDBs are on track to meet their 2030 projections announced at the United Nations climate conference COP29 in Baku in 2024.

“As Europe’s social development bank, the CEB brings a people-centred perspective to climate finance. We finance projects that help communities adapt to climate risks, protect vulnerable groups, and ensure that the transition to a low-carbon future is both just and inclusive,” said CEB Governor Carlo Monticelli.

In low- and middle-income economies, MDB climate finance has doubled over the past five years. Of the $103 billion amount in 2025, mitigation accounted for the largest share at $68 billion while adaptation finance continued to grow rapidly to $35 billion. Private-sector mobilisation in these countries reached $35 billion.

In high-income economies, MDB climate finance in 2025 also remained substantial, meeting or exceeding 2030 projections five years in advance and supporting primarily mitigation efforts with $53 billion, alongside adaptation investments of $7 billion. Private finance mobilisation in these countries reached $80 billion.

For the joint summary report with the overview of 2025 figures click here.

For the CEB, climate finance remains a co-benefit of its social operations with almost 40% of approved operations in 2025 included climate co-benefits, while climate finance amounted to around €594 million, representing 13% of total CEB financing approved. In addition, note that more than one-third of operations approved in 2025 are expected to deliver just transition co-benefits.

MDB climate finance

At COP29 in Baku, MDBs set out their collective ambition to scale up climate finance to support countries and other clients with their low-carbon, resilient development plans. By 2030, they projected to provide $120 billion annually in collective climate finance for low- and middle-income countries, including $42 billion for adaptation, while mobilising an additional $65 billion a year from the private sector. For high-income countries, MDBs projected $50 billion a year in climate finance by 2030, including $7 billion for adaptation, alongside a further $65 billion in mobilised private finance.

At COP30 in Belém, MDBs reaffirmed their commitment to continue to work together as a system to assist clients, helping them benefit from the opportunities of climate smart development.

Advancing transparency

MDBs are advancing their joint digitalisation efforts to improve the transparency, accessibility and usability of climate finance data.

Launched in April 2026, the pilot version of the MDB Climate Finance Dashboard complements the joint summary report by providing more granular data, detailed breakdowns and the full set of harmonised methodologies used by MDBs. Through interactive tables and visualisations, stakeholders can explore climate finance data in a more flexible and intuitive way, enhancing both understanding and usability.

MDB joint reporting on climate finance

The 2025 MDB climate finance reporting is coordinated and prepared for publication by the EIB, with assistance from the European Bank for Reconstruction and Development (EBRD). The reporting combines data from the African Development Bank (AfDB), the Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB), the Council of Europe Development Bank (CEB), the EBRD, the EIB, the Inter-American Development Bank Group (IDBG), the Islamic Development Bank (IsDB), the New Development Bank (NDB) and the World Bank Group (WBG).