Development Banks Lead Increased Climate Finance Commitments Post-COP29
Multilateral development banks, including the World Bank and European Investment Bank, are expected to spearhead increased climate finance to meet a $1.3 trillion annual target for developing countries, with immediate funding hikes anticipated by 2025.
Published on March 30, 2025
At COP29 in November 2024, multilateral development banks such as the World Bank and European Investment Bank signaled a robust push to expand climate finance for developing countries. Relying on their unique mandates and substantial funding capabilities, these institutions are set to increase lending by tens of billions of dollars by 2025.
In addition, a roadmap aiming to unlock $1.3 trillion in annual funding for developing nations has been established. Early investments and coordinated efforts are expected to mobilize additional capital, including from the private sector, marking a significant step forward in addressing climate-related challenges in low- and middle-income regions.