South Asia gets largest share of funding for climate change from development banks

Jun 18, 2015 (LBO) – Six multilateral development banks (MDBs) delivered over 28 billion US dollars in financing in 2014 to developing countries and emerging economies to mitigate and adapt to the challenges of climate change, a report said.

“Among the regions, South Asia received the largest share of total funding, at 21 percent,” the fourth joint report on MDB climate finance said.

“Latin America and the Caribbean, non-EU Europe and Central Asia, Sub-Saharan Africa, and East Asia and the Pacific received 17 percent, 16 percent, 15 percent and 10 percent respectively.”

The report says, 36 percent of the total in adaptation funding went into agriculture and ecological resource projects and 40 percent went into projects involving infrastructure, energy and the built environment.

Renewable energy was the most common mitigation project, drawing 35 percent of the funding while energy efficiency accounted for 22 percent.

The banks also invested heavily in sustainable transport, at 27 percent of the total.

“The latest figures bring total collective commitments of the past four years to more than 100 billion US dollars,” the report said.

“In 2014, the six banks together provided over 23 billion US dollars dedicated to mitigation efforts and 5 billion US dollars for adaptation work,”

The report was prepared by the African Development Bank (AfDB), the Asian Development Bank (ADB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the Inter-American Development Bank (IDB) and the World Bank Group (WBG).

Of the total commitments in 2014, 91 percent came from MDBs’ own resources, while the remaining 9 percent, or 2.6 billion US dollars, came from external resources including bilateral or multilateral donors, the Global Environment Facility, and the Climate Investment Funds.