MDBs' climate finance for low, middle-income economies soars to $60.7 billion in 2022 - ETEnergyWorld
MDBs' climate finance for low, middle-income economies soars to $60.7 billion in 2022, ET EnergyWorld
MDBs' climate finance for low, middle-income economies soars to $60.7 billion in 2022
Breaking down the allocation, the report detailed that of the entire sum, $38 billion has been set aside specifically for tackling climate change, focusing on mitigation measures.
World Bank Group and
International Monetary Fund Annual Meetings in Marrakesh.
Breaking down the allocation, the report detailed that of the entire sum, $38 billion has been set aside specifically for tackling
climate change, focusing on mitigation measures. The other chunk, amounting to $22.7 billion, is dedicated to climate change adaptation initiatives. In tandem, the private sector pitched in with a noteworthy $16.9 billion for the cause.
For context, the report juxtaposed this year's figures with those of the previous year, highlighting that high-income economies were allocated $38.8 billion. A lion's share of this, $36.3 billion, was streamlined for mitigation, with a smaller portion, $2.5 billion, for adaptation. Meanwhile, private contributions for these economies were pegged at a substantial $51.9 billion.
A noteworthy mention in the report is that the 2022 contributions saw MDBs overshooting their own
climate finance targets, set for 2025 at the UN Secretary General’s Climate Action Summit back in 2019.
Warren Evans, representing the
Asian Development Bank(ADB), opined on the findings, stating, "The upward trajectory in MDB climate finance, especially for the low- and middle-income segment, is certainly a positive sign. But the journey doesn't end here. There’s a critical need for escalated actions, more so in the Asia-Pacific belt."
Adding another layer to the narrative, the Joint Report on MDBs Climate Finance incorporated comprehensive data from all ten MDBs. It spotlighted that, even excluding the latest entrants - the Council of Europe Development Bank and New Development Bank, the global climate finance touched a whopping $98 billion this year.
Commenting on the unveiling, Dr
Sultan Al Jaber, the designated President for COP28, remarked, "The resonating figures in the joint report are a testament that global calls for action aren't falling on deaf ears. As the compass points to COP28, it's evident that ramping up climate finance will be a linchpin in our collective endeavor to ensure the 1.5C benchmark remains intact."
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”