In a united stance at the 2023 UN Climate Change Conference (COP 28), multilateral development banks (MDBs) have reaffirmed their commitment to a concerted global response to climate change, with a particular focus on increasing co-financing and private sector engagement to address the pressing challenges faced by Africa.
Despite contributing the least to global warming and having the lowest emissions, Africa bears the brunt of climate change’s devastating impacts. Recurrent droughts in the Horn of Africa and recent catastrophic floods in Libya, Malawi, Mozambique, Zimbabwe, and other parts of the continent have resulted in thousands of fatalities, destroyed infrastructure, wiped out vast areas of food crops, and threatened to push millions into extreme poverty.
Recognizing Africa’s vulnerability, the MDBs, in a joint statement issued in Dubai, UAE, pledged to collaborate on “socially inclusive, gender-responsive, and nature-positive climate and development actions,” leveraging their unique expertise and networks to make a tangible difference.
The signatories to the statement include the African Development Bank Group, the European Investment Bank, the Asian Development Bank, the Asian Infrastructure Investment Bank, the Council of Europe Development Bank, the European Bank for Reconstruction and Development,the Inter-American Development Bank Group, the Islamic Development Bank, the New Development Bank, and the World Bank Group.
To maximize impact, the MDBs will collaborate to attract private capital at scale for countries, expand the scope of reporting climate results and impact, and assist countries in identifying priorities and investment opportunities.
Furthermore, they committed to supporting countries’ adaptation and disaster risk management efforts through the MDBs’ Early Warning for All initiative, which aims to establish accessible and inclusive early warning systems for all by 2027. Additionally, the MDBs will launch a Long-term Strategies Program to help countries and subnational entities formulate long-term, low-emission development strategies and other long-term climate strategies.
The banks also expressed support for various sectors, including water, health, and gender, committing to identifying and expanding financing for gender-responsive solutions for governments and businesses.
According to a joint MDB report released in October, climate finance by Multilateral Development Banks for low-income and middle-income economies reached a new record of $60.7 billion in 2022, representing a 46% increase from 2019. Of this amount, approximately $38.0 billion (63%) was allocated to climate change mitigation finance, while $22.7 billion (37%) supported climate change adaptation. Private finance stood at $16.9 billion.
The MDBs’ collective action and increased financial commitments signal a renewed commitment to addressing climate change, particularly in Africa, where the need for urgent action is most pressing. By leveraging their combined resources and expertise, the MDBs can play a pivotal role in helping Africa build resilience and adapt to the changing climate