2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

2 022

CLIMATE

FINANCE

JOINT REPORT

ON MULTILATERAL

DEVELOPMENT

BANKS’

2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

All questions on rights and licensing should be addressed to publicat[email protected]

For further information on the EIB’s activities, please consult our website, www.eib.org.

You can also contact our info Desk, info@eib.org.

Published by the European Investment Bank.

NOVEMBER 2023

This report was written by a group of multilateral development banks (MDBs),

composed of the African Development Bank (AfDB), the Asian Development

Bank (ADB), the Asian Infrastructure Investment Bank (AIIB), the Council of

Europe Development Bank (CEB), the European Bank for Reconstruction

and Development (EBRD), the European Investment Bank (EIB), the Inter-

American Development Bank Group (IDBG), the Islamic Development Bank

(IsDB), the New Development Bank (NDB) and the World Bank Group (WBG).

The ﬁndings, interpretations and conclusions expressed in this work do not

necessarily reﬂect the ofﬁcial views of the multilateral development banks’

boards of executive directors or the governments they represent.

This November 2023 publication of the report (Version 1.1) supersedes

the earlier edition published in October 2023. Version 1.1 introduces

corrections to climate co-ﬁnance information, plus a small climate

mitigation ﬁnance adjustment.

JOINT REPORT ON MULTILATERAL

DEVELOPMENT BANKS’

CLIMATE

FINANCE

2 022

iv Abbreviations and acronyms

v Preface

viii Executive summary

1 1. OVERVIEW OF MDB METHODOLOGIES FOR TRACKING CLIMATE FINANCE

1 1.1. Finance for adaptation to climate change

2 1.2. Finance for mitigation of climate change

4 1.3. Methodology for climate co-ﬁnance

7 2. MDB CLIMATE FINANCE IN LOW- AND MIDDLE-INCOME ECONOMIES, 2022

7 2.1. Total MDB climate ﬁnance

8 2.1.1. MDB climate ﬁnance by type of recipient or borrower

9 2.1.2. MDB climate ﬁnance by type of instrument

10 2.1.3. MDB climate ﬁnance by region

10 2.2. MDB adaptation ﬁnance

14 2.3. MDB mitigation ﬁnance

18 2.4. Climate co-ﬁnance

21 3. MDB CLIMATE FINANCE IN HIGH-INCOME ECONOMIES, 2022

21 3.1. Total MDB climate ﬁnance

22 3.1.1. MDB climate ﬁnance by type of recipient or borrower

23 3.1.2. MDB climate ﬁnance by type of instrument

24 3.1.3. MDB climate ﬁnance by region

24 3.2. MDB adaptation ﬁnance

28 3.3. MDB mitigation ﬁnance

32 3.4. Climate co-ﬁnance

35 ANNEX A. Further detailed analysis of total MDB climate ﬁnance data, 2022

53 ANNEX B. Geographical coverage of the report, 2022

65 ANNEX C. Methodologies and deﬁnitions

CONTENTS

ADB Asian Development Bank

AfDB African Development Bank

AIIB Asian Infrastructure Investment Bank

CCF Climate co-ﬁnance

CEB Council of Europe Development Bank

CIF Climate Investment Funds

Carbon dioxide

EBRD European Bank for Reconstruction and Development

EIB European Investment Bank

EU European Union

€ Euro

FY Fiscal year

GEF Global Environment Facility

GCF Green Climate Fund

GHG Greenhouse gas

IBRD International Bank for Reconstruction and Development

IDA International Development Association

IDB Inter-American Development Bank

IDBG Inter-American Development Bank Group, composed of the IDB, IDB Lab and IDB Invest

IDB Invest The private sector arm of the IDBG

IDB Lab The innovation laboratory of the IDBG

IDFC International Development Finance Club

IFC International Finance Corporation

IsDB Islamic Development Bank

LDCs Least Developed Countries

MDBs Multilateral development banks

MIGA Multilateral Investment Guarantee Agency

NAMAs Nationally Appropriate Mitigation Actions

NDCs Nationally Determined Contributions

NDB New Development Bank

SIDS Small Island Developing States

UNFCCC United Nations Framework Convention on Climate Change

$ United States dollar

WBG World Bank Group, composed of the IDA, IBRD, IFC and MIGA

ABBREVIATIONS AND ACRONYMS

The Joint Report on Multilateral Development Banks’ Climate Finance is

an annual collaborative effort to publish Multilateral Development Banks’

(MDBs’) climate ﬁnance ﬁgures, together with a clear explanation of the

methodologies for tracking this ﬁnance as climate ﬁnance. This joint report,

alongside the banks’ publication of climate finance statistics in their

respective corporate media, is intended to track progress in relation to

their joint climate ﬁnance targets such as those announced at COP21 and

the greater ambition pledged for the post-2020 period. This year’s report

brings Council of Europe Development Bank and New Development Bank’s

climate ﬁnance fully into the MDB reporting, so that for the ﬁrst time, all ten

MDBs’ climate ﬁnance is included in the aggregated data reported.

There have been several recent developments that are relevant to MDB climate finance. The

Independent Review of MDBs’ Capital Adequacy Frameworks

, published in July 2022, analyses

how MDBs can use public resources in the most efﬁcient and effective way. The report presents

ﬁve key recommendations

to free up additional lending headroom. The independent High Level

Expert Group published a report at COP27 also calling for major increases in MDB climate ﬁnance.

COP27 also produced the Sharm El Sheik Implementation Plan. Prior to COP27, the Bridgetown

Initiative, championed by Prime Minister Mottley of Barbados in September 2022, called on

global leaders to reform the global ﬁnancial architecture in response to multiple global crises.

With additional momentum from COP27, to further accelerate climate action and sustainable

development, President Macron of France co-hosted with Prime Minister Mottley a Summit for a

new Global Financing Pact in June 2023, which called on MDBs to step up ambitions to address

global challenges and achieve SDGs. The MDBs’ transparent joint reporting on their climate ﬁnance

can provide useful data to inform the international discussions.

Since the ﬁrst Joint Report on Multilateral Development Banks’ Climate Finance, which covered

climate ﬁnance for 2011, ﬁgures reported for climate ﬁnance have been based on a joint MDB

climate ﬁnance tracking and reporting methodology. This methodology has been gradually updated

as and when the need arose, particularly in light of experience and global developments in this

space. The ﬁrst eight editions of the report provided climate ﬁnance data on a group of emerging

and developing economies which included low- and middle-income as well as some high-income

countries. From 2019 onwards, the MDBs’ annual report included data for all countries of

operation of the MDBs, with data split by country-income level to improve transparency and with

a focus on low- and middle-income economies. In addition, responding to user requests for a

more comprehensive breakdown, a new Annex with additional details on climate ﬁnance in Least

Developed Countries and Small Island Developing States is added to this year’s report.

Some important methodological changes have occurred since last year’s report: the original,

smaller group of MDBs had already in 2011 developed a harmonised climate ﬁnance tracking

methodology and published it in their ﬁrst joint reports. In 2015, the MDBs and the International

Development Finance Club (IDFC

) worked together to agree on a set of common principles for

ﬁnance to mitigate climate change and an initial set of common principles for ﬁnance to support

adaptation to climate change. The intention was for a wider group of public banks to take a

common approach to track and report on climate ﬁnance. The MDBs and IDFC published a new

version of the Common Principles for Climate Change Mitigation Finance Tracking in October 2021,

which includes a more granular breakdown of types of eligible activity, clear criteria that must be

1 https://www.dt.mef.gov.it/export/sites/sitodt/modules/documenti_it/rapporti_finanziari_internazionali/rapporti_finanziari_

internazionali/CAF-Review-Report.pdf

2 The ﬁve recommendations include re-evaluating MDB risk limits, recognising the beneﬁts of callable capital, expanding the use of ﬁnancial

innovations, enhancing dialogue with credit rating agencies, and promoting greater transparency regarding MDB credit performance.

3 www.idfc.org

PREFACE

Preface |

met and additional guidance to facilitate the application of these criteria. In this year’s report, all

MDBs in the current group of ten MDBs have applied this updated methodology for determining

2022 climate change mitigation ﬁnance.

In 2022, the MDBs worked to update their joint methodology for tracking adaptation ﬁnance. This

update was agreed by all MDBs and launched at COP27: it reﬂects the evolving understanding

of adaptation and the advancements in the field of adaptation finance in recent years. The

2022 methodology complements ongoing efforts by the MDBs to enhance the robustness and

transparency of climate ﬁnance tracking and reporting and support climate action, in line with the

objectives of the Paris Agreement, and will be adopted from 2023 onwards. This year’s report, as it

covers 2022 ﬁnance, still reports using the old methodology.

The MDBs will continue to improve their tracking and reporting of climate ﬁnance as an important

part

of their overall commitments to ensure that ﬁnancial ﬂows are consistent with a pathway to

low greenhouse gas emissions and climate-resilient development, as established in Article 2.1(c)

of the Paris Agreement. In particular, MDBs continue to work closely with IDFC on improving climate

ﬁnance tracking, and MDBs and IDFC are now working to update the common principles for climate

adaptation and mitigation ﬁnance tracking, aiming to share them later in 2023.

At the UN Secretary General’s Climate Action Summit in New York in September 2019, the MDBs

made a high-level statement on their joint climate actions looking forward to 2025. This included

delivering an expected collective total of $50 billion climate ﬁnance for low-income and middle-

income economies, at least $65 billion of climate ﬁnance globally, with an expected doubling in

adaptation finance to $18 billion; and private mobilisation of $40 billion. In 2022 the MDBs

surpassed these collective expectations on climate ﬁnance — both for low- and middle-income

economies and globally. They also notably increased adaptation ﬁnance to over $25 billion in all

economies in which the MDBs operate. The table in Annex C.6. summarises individual post-2020

MDBs’ climate commitments.

The MDBs presented updates on their work to align their ﬁnance ﬂows with the Paris Agreement in

November 2022

. The multilateral development banks have all set their own timelines to implement

the MDB Paris Alignment Framework

whilst working together on joint tools and approaches, and

some MDBs have already put in place approaches for all Six Building Blocks

. Financial flows

presented in this report are based on climate ﬁnance methodologies that are separate and distinct

from the MDB Paris Alignment Framework, although all climate finance should also be Paris-

aligned, within the time frame set by each MDB for implementation.

As well as continuing to work on climate ﬁnance tracking and on further aspects of their Paris

Alignment Six Building Block framework, MDBs intend to work together on improving assessment

and reporting climate outcomes and climate impacts of their ﬁnancing. Many MDBs work actively

with the IFI working group on greenhouse gas (GHG) accounting where harmonised GHG reporting

methodologies are developed, and several MDBs have worked together on impact reporting for

Green Bonds and on climate-resilience metrics since 2019 when MDBs and members of the

IDFC published the joint Framework and Principles for Climate Resilience Metrics in Financing

Operations, setting out the core concepts and characteristics of climate resilience metrics

alongside a high-level framework for such metrics in financing operations. MDBs' climate

outcomes and climate impacts work is therefore not new but now warrants increased focus, taking

account also of recent developments in ﬁnancial markets’ reporting.

4 “Accelerated contribution to the transition through climate ﬁnance” — Building Block 3 of MDBs’ joint framework: Multilateral Development

Banks announce joint framework for aligning their activities with the goals of the Paris Agreement (eib.org)

5 Progress Report: Multilateral Development Banks Working Together for Paris Alignment (eib.org)

6 MDBs agree how to align new ﬁnancial ﬂows with the Paris Agreement goals (eib.org)

7 The six building blocks are: (i) alignment with mitigation goals, (ii) adaptation and climate-resilient operations, (iii) accelerated contribution

to the transition through climate ﬁnance, (iv) engagement and policy development support, (v) reporting, and (vi) alignment of internal

activities. As part of this ongoing work, the MDBs published in June 2023 their joint methodological principles for alignment of new

ﬁnancing with the goals of the Paris Agreement. This includes methodological guidance on how to implement the new operations aspects

of Building Blocks 1 and 2 of MDBs’ joint PA framework, for different types of ﬁnancing instruments.

vi | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

This edition of the Joint Report on Multilateral Development Banks’ 2022 Climate Finance was

prepared by the European Investment Bank together with partners the African Development 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.

This new version of the report replaces

November 2023

Download this report at:

www.eib.org/2022-joint-report-on-mdbs-climate-ﬁnance

Download the infographic summary at:

www.eib.org/2022-joint-report-on-mdbs-climate-ﬁnance-infographic

Preface |

vii

This 12

edition of the Joint Report on Multilateral Development Banks’

Climate Finance is an overview of climate finance committed in 2022

by the African Development Bank (AfDB), the Asian Development Bank

(ADB), the Asian Infrastructure Investment Bank (AIIB), the Council of

Europe Development Bank (CEB), the European Bank for Reconstruction

and Development (EBRD), the European Investment Bank (EIB), the Inter-

American Development Bank Group (IDBG), the Islamic Development Bank

(IsDB), the New Development Bank (NDB) and the World Bank Group (WBG).

As in previous years, the data and statistics presented in this year’s report result from the

application of the harmonised methodologies developed jointly by the multilateral development

banks (MDBs) for their annual commitments. In this report, the term “MDB climate ﬁnance” refers

to the ﬁnancial resources (from own accounts and MDB-managed external resources) committed

by the MDBs to operations, and components thereof, directed to activities that mitigate climate

change and/or support adaptation to climate change. The term “climate co-ﬁnance” refers to the

volume of ﬁnancial resources invested by other public and private external parties alongside the

MDBs for climate change mitigation and adaptation activities. The MDBs have reported jointly on

climate ﬁnance since the ﬁrst edition in 2012, which reported ﬁgures for 2011, and have added

joint reporting on climate co-ﬁnance since the 2015 edition. Starting with the 2019 report, for the

purpose of greater transparency and consistency the multilateral development banks agreed to

start reporting on all economies where these banks operate, while maintaining the report’s focus

on low- and middle-income economies

. This change allowed for a clear breakdown by country

income level.

The MDB climate ﬁnance commitments are presented in this report in two main groups: (1) low-

income and middle-income economies, a grouping that includes low, lower-middle and upper-

middle income economies, and (2) high-income economies. These data sets are presented in two

separate chapters in this and last year’s report. The MDBs endeavoured to attribute any climate

ﬁnance falling within the category of global, multi-regional and regional projects to speciﬁc income

groups. The economies are categorised by income group in accordance with the World Bank

Group’s classiﬁcation dated June 2022 (see Tables B.1 and B.2). This version of the report also

provides further analysis on the MDBs' climate ﬁnance in LDCs and SIDS in Annex A.5.

LOW- AND MIDDLE-INCOME ECONOMIES

In 2022, $60.9 billion was for low-income and middle-income economies. $38.2 billion, or 63%

of this total, was for climate change mitigation ﬁnance and $22.7 billion or 37% was for climate

change adaptation ﬁnance.

In 2022, MDBs reported $48.7 billion of their climate ﬁnance for public recipients and $12.3 billion

for private recipients in low- and -middle income economies.

The report also shows that MDB climate ﬁnance investments in low-and-middle income economies

are supported by a total of $ 46.3 billion climate co-ﬁnance, with 58% in mitigation activities and

42% in adaptation activities. 67% of climate co-ﬁnance in low-and middle-income economies came

from public sources and 33% from private sources.

HIGH-INCOME ECONOMIES

In 2022, $38.8 billion was allocated for high-income economies. $36.3 billion, or 94% of this total,

was for climate change mitigation ﬁnance and $2.5 billion or 6% was for climate change adaptation

ﬁnance.

8 Before 2019, the joint MDB report covered climate ﬁnance for developing and emerging economies.

EXECUTIVE SUMMARY

viii | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

In 2022, the multilateral development banks reported $20.0 billion of their climate ﬁnance for

public recipients and $18.8 billion for private recipients in high-income economies.

The report also shows that MDB climate finance investments high income economies are

supported by a total of $ 71.3 billion climate co-ﬁnance, with 80% in mitigation activities and 20%

for adaptation activities. 45 % of climate co-ﬁnance in high-income economies came from public

sources and 55% from private sources.

Figure 1a presents MDB climate finance commitments reported for 2019-2022 for low- and

middle-income economies where the MDBs operate, while Figure 1b shows MDB climate ﬁnance

commitments reported for the same period for high-income economies where the banks operate.

$ billion

2019 2020 2021 2022

AfDB

ADB

ADB CEBAIIB

Figure 1a. MDBs’ climate ﬁnance commitments in low- and middle-income economies, 2019-22 (in $ billion)

18.4

4.4

3.6

3.9

7.1

3.6

41.5

0.5

21.3

3.2

2.5

5.3

2.3

38.0

0.3

28.0

4.8

3.4

4.8

2.7

3.9

2.4

50.7

3.7

7.1

2.3

4.3

4.2

5.9

1.1

31.7

60.9

0.7

(0.9)

2.1

1.1

0.5

0.3

4.8

EBRD

EIB IDBG IsDB NDB WBG

Executive summary |

$ billion

AIIB CEB EBRD EIB IDBG WBG

Figure 1b. MDBs’ climate ﬁnance commitments in high- income economies, 2019-22 (in $ billion)

18.1

20.1

0.5

1.1

0.4

24.6

28.0

28.1

31.1

32.9

2.5

38.8

0.9

1.6

0.8

0.7

1.6

0.6

0.1

1.3

0.5

1.4

20202019 2021 2022

Notes for Figures 1a and 1b:

1. Starting in 2021, the reporting of ADB’s climate ﬁnance is based on commitments or signatures and not on approvals. This is in accordance

with the decision made in 2017 to measure and report ADB’s corporate performance based on commitments up to 2030.

For ADB, External Resources under Management (ERUM) includes ADB-administered ﬁnancial resources from ﬁnancing partners, including

AIIB. ADB administers ﬁnancing from AIIB for several projects, some of which have components that contribute to climate ﬁnance.

For 2022, ADB reports climate adaptation ﬁnance of $7 million and climate mitigation ﬁnance of $7 million from ADB-administered

ﬁnancing from AIIB. To avoid double counting, these amounts are excluded from the total MDB amounts for 2022 as AIIB reports climate

ﬁnance for the same projects as a share of its ﬁnancing under own resources.

The project under this situation belongs to the category of public recipient in the East Asia and the Paciﬁc region; it is a grant and is

implemented under the category of “Agriculture, forestry, land use and ﬁsheries” and “Other agricultural and ecological resources”. A similar

situation occurred in 2021, when $0.9 billion of ADB climate ﬁnance was excluded from the total MDB amounts to avoid double counting.

2. IDBG’s ﬁgures have included all climate ﬁnance for public and private borrowers or beneﬁciaries in all 26 IDBG borrowing member countries,

via its three operational windows — IDB, IDB Invest and IDB Lab — on the basis of approval by the respective Boards of Executive Directors.

From 2020 onward, for IDB Invest only, the ﬁgures refer to total commitments of long-term ﬁnance, in an effort to more accurately reﬂect

actual investments as well as the mobilisation of private-sector actors. In 2022, IDBG climate ﬁnance consisted of: $5.9 billion through IDB;

$1.3 billion through IDB Invest; and $24 million through IDB Lab.

3. The IsDB-reported climate ﬁnance commitment excludes operations of some IsDB Group members, namely the Islamic Corporation for

the Development of the Private Sector (ICD), the International Islamic Trade Finance Corporation (ITFC) and the Islamic Corporation for the

Insurance of Investment and Export Credit (ICIEC).

4. EIB 2019-22 climate ﬁnance commitments shown here include all EIB countries of operation, including all EU economies, whereas only

some EU economies’ climate ﬁnance commitments are made by the EIB; EBRD and WBG were included in 2018 and earlier MDB reports.

Please see Annex B for details of speciﬁc geographical coverage in past editions of the Joint Report.

5. WBG climate ﬁnance resources (including own-account and managed external resources) for IFC, MIGA and the IDA and IBRD were $4.5

billion (including $103 million of managed external resources), $1.1 billion and $27.4 billion (including $1.3 billion of managed external

resources), respectively, for the ﬁscal year (FY) 2022, which covers the period from 1 July 2021 to 30 June 2022. IFC’s total commitments

of own-account long-term ﬁnance in FY22 were $12.6 billion and IFC reached a level of 35% on long-term ﬁnance own-account climate

commitments. For MIGA, total investments guaranteed in FY22 amounted to $4.1 billion and climate ﬁnance reached 28%. IDA and IBRD

total own-account commitments were $70.8 billion and the share of its climate-related ﬁnancing reached 37%.

6. CEB, EBRD and EIB climate ﬁnance ﬁgures in this chart are based on the annual average European Central Bank rate. For 2022 the

exchange rate used is €1 = $1.053.

7. Numbers in the tables and ﬁgures in this report may not add up to the totals shown, due to rounding.

8. CEB and NDB 2022 climate ﬁnance data have been presented in Figures 1a and 1b for the ﬁrst time, as they did not report their climate

ﬁnance data in previous reports together with the climate ﬁnance data from the other MDBs.

a. Presenting climate ﬁnance data separately from the joint ﬁgure, the CEB committed a total of $621 million in climate ﬁnance in 2021.

b. Presenting climate ﬁnance data separately from the joint ﬁgure, the NDB committed a total of $816 million in 2020, and a total of $509

million in climate ﬁnance in 2021.

9. The numbers on the top of the columns show the totals for each year, in $ billion

x | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

The multilateral development banks apply two distinct methodologies — with fundamentally

different approaches — to tracking climate change adaptation ﬁnance (or “adaptation ﬁnance”)

and climate change mitigation ﬁnance (or “mitigation ﬁnance”). Both methodologies, however,

track and report climate ﬁnance in a granular manner. In other words, the climate ﬁnance reported

covers only those components and/or sub-components or elements or proportions of projects that

directly contribute to or promote adaptation and/or mitigation.

The multilateral development banks estimate adaptation ﬁnance using the joint MDB methodology

for tracking climate change adaptation finance, which involves a three-step approach. This

methodology is based on a context- and location-speciﬁc, granular and conservative approach

and captures the amounts associated with activities directly linked to vulnerability to address

climate change. The banks try as far as possible to differentiate between their usual development

ﬁnance and ﬁnance provided with an explicit intent to reduce vulnerability to climate change. This

methodology has been updated using a new joint methodology in October 2022

. In July 2015

the multilateral development banks and the IDFC agreed an initial set of Common Principles for

Climate Adaptation Finance Tracking

. The organisations continue to harmonise their approaches

to tracking adaptation ﬁnance. Climate change adaptation ﬁnance in 2022 totalled $25.2 billion, of

which 90% was directed at low- and middle-income economies.

The multilateral development banks’ methodologies for tracking climate change mitigation ﬁnance

align with the Common Principles for Climate Change Mitigation Finance Tracking

that the MDBs

and the IDFC jointly agreed and ﬁrst published in March 2015. At COP24 in 2018 they announced a

plan to work jointly to review and strengthen the Common Principles for Climate Change Mitigation

Finance Tracking. Mitigation ﬁnance is estimated in accordance with the joint MDB methodology

for tracking climate change mitigation ﬁnance, which is based on a list of activities in sectors

and sub-sectors that reduce greenhouse gas emissions and are compatible with low-emission

development. In 2020, the banks ﬁnalised their review of the methodology for tracking climate

change mitigation ﬁnance and commenced tracking using the new methodology on 1 January

2021 for AfDB, ADB, AIIB, CEB, EBRD, EIB, IDBG, IsDB and NDB and on 1 July 2021 for the WBG,

to coincide with each institution’s new ﬁscal year. The new version of the methodology includes a

more granular breakdown of types of eligible activity, clear criteria that must be met and additional

guidance to help interpretation. Climate change mitigation ﬁnance in 2022 totalled $74.2 billion, of

which 51% was directed at low- and middle-income economies.

In addition to reporting on mitigation and adaptation finance, some multilateral development

banks report on volumes of climate finance that have dual, simultaneous benefits: reducing

greenhouse gas emissions and promoting adaptation to climate change. In 2022, AIIB, EBRD, IDBG

and IsDB reported a total of $2 759 million for dual-beneﬁt projects. See Annex C.4 for further

climate ﬁnance statistics and examples of such projects. Given the relatively small volumes of

“dual-beneﬁt” climate ﬁnance and in order to simplify data presentation, the tables and graphs

throughout this report present data by mitigation or adaptation finance, as indicated by the

reporting multilateral development banks.

Annex A provides additional information on MDB total climate ﬁnance aggregated across all their

countries of operation.

9 Joint Methodology For Tracking Climate Change Adaptation Finance https://www.eib.org/attachments/lucalli/20220242_mdbs_joint_

methodology_climate_ﬁnance_en.pdf

10 The Common Principles for Climate Change Adaptation Finance Tracking are set out in Annex C.2: https://www.afdb.org/ﬁleadmin/uploads/

afdb/Documents/Generic-Documents/Common_Principles_for_Climate_Change_Adaptation_Finance_Tracking_-_Version_1__02_

July__2015.pdf

11 The Common Principles for Climate Mitigation Finance Tracking are set out in Annex C.3: https://www.eib.org/attachments/documents/

mdb_idfc_mitigation_common_principles_en.pdf

Executive summary |

OVERVIEW OF MDB METHODOLOGIES FOR TRACKING

CLIMATE FINANCE

The tracking of MDB climate finance is based on the harmonised principles and jointly agreed

methodologies for tracking climate change adaptation and mitigation ﬁnance detailed respectively in

Annex C.2 and Annex C.3 of this report. In this publication, the term “MDB climate ﬁnance” refers to

the amounts committed by the multilateral development banks to ﬁnancing climate change mitigation

and adaptation activities in the projects they undertake. See Annex B for details of the 2022 report’s

geographic coverage, and that of past editions.

MDB climate ﬁnance includes commitments from the multilateral development banks´ own accounts,

and from external resources channelled through and managed by the banks. Climate co-finance

includes the amount of ﬁnancial resources contributed by external resources alongside MDB climate

ﬁnance. These may include entities from both the private (commercial) and public (non-commercial)

sectors.

1.1 FINANCE FOR ADAPTATION TO CLIMATE CHANGE

Climate change adaptation aims to reduce the risks or vulnerabilities posed by climate change

and increase climate resilience. Identiﬁcation of climate change adaptation ﬁnance is the result

of a three-step process and thus, for a project to be counted either fully or partially towards MDB

adaptation ﬁnance, it must:

a. Set out the project’s context of vulnerability to climate change.

b. Make an explicit statement of intent to address this vulnerability as part of the project.

c. Articulate a clear and direct link between the vulnerability and the speciﬁc project activities.

The MDB methodology for tracking climate change adaptation finance follows a context- and

location-specific, conservative and granular approach. It tracks MDB financing only for those

components and/or sub-components or elements or proportions of projects that directly contribute

to or promote adaptation. It is important to note the following:

a. The adaptation finance reported might not capture certain activities that may contribute

significantly to resilience but cannot always be tracked in quantitative terms (for example,

operational procedures that support adaptation to climate change) or might not be associated

with costs (such as siting assets outside ﬂood-prone areas).

b. Climate adaptation ﬁnance, as deﬁned by the methodology, is not intended to capture the value

of an entire project or investment that may increase resilience as a result of speciﬁc adaptation

activities that take place as part of the project.

c. The adaptation ﬁnance reported captures ﬁnancial support for actions aimed at, among others,

averting, minimising, and addressing the risk associated with the adverse effects of climate

change, including extreme weather events and slow onset events. It includes support for

anticipatory actions needed to increase preparedness, reduce climate vulnerability, and adapt to

the experienced and anticipated impacts of climate change, as well as ﬁnancing of post-disaster

recovery and reconstruction needed in the aftermath of climate shocks.

d. This report is based on the MDBs’ methodology for tracking adaptation ﬁnance as described in

Annex C.2. In November 2022, the MDBs released the updated Joint Methodology for Tracking

Adaptation Finance

. The updated methodology reﬂects the evolving understanding of change

adaptation and resilience activities, and the advances made in the ﬁelds of adaptation ﬁnance.

The MDBs started to apply the updated adaptation ﬁnance tracking methodology to their 2023

commitments, which will be reported in the joint MDBs climate ﬁnance report to be published in

2024.

12 https://www.eib.org/en/publications/20220242-mdbs-joint-methodology-for-tracking-climate-change-adaptation-ﬁnance

Overview of MDB methodologies for tracking climate ﬁnance |

1.2 FINANCE FOR THE MITIGATION OF CLIMATE CHANGE

Climate change mitigation reduces, avoids, limits or sequesters greenhouse gas emissions to

mitigate climate change. However, not all activities that reduce greenhouse gas emissions are

eligible to be counted towards MDB mitigation finance, which is calculated based on a list of

activities that are compatible with low-emission pathways.

Within the MDB/IDFC “Common Principles for Climate Mitigation Finance Tracking”

methodology,

an activity can be classified as climate change mitigation where the activity, by avoiding or

reducing greenhouse gas emissions or increasing their sequestration, contributes substantially

to the stabilisation of GHG concentrations in the atmosphere at a level that prevents dangerous

anthropogenic interference with the climate system consistent with the long-term temperature

goal of the Paris Agreement.

The common principles recognise that a substantial contribution to climate change mitigation can

involve the following three categories of climate change mitigation activities:

1. Negative or very low-emission activities, which result in negative, zero or very low greenhouse gas

emissions and are fully consistent with the long-term temperature goal of the Paris Agreement, for

example carbon sequestration in land use or some forms of renewable energy.

2. Transitional activities, which are still part of greenhouse gas emissions-emissive systems, but are

important for and contribute to the transition towards a climate-neutral economy, such as energy

efﬁciency improvement in manufacturing that directly or indirectly uses fossil fuels.

3. Enabling activities, which are instrumental in enabling other activities to make a substantial

contribution to climate change mitigation such as manufacture of very low-emission technologies.

Annex C.3 contains an excerpt of the mitigation methodology (with the full description being

available within the MDB/IDFC "Common Principles for Climate Change Mitigation Tracking”).

There are fundamental differences between the tracking methodologies for climate change

adaptation activities and those for mitigation activities. For mitigation activities, a one-tonne

reduction in carbon dioxide (CO

) emissions has the same impact regardless of where the activities

take place. It is therefore possible to deﬁne lists of typical activities that are deemed to support

the path to low-carbon development. However, adaptation activities are project- and location-

speciﬁc, and they respond to speciﬁc climate vulnerabilities. Therefore, unlike mitigation activities,

it is not possible to produce a standalone “list of adaptation activities” that can be used under all

circumstances.

When comparing climate finance data, it is important to understand the differences and

similarities. Table 1a summarises the key points in this regard. Annexes C.2 and C.3 contain

examples of the adaptation and mitigation methodologies’ application in various sectors and

project types. Box 1 provides information on an update to the methodology for tracking adaptation

ﬁnance, agreed by all MDBs and launched at COP27. This updated version of the methodology has

not been used for the preparation of this 2022 report, but will be used for 2023 reporting.

13 mdb_idfc_mitigation_common_principles_en.pdf (eib.org)

2 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Table 1a. Comparison of methodologies for tracking adaptation and mitigation ﬁnance

CLIMATE CHANGE ACTIVITY

Item Adaptation Mitigation

General scope of

qualifying activity

The activity is typically a component or element

of a project, and in certain circumstances

an entire project, contributing to resilience

(including socioeconomic resilience) or

adaptation to climate change.

This is typically a project (or component thereof)

that avoids, reduces or sequesters greenhouse

gas emissions, or promotes efforts to achieve

these goals.

Basis for tracking Adaptation finance tracking is incremental

(component-based); it only takes into account

those activities that specifically address

vulnerability to climate change. Eligible

components are usually parts of a larger

project, for example, water-saving equipment

that is part of a larger capital expenditure

investment in an area vulnerable to increased

risk of drought.

Mitigation ﬁnance tracking is either project- or

component-based.

Project-based: If the whole project is considered

to be a mitigation activity, for example, a typical

renewable energy project or a project dedicated

to improving the energy efﬁciency of an existing

facility, then 100% of the project investment

is considered to be mitigation finance, where

applicable criteria are met.

Component-based: Within a project, if only

a component of that project is a mitigation

activity, such as installation of energy-efﬁcient

equipment that is part of a larger capital

expenditure investment, then the respective

fraction of the project is considered to be

mitigation ﬁnance.

Granular approach

to ﬁnance tracking

The adaptation finance methodology is

intended to capture only the value of those

activities within the project that are aimed at

addressing speciﬁc climate vulnerabilities. It is

not intended to capture the value of the entire

project that is made more climate-resilient as a

result of speciﬁc adaptation activities within the

project.

A granular approach is used. Climate finance

methodology is intended to capture only the

value of the project or its components that

substantially contribute to climate change

mitigation, demonstrated using applicable

metrics (such as emission or energy intensity)

subject to the requirements specified in the

eligible list of activities.

Scale of impact Local, regional, national or global Global

Indicator(s) to

quantify and

compare project

outcomes

Multiple (project- and context-speciﬁc) indicators

are needed; the intended outcomes depend on

the nature of the project.

Ultimately, the impact of all mitigation projects

can be assessed on the basis of their direct

greenhouse gas emissions reductions (such as

implementation of energy-efﬁcient equipment

in a building) or indirect greenhouse gas

emission reductions (such as the manufacture

of electric vehicles helping to reduce emissions

through substitution of internal combustion

engine vehicles in the market).

Qualiﬁcation for

climate ﬁnance

Qualiﬁcation is based on a three-step assessment

process, taking into account the climate change

vulnerability context and the specific project

intent to reduce climate vulnerabilities.

Qualification is based on a list of eligible

activities with associated screening criteria

that serve to assess qualification for climate

mitigation finance. Overarching criteria also

apply. See Annex C.3 for further details.

Climate ﬁnance

tracking

Following the three-step assessment process,

a share of those project components that

are clearly and directly linked to the climate

vulnerability context and contribute to climate

change resilience is classiﬁed as climate

change adaptation ﬁnance.

Financing of the eligible project activities is

classiﬁed as climate change mitigation ﬁnance

where associated criteria are met.

Overview of MDB methodologies for tracking climate ﬁnance |

Box 1. Updated joint MDB methodology for tracking adaptation ﬁnance

Between 2021 and 2022, the MDBs carried out a review of the joint MDB methodology for tracking adaptation

ﬁnance. The review built on collective experiences of applying the methodology over the preceding decade. It aimed

to better characterise adaptation activities for the purpose of tracking adaptation ﬁnance and provide guidance on the

application of the joint methodology in a broader range of ﬁnancing instruments.

The outcome was an update to the methodology

that reﬂected the evolving understanding of adaptation and climate

resilience and advances made in the ﬁelds of adaptation ﬁnance. These developments include the following:

a. Adaptation is no longer viewed purely as an add-on to development investments, but rather as an imperative for

putting development on the path to resilience. As a result, adaptation support has expanded from traditional

infrastructure sectors to a wider range of sectors, such as education, health, social protection, ﬁnancial services,

and research and innovation for adaptation solutions.

b. Financing modalities supporting adaptation have broadened from typical investment loans and programmes to

other ﬁnancial instruments, including policy-based loans, working capital and credit lines.

c. Relevant advances concerning green and sustainable finance have emerged in recent years, notably the

EU taxonomy for sustainable finance and impact reporting for green bonds, introducing new concepts and

approaches for better deﬁning, reporting and monitoring adaptation activities, including private investment in

adaptation.

1.3 METHODOLOGY FOR CLIMATE CO-FINANCE

Since 2015 the multilateral development banks have been reporting on climate co-ﬁnance (CCF)

ﬂows in line with the harmonised deﬁnitions and indicators that had been established to estimate

them. Tracking of climate co-ﬁnance aims to estimate the volume of ﬁnancial resources invested by

public and private external parties alongside multilateral development banks ﬁnancing for climate

mitigation and adaptation activities.

This approach presents sources of climate co-finance in the following categories: (i) other

multilateral development banks; (ii) IDFC member institutions, including bilateral and multilateral

members; (iii) other international public entities such as donor governments; (iv) contributions from

other domestic public entities such as recipient country governments (for example, ﬁnancing by

local counterparts); and (v) all private entities (deﬁned as those with at least 50% of their shares

held privately), split into private direct mobilisation and private indirect mobilisation. This level of

granularity enables multilateral development banks to present an increasingly nuanced picture of

co-ﬁnance ﬂows used for climate change interventions.

In April 2017 the multilateral development banks published a reference guide (From Billions to

Trillions: Transforming Development Finance)

to explain how they calculate and jointly report private

investment mobilisation beyond climate ﬁnance. The purpose of the methodology is to recognise and

measure the private capital mobilised in MDB project activities. The guide outlines the banks´ joint

commitment to mobilising increased investment from the private sector and institutional investors.

Total financing of climate activity includes climate co-finance, that is, the amount of financial

resources that external entities contribute. The multilateral development banks are implementing

the deﬁnitions and recommendations of the MDB Taskforce on Private Investment Mobilisation for

tracking the private share of climate co-ﬁnance. This methodology focuses on assessing the private

ﬁnance mobilised by an MDB, on a project-by-project basis, such as private direct mobilisation and

private indirect mobilisation

. The 2022 Joint Report on MDBs’ Climate Finance follows the agreed

terminology

and Chapters 2.4, 3.4 and Annex A.4 show two different elements of private ﬁnance

mobilisation: “private direct mobilisation” and “private indirect mobilisation”. Put together, these two

forms of mobilisation represent the private share of climate co-ﬁnance.

14 Joint methodology for tracking climate change adaptation ﬁnance (eib.org)

15 http://documents.worldbank.org/curated/en/495061492543870701/pdf/114403-WP-PUBLIC-cedvp-14p-JointMDBReportingonPriva

teInvestmentMobilizationMethodologyReferenceGuide.pdf

16 http://documents.worldbank.org/curated/en/495061492543870701/pdf/114403-WP-PUBLIC-cedvp-14p-JointMDBReportingonPriva

teInvestmentMobilizationMethodologyReferenceGuide.pdf

17 See Annex C.1 for deﬁnitions of “private direct mobilisation”, “private indirect mobilisation” and “public direct mobilisation”.

4 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Private indirect

mobilisation

Private direct

mobilisation

Public co-ﬁnanceExternal

resources

managed

by MDB

MDB own account

Total private mobilisation

MDB climate ﬁnance

Figure 2. Total activity ﬁnancing, by type of ﬁnance

Overview of MDB methodologies for tracking climate ﬁnance |

6 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

2.1 MDB CLIMATE FINANCE IN LOW- AND MIDDLE-INCOME ECONOMIES

In 2022, multilateral development banks committed $60.7 billion to low-income and middle-

income economies, thus surpassing the annual expectation of $50 billion set in the joint MDB High

Level Statement of 2019. Of the $60.9 billion of climate ﬁnance committed to low-income and

middle-income economies, $57.9 billion was from the MDBs’ own account and $3.0 billion was in

external resources channelled through MDBs. Mitigation ﬁnance committed to low- and middle-

income economies totalled $38.2 billion, or 63%, while adaptation ﬁnance totalled $22.7 billion,

or 37%.

Sources of MDB climate finance are split between the multilateral development banks’ own

accounts and the external resources channelled through and managed by them. External

resources include trust-funded operations, such as those funded by bilateral agencies and

dedicated climate ﬁnance funds such as the Climate Investment Funds (CIF), the Green Climate

Fund (GCF) and climate-related funds under the Global Environment Facility (GEF), EU blending

facilities and others. As bilateral reporting may already cover some external resources, those

managed by the MDBs are presented separately from the multilateral development banks’ own

accounts.

Table 2. MDB climate ﬁnance in low- and middle-income economies, 2022 (in $ million)

AfDB ADB AIIB CEB EBRD EIB IDBG IsDB NDB WBG Total

Own account 3 151 6 721 2 311 295 3 949 4 097 5 556 1 050 466 30 334 57 931

MDB-managed

external

resources

500 385 - - 340 67 373 - - 1 333 2 985*

MDB climate

ﬁnance

3 651 7 107 2 311 295 4 289 4 165 5 930 1 050 466 31 666

60 916*

Notes:

1. “MDB climate ﬁnance” refers to the sum of climate ﬁnance from the MDBs’ own accounts and MDB-managed external resources.

2. For IsDB, the reported commitment excludes operations of IsDB Group members including the Islamic Corporation for the Development

of the Private Sector (ICD), the International Islamic Trade Finance Corporation (ITFC) and the Islamic Corporation for the Insurance of

Investment and Export Credit (ICIEC).

3. (*) See footnote 1 for Figures 1a and 1b.

Table 3. MDB climate ﬁnance by scope in low- and middle-income economies, 2022 (in $ million)

MDB Adaptation ﬁnance Mitigation ﬁnance MDB climate ﬁnance

AfDB 2 276 1 375 3 651

ADB 2 829 4 277 7 107

AIIB 423 1 889 2 311

CEB 211 84 295

EBRD 300 3 989 4 289

EIB 431 3 734 4 165

IDBG 2 045 3 885 5,930

IsDB 571 479 1 050

NDB 0 466 466

WBG 13 640 18 027 31 666

Total 22 718* 38 198* 60 916*

Notes:

1. In certain cases, MDBs ﬁnance activities that have simultaneous beneﬁts for mitigation and adaptation. The 2022 ﬁgure of

$2 354 million of climate ﬁnance with dual beneﬁts in low- and middle-income economies is presented under the subheading of

mitigation or adaptation ﬁnance (based on the most relevant elements of the project) to simplify reporting (See Annex C.4). The AIIB

reported $127 million, the EBRD reported $106 million, the IDBG reported $1 792 million, and the IsDB reported $329 million as dual-

beneﬁt projects. Note that the IDBG and the IsDB split dual-beneﬁt ﬁnance equally between adaptation and mitigation categories, while

the AIIB and the EBRD allocate all dual-beneﬁt activities to adaptation ﬁnance. See Annex C.4 for further details.

2. (*) See footnote 1 for Figures 1a and 1b.

MDB CLIMATE FINANCE IN LOW- AND

MIDDLE-INCOME ECONOMIES, 2022

MDB climate ﬁnance in low- and middle-income economies, 2022 |

2.1.1 MDB CLIMATE FINANCE BY TYPE OF RECIPIENT OR BORROWER IN LOW- AND

MIDDLE-INCOME ECONOMIES

The multilateral development banks report on the nature of ﬁrst recipients or borrowers of their

climate ﬁnance (those to which ﬁnance will ﬂow directly from the MDBs), differentiating between

public and private recipients or borrowers. Total commitment varies significantly between the

MDBs’ own accounts and MDB-managed external resources, as Table 4 illustrates. Table 5 shows

the split by type of recipient or borrower for the banks’ own accounts and for MDB-managed

external resources.

Table 4. MDB climate ﬁnance by source of funds and by type of recipient or borrower in low- and middle-income

economies, 2022 (in $ million)

Type of recipient or borrower MDB own account MDB-managed external resources

Public recipient/borrower 46 146 2 491*

Private recipient/borrower 11 785 495

Total 57 931 2 985*

(*) See footnote 1 for Figures 1a and 1b.

Table 5. MDB climate finance by type of recipient or borrower in low- and middle-income economies, 2022

(in $ million)

MDB

Private Public

AfDB 777 2 874

ADB 547 6 560

AIIB 648 1 664

CEB - 295

EBRD 2 707 1 581

EIB 1 440 2 724

IDBG 1 266 4 664

IsDB - 1 050

NDB - 466

WBG 4 894 26 773

Total 12 279 48 637*

(*) See footnote 1 for Figures 1a and 1b.

8 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

2.1.2 MDB CLIMATE FINANCE BY TYPE OF INSTRUMENT IN LOW- AND MIDDLE-

INCOME ECONOMIES

For the eighth consecutive year, the multilateral development banks reported climate finance

by the types of financial instrument (see Annex C.5 for definitions). They reported that 61% of

climate ﬁnance for low- and middle-income economies was committed through investment loans,

followed by policy-based ﬁnancing (14%) and grants (10%). Illustrative examples of various type of

instrument are presented in tables in Annex C.5.

Table 6. MDB climate ﬁnance by type of instrument in low- and middle-income economies, 2022 (in $ million)

Instrument type Climate ﬁnance

Equity 1 008

Grant 6 078*

Guarantee 1 766

Investment loan 37 102

Line of credit 2 839

Policy-based ﬁnancing 8 427

Results-based ﬁnancing 2 105

Other instruments 1 591

Total 60 916*

Notes:

1. Annex C.5 deﬁnes the various type of instrument.

2. Other instruments include advisory services and bonds. Some MDBs report eligible bonds under the category of investment loans.

3. (*) See footnote 1 for Figures 1a and 1b.

Equity $1 008 million

Grant $6 078* million

Guarantee $1 766 million

Investment loan $37 102 million

Line of credit $2 839 million

Policy-based ﬁnancing $8 427 million

Results-based ﬁnancing $2 105 million

Other instruments $1 591 million

TOTAL CLIMATE FINANCE BY INSTRUMENT

$60 916* million

Figure 3. MDB climate ﬁnance by type of instrument in low- and middle-income economies, 2022 (in $ million)

61%

10%

14%

TOTAL

$60 916* million

(*) See footnote 1 for Figures 1a and 1b.

MDB climate ﬁnance in low- and middle-income economies, 2022 |

2.1.3 MDB CLIMATE FINANCE BY REGION IN LOW- AND MIDDLE-INCOME

ECONOMIES

Multilateral development banks’ climate ﬁnance commitments grouped by region

Table 7. MDB climate ﬁnance by region in low- and middle-income economies, 2022 (in $ million)

Region

Climate ﬁnance

Central Asia 2 628

East Asia and the Paciﬁc 9 846*

Europe: European Union 330

Europe: Non-European Union 4 826

Latin America and the Caribbean 12 917

Middle East and North Africa 4 715

South Asia 7 471

Sub-Saharan Africa 16 334

Multi-regional 1 848

Total 60 916*

(*) See footnote 1 for Figures 1a and 1b.

Central Asia $2 628 million

East Asia and the Paciﬁc $9 846* million

Europe: European Union $330 million

Europe: Non-European Union $4 826 million

Latin America and the Caribbean $12 917 million

Middle East and North Africa $4 715 million

South Asia $7 471 million

Sub-Saharan Africa $16 334 million

Multi-regional $1 848 million

TOTAL CLIMATE FINANCE BY REGION

$60 916* million

Figure 4. MDB climate ﬁnance by region in low- and middle-income economies, 2022 (in $ million)

12%

21%

16%

27%

TOTAL

$60 916* million

(*) See footnote 1 for Figures 1a and 1b.

2.2 MDB ADAPTATION FINANCE IN LOW- AND MIDDLE-INCOME ECONOMIES, 2022

In 2022 a total of $25.2 billion was committed for climate change adaptation finance, with

$22.7 billion, or 90%, committed to low- and middle-income economies, thus surpassing their

expected collective delivery of increasing adaptation ﬁnance to $18 billion, set in the joint MDB

High Level Statement of 2019. The data reported correspond to the incremental costs of project

components, sub-components, or elements, or proportions of projects, which are considered to

be inputs to an adaptation process and are intended to reduce vulnerability to climate change and

build resilience to it.

18 See Tables B.1 and B.2 for regional groupings.

10 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Table 8 presents the 2022 adaptation ﬁgures by bank for low- and middle-income economies,

with a breakdown of climate adaptation ﬁnance committed by the multilateral development banks

from their own accounts and from MDB-managed external resources in low- and middle-income

economies.

Table 8. MDB adaptation ﬁnance by MDB according to source of funds in low- and middle-income economies,

2022 (in $ million)

AfDB ADB AIIB CEB EBRD EIB IDBG IsDB NDB WBG Total

MDB own

account

1 993 2 726 423 211 252 424 1 997 571 - 12 878 21 473

MDB-managed

external

resources

282 103 - - 48 7 48 - - 762 1 245*

Total 2 276 2 829 423 211 300 443 2,045 571 - 13,640 22 718*

(*) See footnote 1 for Figures 1a and 1b.

Table 9 shows a breakdown by type of recipient or borrower.

Table 9. MDB adaptation ﬁnance by MDB and by type of recipient or borrower in low- and middle-income economies,

2022 (in $ million)

MDB Private Public

AfDB 261 2 015

ADB 89 2 74 0

AIIB 5 418

CEB - 211

EBRD 145 155

EIB 211 220

IDBG 118 1 927

IsDB - 571

NDB - -

WBG 128 13 512

Total

956 21 762*

(*) See footnote 1 for Figures 1a and 1b.

Table 10 breaks down MDB adaptation ﬁnance by type of instrument. The multilateral development

banks reported that the majority (62%) of adaptation finance for low- and middle-income

economies was committed through investment loans, followed by grants (16%) and policy-based

ﬁnancing (13%).

Table 10. MDB adaptation ﬁnance by MDB and by type of instrument in low- and middle-income economies, 2022

(in $ million)

Instrument type Adaptation ﬁnance

Equity 7

Grant 3 539*

Guarantee 289

Investment loan 14 091

Line of credit 767

Policy-based ﬁnancing 3 032

Results-based ﬁnancing 804

Other instruments 188

Total 22 718*

(*) See footnote 1 for Figures 1a and 1b.

MDB climate ﬁnance in low- and middle-income economies, 2022 |

Equity $7 million

Grant $3 539* million

Guarantee $289 million

Investment loan $14 091 million

Line of credit $767 million

Policy-based ﬁnancing $3 032 million

Results-based ﬁnancing $804 million

Other instruments $188 million

TOTAL CLIMATE FINANCE BY INSTRUMENT

$22 718* million

Figure 5. MDB adaptation ﬁnance by MDB and by type of instrument in low- and middle-income economies,

2022 (in $ million)

62%

15%

13%

TOTAL

$22 718* million

(*) See footnote 1 for Figures 1a and 1b.

Table 11 shows total adaptation ﬁnance by region. The largest proportions of adaptation ﬁnance in

low- and middle-income economies were in the following regions: Sub-Saharan Africa, South Asia,

and Latin America and the Caribbean.

Table 11. MDB adaptation ﬁnance by region in low- and middle-income economies, 2022 (in $ million)

Region Adaptation ﬁnance

Central Asia 812

East Asia and the Paciﬁc 2 718*

Europe: European Union 3

Europe: Non-European Union 1 049

Latin America and the Caribbean 3 635

Middle East and North Africa 1 805

South Asia 3 884

Sub-Saharan Africa 8 659

Multi-regional 154

Total 22 718*

(*) See footnote 1 for Figures 1a and 1b.

Central Asia $812 million

East Asia and the Paciﬁc $2 718* million

Europe: European Union $3 million

Europe: Non-European Union $1 049 million

Latin America and the Caribbean $3 635 million

Middle East and North Africa $1 805 million

South Asia $3 884 million

Sub-Saharan Africa $8 659 million

Multi-regional $154 million

TOTAL ADAPTATION FINANCE BY REGION

$22 718* million

Figure 6. MDB adaptation ﬁnance by region in low- and middle-income economies, 2022 (in $ million)

16%

17%

12%

38%

TOTAL

$22 718* million

(*) See footnote 1 for Figures 1a and 1b.

12 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Table 12 reports MDB adaptation ﬁnance by sector, with 30% in energy, transport and other built

environment and infrastructure, followed by cross-cutting operations with 17%, and 15% in water

and wastewater systems.

Table 12. MDB adaptation ﬁnance by sector in low- and middle-income economies, 2022 (in $ million)

Sector group Adaptation ﬁnance

Coastal and riverine infrastructure 306

Crop and food production 2 894

Cross-cutting sectors 3 839

Energy, transport, and other built environment and infrastructure 6 847

Financial services 1 575

Industry, manufacturing and trade 29

Information and communications technology 138

Institutional capacity support or technical assistance 2 205

Other agricultural and ecological resources 1 540*

Water and wastewater systems 3 344

Total 22 718*

(*) See footnote 1 for Figures 1a and 1b.

Coastal and riverine infrastructure $306 million

Crop and food production $2 894 million

Cross-cutting sectors $3 839 million

Energy, transport,and other built environment

and infrastructure $6 847 million

Financial services $1 575 million

Industry, manufacturing and trade $29 million

Information and communications

technology $138 million

Institutional capacity support or

technical assistance $2 205 million

Other agricultural and ecological resources

$1 540* million

Water and wastewater systems $3 344 million

TOTAL ADAPTATION FINANCE BY SECTOR

$ 22 718* million

Figure 7. MDB adaptation ﬁnance by sector in low- and middle-income economies, 2022 (in $ million)

16%

30%

15%

13%

10%

TOTAL

$ 22 718* million

(*) See footnote 1 for Figures 1a and 1b.

MDB climate ﬁnance in low- and middle-income economies, 2022 |

Adaptation ﬁnance by region, for low- and middle-income economies, with a further breakdown by

sector, is presented in Table 13.

Table 13. MDB adaptation ﬁnance by sector and region in low- and middle-income economies, 2022 (in $ million)

Central

Asia

East Asia

and the

Paciﬁc

Europe:

European

Union

Europe:

Non-

European

Union

Latin

America

and the

Caribbean

Middle

East and

North

Africa

South

Asia

Sub-

Saharan

Africa

Multi-

regional

Total

Coastal

and riverine

infrastructure

1 54 - - 102 16 54 74 5 306

Crop and food

production

119 46 - 89 99 622 288 1 534 97 2 894

Cross-cutting

sectors

78 1 058 - 67 589 211 748 1 077 12 3 839

Energy,

transport, and

other built

environment and

infrastructure

156 751 3 517 695 134 2 301 2 264 27 6 847

Financial

services

3 131 - 0 283 252 89 815 3 1 575

Industry,

manufacturing

and trade

0 - - 12 9 - 7 - - 29

Information and

communications

technology

3 9 - 38 3 - 26 59 0 138

Institutional

capacity support

or technical

assistance

11 52 - 225 954 89 128 743 3 2 217

Other

agricultural

and ecological

resources

209 388* - 23 228 42 32 616 3 1 540*

Water and

wastewater

systems

232 230 - 77 672 439 212 1 478 4 3 344

Total 812 2 718* 3 1 049 3 635 1 805 3 884 8 659 154 22 718*

(*) See footnote 1 for Figures 1a and 1b.

2.3 MDB MITIGATION FINANCE IN LOW- AND MIDDLE-INCOME ECONOMIES, 2022

In 2022, the multilateral development banks reported a total of $74.5 billion in financial

commitments for the mitigation of climate change, with $38.2 billion, or 51%, committed to low-

income and middle-income economies. Data reported correspond to the ﬁnancing of mitigation

projects or of those components, sub-components, elements, or proportions of projects that

provide mitigation beneﬁts (rather than reporting the entire project cost).

Table 14 provides a breakdown of climate mitigation finance committed by the multilateral

development banks during 2022 from MDB own-account and external resources in low- and

middle-income economies.

14 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Table 14. MDB mitigation ﬁnance by MDB, according to source of funds in low- and middle-income economies,

2022 (in $ million)

AfDB ADB AIIB CEB EBRD EIB IDBG IsDB NDB WBG Total

MDB own

account

1 157 3 995 1 889 84 3 697 3 674 3 560 479 466 17 456 36 458

MDB-managed

external

resources

217 282 - - 292 60 325 - - 570 1 740*

Total 1 375 4 277 1 889 84 3 989 3 734 3 885 479 466 18 027 38 198*

(*) See footnote 1 for Figures 1a and 1b.

Table 15 shows a breakdown by type of recipient or borrower.

Table 15. MDB mitigation finance by MDB and by type of recipient or borrower in low- and middle-income

economies, 2022 (in $ million)

MDB Private Public

AfDB 516 859

ADB 458 3 819

AIIB 643 1 246

CEB - 84

EBRD 2 563 1 426

EIB 1 229 2 505

IDBG 1 148 2 737

IsDB - 479

NDB - 466

WBG 4 766 13 261

Total

11 323 26 875*

(*) See footnote 1 for Figures 1a and 1b.

Table 16 breaks down MDB mitigation ﬁnance by type of instrument. The multilateral development

banks reported that 60% of total mitigation ﬁnance for low- and middle-income economies was

committed through investment loans, followed by policy-based ﬁnancing, with a share of 14%.

Table 16. MDB mitigation ﬁnance by type of instrument in low- and middle-income economies, 2022 (in $ million)

Instrument type Mitigation ﬁnance

Equity 1 001

Grant 2 539*

Guarantee 1 477

Investment loan 23 011

Line of credit 2 072

Policy-based ﬁnancing 5 395

Results-based ﬁnancing 1 301

Other instruments 1 399

Total

38 198*

(*) See footnote 1 for Figures 1a and 1b.

MDB climate ﬁnance in low- and middle-income economies, 2022 |

Equity $1 001 million

Grant $2 539* million

Guarantee $1 477 million

Investment loan $23 011 million

Line of credit $2 072 million

Policy-based ﬁnancing $5 395 million

Results-based ﬁnancing $1 301 million

Other instruments $1 399 million

TOTAL MITIGATION FINANCE BY TYPE OF INSTRUMENT

$38 198* million

Figure 8. MDB mitigation ﬁnance by type of instrument in low- and middle-income economies, 2022 (in $ million)

60%

14%

TOTAL

$38 198* million

(*) See footnote 1 for Figures 1a and 1b.

Table 17 shows total mitigation ﬁnance by region. The largest proportions of mitigation ﬁnance in

low- and middle- income economies were in the following regions: Latin America and the Caribbean

(24%), Sub-Saharan Africa (20%), and East Asia and the Paciﬁc (19%).

Table 17. MDB mitigation ﬁnance by region in low- and middle-income economies, 2022 (in $ million)

Region Mitigation ﬁnance

Central Asia 1 816

East Asia and the Paciﬁc 7 128*

Europe: European Union 327

Europe: Non-European Union 3 777

Latin America and the Caribbean 9 282

Middle East and North Africa 2 910

South Asia 3 587

Sub-Saharan Africa 7 675

Multi-regional 1 689

Total

38 198*

Notes:(*) See footnote 1 for Figures 1a and 1b.

Central Asia $1 816 million

East Asia and the Paciﬁc $7 128* million

Europe: European Union $327 million

Europe: Non-European Union $3 777 million

Latin America and the Caribbean $9 282 million

Middle East and North Africa $2 910 million

South Asia $3 587 million

Sub-Saharan Africa $7 675 million

Multi-regional $1 689 million

TOTAL MITIGATION FINANCE BY REGION

$38 198* million

Figure 9. MDB mitigation ﬁnance by region in low- and middle-income economies, 2022 (in $ million)

10%

24%

19%

20%

TOTAL

$38 198* million

(*) See footnote 1 for Figures 1a and 1b.

16 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Table 18 reports the multilateral development banks’ mitigation ﬁnance in low- and middle-income

economies by sector with 31% in energy, followed by 23% in transport.

Table 18. MDB mitigation ﬁnance by sector in low- and middle-income economies, 2022 (in $ million)

Region Mitigation ﬁnance

Energy 11 904

Mining and metal production for climate action -

Manufacturing 1 948

Agriculture, forestry, land use and ﬁsheries 2 296*

Water supply and wastewater 1 418

Solid waste management 572

Transpor t 8 650

Buildings, public installations and end-use energy efﬁciency 3 009

Information and communications technology (ICT) and digital technologies 239

Research, development and innovation 121

Cross-sectoral activities 8 041

Total 38 198*

(*) See footnote 1 for Figures 1a and 1b.

Energy $11 904 million

Mining and metal production for

climate action $- million

Manufacturing $1 948 million

Agriculture, forestry, land use

and ﬁsheries $2 296* million

Water supply and wastewater $1 418 million

Solid waste management $572 million

Transport $8 650 million

Buildings, public installations and

end-use energy efﬁciency $3 009 million

Information and communications technology

(ICT) and digital technologies $239 million

Research, development and innovation $121 million

Cross-sectoral activities $8 041 million

TOTAL MITIGATION FINANCE BY SECTOR

$38 198* million

Figure 10. MDB mitigation ﬁnance by sector in low- and middle-income economies, 2022 (in $ million)

31%

21%

23%

TOTAL

$38 198* million

(*) See footnote 1 for Figures 1a and 1b.

Mitigation ﬁnance by region, with further breakdown by sectors, is presented in Table 19.

Table 19. MDB mitigation ﬁnance by sector and by region in low- and middle-income economies, 2022 (in $ million)

Central

Asia

East Asia

and the

Paciﬁc

Europe:

European

Union

Europe:

Non-

European

Union

Latin

America

and the

Caribbean

Middle

East and

North

Africa

South

Asia

Sub-

Saharan

Africa

Multi-

regional

Total

Energy 888 1 407 8 1 178 2 302 74 9 1 271 3 243 8 57 11 904

Mining

and metal

production for

climate action

- - - - - - - - - -

Manufacturing 74 253 - 617 434 244 15 154 149 1 948

Agriculture,

forestry,

land use and

ﬁsheries

228 673* - 60 441 90 66 681 58 2 296*

MDB climate ﬁnance in low- and middle-income economies, 2022 |

Central

Asia

East Asia

and the

Paciﬁc

Europe:

European

Union

Europe:

Non-

European

Union

Latin

America

and the

Caribbean

Middle

East and

North

Africa

South

Asia

Sub-

Saharan

Africa

Multi-

regional

Total

Water supply

and waste-

water

33 261 - 32 514 115 175 287 0 1 417

Solid waste

management

78 272 - 29 119 24 1 24 24 572

Transpor t 145 2 642 295 1 004 1 367 1 027 1 123 1 006 42 8 650

Buildings,

public

installations

and end-

use energy

efﬁciency

163 275 23 262 583 473 332 604 293 3 009

Information

and communi-

cations tech-

nology (ICT)

and digital

technologies

- 39 - 19 40 - 39 66 34 238

Research,

development

and innovation

- 2 2 - 51 1 8 39 18 121

Cross-sectoral

activities

207 1 296 - 574 3 430 188 557 1 571 218 8 041

Total 1 816 7 128* 327 3 777 9 282 2 910 3 587 7 675 1 689 38 198*

(*) See footnote 1 for Figures 1a and 1b.

2.4 CLIMATE CO-FINANCE IN LOW- AND MIDDLE-INCOME ECONOMIES, 2022

The multilateral development banks’ climate co-ﬁnance is based on their harmonised deﬁnitions

which can be consulted in Section 1.3.

Table 21 shows 2022 climate co-finance flows as reported by each institution, segmented by

the source of co-ﬁnancing. These CCF ﬁgures are the best estimate of resource ﬂows based on

information available at the time of board approval and/or commitment to each project. In some

cases, two or more banks jointly ﬁnance a project, which results in some overlap between the

gross co-ﬁnance ﬁgures reported by the different organisations. Table 20 shows climate co-ﬁnance

ﬂows by adaptation and mitigation for low- and middle-income economies. In order to avoid double

counting, the last column of Tables 21 and 22 nets out potentially double-counted co-ﬁnancing by

considering only the proportion of co-ﬁnancing for every project that features co-ﬁnancing from

another MDB.

In the reference guide, the multilateral development banks emphasise the differences in how

various ﬁnancial instruments, including guarantees, are tracked and reported. By mitigating the

political and commercial risks of private and publicly owned investments, guarantees can facilitate

access to capital for climate ﬁnance activities. This can enhance the mobilisation of resources for a

speciﬁc project or in support of speciﬁc government policies.

For consistency with the agreed MDB methodology on tracking and reporting mobilised private

capital, the tracking and reporting of guarantees as detailed in this report assumes: (i) a distinction

18 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

in tracking and reporting between “commercial guarantees” and “non-commercial guarantees”

;

and (ii) causality between the guarantee and the underlying investment covered (in other words,

in the absence of the guarantee, the underlying investment would be unlikely to occur). For this

reason, gross exposure from the guarantee issuance and the underlying investment may be

reported separately under the banks’ own account and private co-ﬁnance, while best efforts are

made to minimise double counting.

Table 21 reﬂects the 2022 CCF ﬂows, including the direct and indirect mobilisation attributed to

guarantees. The guarantee exposure of each MDB has been shown as “own account” in Tables 2,

22, 27 and 48.

Table 20. Climate co-ﬁnance ﬂows by MDB and by thematic focus in low- and middle-income economies, 2022

(in $ million)

AfDB ADB AIIB CEB EBRD EIB IDBG IsDB NDB WBG

Total

climate

co-

ﬁnance

Adjustment

for multiple

MDB

ﬁnancing

Mitigation

ﬁnance

1 406 4 075 2 231 181 4 376 5 729 2 447 1 163 2 114

7 550 32 553 27 717

Adaptation

ﬁnance

2 582 4 297 1 648 53 396 1 836 1 793 110 -

8 435 21 993 20 336

Total

3 988 8 372 3 879 234 4 772 7 564 4 240 1 273 2 114

15 986

54 546 48 053

Table 21. Climate co-ﬁnance ﬂows by MDB and by source in low- and middle-income economies, 2022 (in $ million)

AfDB ADB AIIB CEB EBRD EIB IDBG IsDB NDB

WBG

Total

climate

co-

ﬁnance

Adjustment

for multiple

MDB

ﬁnancing

Public direct

mobilisation

2 122 80 - - 35 145 - -

6 639

7 021

Public co-ﬁnance

Other MDBs

1 307 934 1 985 - 1 736 1 260 484 181 -

875

8 762

IDFC

members

421 476 260 - 100 460 304 - -

200

2 221

1 830

Other

international,

public

865 153 17 - 15 400 27 1 091 -

1 077

3 646

3 060

Other

domestic,

public

539 6 175 1 087 234 348 2 039 320 - 1 032

352

12 126

10 235

Total private mobilisation

Private

direct

mobilisation

- 187 - - 257 46 1 321 - -

2 654

4 466

Private

indirect

mobilisation

854 325 450 - 2 316 3 324 1 639 - 1 082

4 189

14 179

10 890

Total

3 988 8 372 3 879 234 4 772 7 564 4 240 1 273 2 114 15 986

52 421

46 265

19 In the context of this report, non-commercial risk guarantees are deﬁned as insurance or guarantee instruments covering investors against

perceived political risks including, but not limited to, the risks of transfer restriction (including inconvertibility), expropriation, war and civil

disturbance, breach of contract, and failure to honour ﬁnancial obligations, and may provide credit enhancement and improve ratings for

capital market transactions. Commercial or credit-risk guarantees refer to instruments covering all other risks not included above.

MDB climate ﬁnance in low- and middle-income economies, 2022 |

20 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

3.1 MDB CLIMATE FINANCE IN HIGH-INCOME ECONOMIES

In 2022, the multilateral development banks committed $38.8 billion to high-income economies.

Mitigation ﬁnance committed to high-income economies totalled $36.3 billion, while adaptation

ﬁnance totalled $2.5 billion.

Table 22 shows MDBs’ climate ﬁnance for high-income economies. Out of the $38.8 billion of

climate finance committed to high-income economies, $38.7 billion was from the multilateral

development banks’ own accounts and $0.1 billion from external resources that were channelled

through them.

Table 22. MDB climate ﬁnance in high-income economies, 2022 (in $ million)

AfDB ADB AIIB CEB EBRD EIB IDBG IsDB NDB WBG Total

Own account - 2 80 618 2 455

32 869

1 290 0 - 1 365

38 679

MDB-managed

external

resources

- 1 - - 14

10 - - 53

123

MDB climate

ﬁnance

- 3 80 618 2 469

32 913

1 300 0 - 1 419

38 802

Notes:

1. Numbers in the tables and ﬁgures in this report may not add up to the totals shown, due to rounding.

2. “MDB climate ﬁnance” refers to the sum of the climate ﬁnance from the MDBs’ own accounts and the MDB-managed external resources.

3. For IsDB, the reported commitment excludes operations of IsDB Group members including the Islamic Corporation for the Development

of the Private Sector (ICD), the International Islamic Trade Finance Corporation (ITFC) and the Islamic Corporation for the Insurance of

Investment and Export Credit (ICIEC).

Table 23 shows the multilateral development banks´ climate ﬁnance in high-income economies for

adaptation and mitigation.

Table 23. MDB climate ﬁnance by scope in high-income economies, 2022 (in $ million)

MDB Adaptation ﬁnance Mitigation ﬁnance MDB climate ﬁnance

AfDB - - -

ADB 1 2 3

AIIB 32 48 80

CEB 11 608 618

EBRD 7 2 462 2 469

EIB 1 562 31 351 32 913

IDBG 715 585 1 300

IsDB 0 0 0

NDB - - -

WBG 188 1 231 1 419

Total 2 515 36 274 38 789

Notes:

1. In certain cases, MDBs ﬁnance activities that have simultaneous beneﬁts for mitigation and adaptation. The 2022 ﬁgure of $405 million

of climate ﬁnance in high-income economies with dual beneﬁts is presented under the subheading of mitigation or adaptation ﬁnance

(based on the most relevant elements of the project) to simplify reporting (See Annex C.4). For high-income economies, the EBRD

reported $7 million, the IDBG reported $398 million, and the IsDB reported $0.1 million as dual-beneﬁt projects. Note that the IDBG

and the IsDB split dual-beneﬁt ﬁnance equally between adaptation and mitigation categories, while the EBRD allocates all dual-beneﬁt

activities to adaptation ﬁnance. See Annex C.4 for further details.

MDB CLIMATE FINANCE IN HIGH-INCOME

ECONOMIES, 2022

MDB climate ﬁnance in high-income economies, 2022 |

3.1.1 MDB CLIMATE FINANCE BY TYPE OF RECIPIENT OR BORROWER IN HIGH-

INCOME ECONOMIES

The multilateral development banks report on the nature of ﬁrst recipients or borrowers

of their

climate ﬁnance (those to which ﬁnance will ﬂow directly from the MDBs), differentiating between

public and private recipients or borrowers. Total commitment varies signiﬁcantly between banks’

own accounts and MDB-managed external resources, as Table 24 illustrates. Table 25 shows the

split by type of recipient or borrower for the banks’ own accounts and for MDB-managed external

resources.

Table 24. MDB climate ﬁnance by source of funds and by type of recipient or borrower in high-income economies,

2022 (in $ million)

Type of recipient or borrower MDB own account MDB-managed external resources

Public recipient/borrower 19 935 71

Private recipient/borrower 18 743 52

Total 38 679 123

Table 25. MDB climate ﬁnance by type of recipient or borrower in high-income economies, 2022 (in $ million)

MDB Private Public

AfDB - -

ADB 1 2

AIIB 80 -

CEB - 618

EBRD 2 363 106

EIB 15 605 17 307

IDBG 69 1 231

IsDB - 0

NDB - -

WBG 678 741

Total 18 796 20 006

20 See Annex C.1 for the deﬁnitions of public and private recipients or borrowers.

22 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

3.1.2 MDB CLIMATE FINANCE BY TYPE OF INSTRUMENT IN HIGH-INCOME

ECONOMIES.

The multilateral development banks reported that 80% of high-income economies’ climate ﬁnance

was committed through investment loans, followed by lines of credit, which represent 11%.

Illustrative examples of various type of instrument are presented in Tables from Annex C.5.

Table 26. MDB climate ﬁnance by type of instrument in high-income economies, 2022 (in $ million)

Instrument type Climate ﬁnance

Equity 597

Grant 6

Guarantee 972

Investment loan 30 986

Line of credit 4 136

Policy-based ﬁnancing 816

Results-based ﬁnancing 232

Other instruments 1 056

Total 38 679

Notes:

1. Annex C.5 deﬁnes the various types of instrument.

2. Other instruments include advisory services and bonds. Some MDBs report eligible bonds under the category of investment loans.

Equity $597 million

Grant $6 million

Guarantee $972 million

Investment loan $30 986 million

Line of credit $4 136 million

Policy-based ﬁnancing $816 million

Results-based ﬁnancing $232 million

Other instruments $1 056 million

TOTAL CLIMATE FINANCE BY TYPE OF INSTRUMENT

$38 679 million

Figure 11. MDB climate ﬁnance by type of instrument in high-income economies, 2022 (in $ million)

80%

11%

0.09%

TOTAL

$38 679 million

MDB climate ﬁnance in high-income economies, 2022 |

3.1.3 MDB CLIMATE FINANCE BY REGION IN HIGH-INCOME ECONOMIES

Table 27 shows total climate ﬁnance by region. The largest proportions of climate ﬁnance were in

the European Union (92%).

Table 27. MDB climate ﬁnance by region in high-income economies 2022 (in $ million)

Region Climate ﬁnance

Central Asia -

East Asia and the Paciﬁc 180

Europe: European Union 35 871

Europe: Non-European Union -

Latin America and the Caribbean 1 727

Middle East and North Africa 237

South Asia -

Sub-Saharan Africa 11

Multi-regional 776

Total 38 802

East Asia and the Paciﬁc $180 million

Europe: European Union $35 871 million

Latin America and the Caribbean $1 727 million

Middle East and North Africa $237 million

Sub-Saharan Africa $11 million

Multi-regional $776 million

TOTAL CLIMATE FINANCE BY REGION

$38 802 million

0.03%

Figure 12. MDB climate ﬁnance by region, in high-income economies 2022 (in $ million)

0.5%

0.6%

92%

TOTAL

$38 802 million

3.2 MDB ADAPTATION FINANCE IN HIGH-INCOME ECONOMIES, 2022

Of the $25.2 billion committed for adaptation ﬁnance, $2.5 billion, or 10%, was committed to high-

income economies.

Table 28 presents the 2022 adaptation ﬁgures for the multilateral development banks in high-

income economies, with a breakdown of climate adaptation ﬁnance committed by the MDBs from

their own accounts and from MDB-managed external resources.

Table 28. MDB adaptation ﬁnance by MDB according to source of funds in high-income economies, 2022 (in $ million)

AfDB ADB AIIB CEB EBRD EIB IDBG IsDB NDB WBG Total

MDB own

account

- 1 32 11 7 1 562 711 0 - 150 2 473

MDB-managed

external

resources

- 1 - - - - 5 - - 37 42

Total 0 1 32 11 7 1 562 715 0 0 188 2 515

Table 29 shows a breakdown by type of recipient or borrower.

24 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Table 29. MDB adaptation ﬁnance by MDB and by type of recipient or borrower in high-income economies, 2022

(in $ million)

MDB Private Public

AfDB - -

ADB 0 1

AIIB 32 -

CEB - 11

EBRD 5 3

EIB 135 1 426

IDBG 17 698

IsDB - 0

NDB - -

WBG 0 188

Total

188 2 327

Table 30 breaks down MDB adaptation finance by the type of instrument. The multilateral

development banks reported that 70% of adaptation finance in high-income economies was

committed through investment loans.

Table 30. MDB adaptation ﬁnance by MDB and by type of instrument in high-income economies, 2022 (in $ million)

Instrument type Adaptation ﬁnance

Equity 12

Grant 3

Guarantee 160

Investment loan 1 763

Line of credit 326

Policy-based ﬁnancing 208

Results-based ﬁnancing -

Other instruments 43

Total 2 515

Equity $12 million

Grant $3 million

Guarantee $160 million

TOTAL ADAPTATION FINANCE BY TYPE OF INSTRUMENT

$2 515 million

Investment loan $1 763 million

Line of credit $326 million

Policy-based ﬁnancing $208 million

Other instruments $43 million

Figure 13. MDB adaptation ﬁnance by type of instrument in high-income economies, 2022 (in $ million)

70%

13%

0.5%

0.1%

TOTAL

$2 515 million

Table 31 shows total adaptation finance in high-income economies by region. The largest

proportions of adaptation ﬁnance were in the European Union (62%) and Latin America and the

Caribbean (35%).

MDB climate ﬁnance in high-income economies, 2022 |

Table 31. MDB adaptation ﬁnance by region in high-income economies, 2022 (in $ million)

Region Adaptation ﬁnance

Central Asia -

East Asia and the Paciﬁc 33

Europe: European Union 1 567

Europe: Non-European Union -

Latin America and the Caribbean 876

Middle East and North Africa 21

South Asia -

Sub-Saharan Africa 11

Multi-regional 8

Total 2 515

East Asia and the Paciﬁc $33 million

Europe: European Union $1 567 million

Latin America and the Caribbean $876 million

Sub-Saharan Africa $11 million

Multi-regional $8 million

TOTAL ADAPTATION FINANCE IN BY REGION

$2 515 million

0.5%

0.3%

Middle East and North Africa $21 million

Figure 14. MDB adaptation ﬁnance by region in high-income economies, 2022 (in $ million)

62%

35%

TOTAL

$2 515 million

Table 32 reports MDB adaptation ﬁnance in high-income economies by sector, with a share of

29% in energy, transport, and other built environment and infrastructure, and 28% in water and

wastewater systems.

Table 32. MDB adaptation ﬁnance by sector in high-income economies, 2022 (in $ million)

Sector group Adaptation ﬁnance

Coastal and riverine infrastructure 42

Crop and food production 103

Cross-cutting sectors 458

Energy, transport, and other built environment and infrastructure 719

Financial services 148

Industry, manufacturing and trade -

Information and communications technology 36

Institutional capacity support or technical assistance 185

Other agricultural and ecological resources 127

Water and wastewater systems 696

Total 2 515

26 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Coastal and riverine infrastructure $42 million

Crop and food production $103 million

Cross-cutting sectors $458 million

Energy, transport,and other built

environment and infrastructure $719 million

Financial services $148 million

Institutional capacity support

or technical assistance $185 million

Other agricultural and ecological resources $127 million

Water and wastewater systems $696 million

TOTAL ADAPTATION FINANCE BY SECTOR

$2 515 million

Information and communications technology $36 million

Figure 15. MDB adaptation ﬁnance by sector in high-income economies, 2022 (in $ million)

18%

28%

TOTAL

$2 515 million

Adaptation ﬁnance by region, for high-income economies, with a further breakdown by sector, is

presented in Table 33.

Table 33. MDB adaptation ﬁnance by sector and by region in high-income economies, 2022 (in $ million)

Central

Asia

East Asia

and the

Paciﬁc

Europe:

European

Union

Europe:

Non-

European

Union

Latin

America

and the

Caribbean

Middle

East and

North

Africa

South

Asia

Sub-

Saharan

Africa

Multi-

regional

Total

Coastal

and riverine

infrastructure

- - 14 - 28 - - - - 42

Crop and food

production

- - 95 - 8 - - - 0 103

Cross-cutting

sectors

- 32 15 - 410 - - - 1 458

Energy,

transport, and

other built

environment

and

infrastructure

- 0 692 - 25 - - - 1 719

Financial

services

- - 48 - 75 21 - - 4 148

Industry,

manufacturing

and trade

- - - - - - - - - -

Information

and com-

munications

technology

- - 0 - 29 - - 7 0 36

Institutional

capacity

support or

technical

assistance

- - 67 - 117 - - - 2 185

Other

agricultural

and ecological

resources

- - 8 - 115 - - 4 0 127

MDB climate ﬁnance in high-income economies, 2022 |

Central

Asia

East Asia

and the

Paciﬁc

Europe:

European

Union

Europe:

Non-

European

Union

Latin

America

and the

Caribbean

Middle

East and

North

Africa

South

Asia

Sub-

Saharan

Africa

Multi-

regional

Total

Water and

wastewater

systems

- - 628 - 69 - - - 0 696

Total 0 33 1 567 0 876 21 0 11 8 2 515

3.3 MDB MITIGATION FINANCE IN HIGH-INCOME ECONOMIES, 2022

In 2022, the multilateral development banks reported a total of $74.2 billion in financial

commitments to the mitigation of climate change, with $36.3 billion, or 49%, committed to high-

income economies.

Table 34 provides a breakdown of climate change mitigation ﬁnance committed by the multilateral

development banks from MDB own-account and external resources in high-income economies.

Table 34. MDB mitigation finance by MDB, according to source of funds in high-income economies, 2022

(in $ million)

AfDB ADB AIIB CEB EBRD

EIB

IDBG IsDB NDB WBG Total

MDB own

account

- 1 48 608 2 447

31 308

580 0 - 1 215 36 206

MDB-managed

external

resources

- 1 - - 14

5 - - 16 80

Total 0 2 48 608 2 462

31 351

585 0 0 1 231 36 287

Table 35 shows a breakdown by type of recipient or borrower.

Table 35. MDB mitigation ﬁnance by MDB and by type of recipient or borrower in high-income economies, 2022

(in $ million)

MDB Private Public

AfDB - -

ADB 1 1

AIIB 48 -

CEB - 608

EBRD 2 359 103

EIB 15 470 15 881

IDBG 52 533

IsDB - 0

NDB - -

WBG 678 553

Total

18 607 17 680

Table 36 breaks down MDB mitigation ﬁnance by type of instrument. The multilateral development

banks reported that 90% of total mitigation ﬁnance was committed through investment loans in

high-income economies.

28 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Table 36. MDB mitigation ﬁnance by MDB and by type of instrument in high-income economies, 2022 (in $ million)

Instrument type Mitigation ﬁnance

Equity 585

Grant 3

Guarantee 812

Investment loan 29 223

Line of credit 3 810

Policy-based ﬁnancing 608

Results-based ﬁnancing 232

Other instruments 1 013

Total 36 287

TOTAL MITIGATION FINANCE BY TYPE OF INSTRUMENT

$36 287 million

Equity $585 million

Grant $3 million

Guarantee $812 million

Investment loan $29 223 million

Line of credit $3 810 million

Policy-based ﬁnancing $608 million

Results-based ﬁnancing $232 million

Other instruments $1 013 million

0.01%

0.6%

Figure 16. MDB mitigation ﬁnance by MDB and by type of instrument in high-income economies, 2022 (in $ million)

80%

10%

TOTAL

$36 287 million

Table 37 shows total mitigation ﬁnance by region. The largest proportions of mitigation ﬁnance for

high-income economies were for the European Union.

Table 37. MDB mitigation ﬁnance by MDB and by region in high-income economies, 2022 (in $ million)

Region Mitigation ﬁnance

Central Asia -

East Asia and the Paciﬁc 148

Europe: European Union 34 303

Europe: Non-European Union -

Latin America and the Caribbean 851

Middle East and North Africa 216

South Asia -

Sub-Saharan Africa -

Multi-regional 768

Total 36 287

MDB climate ﬁnance in high-income economies, 2022 |

East Asia and the Paciﬁc $148 million

Europe: European Union $34 303 million

Latin America and the Caribbean $851 million

Middle East and North Africa $216 million

Multi-regional $768 million

TOTAL MITIGATION FINANCE BY REGION

$36 287 million

2% 0.6% 2%

Figure 17. MDB mitigation ﬁnance by region in high-income economies, 2022 (in $ million)

0.4%

95%

TOTAL

$36 287 million

Table 38 reports MDBs’ mitigation ﬁnance by sector in high-income economies, with 25.4% in the

sector of transport, followed by Buildings, public installations and end-use energy efﬁciency, with

23,1%, and Energy, with 22.3%.

Table 38. MDB mitigation ﬁnance by sector in high-income economies, 2022 (in $ million)

Region Mitigation ﬁnance

Energy 8 115

Mining and metal production for climate action -

Manufacturing 425

Agriculture, forestry, land use and ﬁsheries 48

Water supply and wastewater 485

Solid waste management 236

Transpor t 9 200

Buildings, public installations and end-use energy efﬁciency 8 388

Information and communications technology (ICT) and digital technologies 77

Research, Development and Innovation 2 936

Cross-sectoral activities 6 376

Total 36 287

30 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Energy $8 115 million

Manufacturing $425 million

Agriculture, forestry, land use and ﬁsheries $48 million

Water supply and wastewater $485 million

Solid waste management $236 million

Transport $9 200 million

Buildings, public installations and

end-use energy efﬁciency $8 388 million

Information and communications technology (ICT)

and digital technologies $77 million

Research, Development and Innovation $2 936 million

Cross-sectoral activities $6 376 million

TOTAL MITIGATION FINANCE BY SECTOR

$36 287 million

Figure 18. MDB mitigation ﬁnance by sector in high-income economies, 2022 (in $ million)

0.13%

0.6%

22%

25%23%

0.2%

17%

TOTAL

$36 287 million

Mitigation ﬁnance by region, for high-income economies, and with further breakdown by sectors, is

presented in Table 39.

Table 39. MDB mitigation ﬁnance by sector and by region in high-income economies, 2022 (in $ million)

Central

Asia

East Asia

and the

Paciﬁc

Europe:

European

Union

Europe:

Non-

European

Union

Latin

America

and the

Caribbean

Middle

East and

North

Africa

South

Asia

Sub-

Saharan

Africa

Multi-

regional

Total

Energy - 112 7 383 - 293 105 - - 223 8 104

Mining

and metal

production for

climate action

- - - - - - - - - -

Manufacturing - - 269 - - - - - 156 425

Agriculture,

forestry,

land use and

ﬁsheries

- - 42 - 5 - - - 2 48

Water

supply and

wastewater

- - 485 - 0 - - - 0 485

Solid waste

management

- - 223 - 0 - - - 12 236

Transpor t - 0 9 059 - 1 21 - - 118 9 200

Buildings,

public

installations

and end-

use energy

efﬁciency

- 0 7 918 - 240 37 - - 193 8 388

MDB climate ﬁnance in high-income economies, 2022 |

Information

and communi-

cations tech-

nology (ICT)

and digital

technologies

- - 59 - 10 - - - 8 77

Research,

development

and innovation

- 0 2 932 - 2 - - - 1 2 936

Cross-sectoral

activities

- 35 5 933 - 299 53 - - 55 6 376

Total - 148 34 303 - 851 216 - - 768 36 287

3.4 CLIMATE CO-FINANCE IN HIGH-INCOME ECONOMIES, 2022

The multilateral development banks' climate co-finance is based on the MDBs’ harmonised

deﬁnitions which can be consulted in Section 1.3.

Table 40 shows climate co-ﬁnance ﬂows by adaptation and mitigation for high-income countries.

In order to avoid double counting, the last column of Tables 40 and 41 nets out potentially double-

counted co-financing by considering only the proportion of co-financing for every project that

features co-ﬁnancing from another multilateral development bank. These ﬁgures are also listed in

Table 64, in Annex A.1, alongside each bank’s own climate ﬁnance ﬂows.

Table 40. Climate co-ﬁnance ﬂows by MDB and by thematic focus in high-income economies, 2022 (in $ million)

AfDB ADB AIIB CEB EBRD EIB IDBG IsDB NDB WBG

Total

climate

co-

ﬁnance

Adjustment

for multiple

MDB

ﬁnancing

Mitigation

ﬁnance

- 14 9 1 354 6 994

42 821

455 - -

5 444 57 091 56 794

Adaptation

ﬁnance

- - 283 57 708 13 201 213 - -

9 14 470 14 470

Total

- 14 292 1 411 7 702 56 022 668 - -

5 453

71 561 71 264

32 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Table 41. Climate co-ﬁnance ﬂows by MDB and by source in high-income economies, 2022 (in $ million)

AfDB ADB AIIB CEB EBRD EIB IDBG IsDB NDB

WBG

Total

climate

co-

ﬁnance

Adjustment

for multiple

MDB

ﬁnancing

Public direct

mobilisation

- - 5 - - 289 0 - - 3 171

3 464

Public co-ﬁnance

Other MDBs

- - - - 226

- - -

231

IDFC

members

- - - - - 334 - - -

334

Other

international

public

- - 5 - - 5 434 2 - -

5 457

Other

domestic

public

- 2 - 1 411 1 21 280 10 - -

22 704

Total private mobilisation

Private

direct

mobilisation

- - - - 142 5 223 490 - -

933

6 789

Private

indirect

mobilisation

- 12 283 - 7 333 23 463 166 - -

1 326

32 582

32 284

Total

- 14 292 1 411 7 702 56 022 668 - - 5 453

71 561

71 264

MDB climate ﬁnance in high-income economies, 2022 |

34 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

The 2022 MDB climate ﬁnance commitments are presented in this year’s report in two separate

chapters: Chapter II) low-income and middle-income economies, a grouping that includes low,

lower-middle and upper-middle income economies, and Chapter III) high-income economies. More

detailed analysis, data that cannot easily be split by income level such as Climate Finance for Small

Island Developing States and global aggregated MDB data, are provided in this Annex. Data in this

Annex provide for data comparability of this year’s report with previous years’ reports.

Figure 19 outlines MDB climate ﬁnance commitments by income group, showing low- and middle-

income economies separately from high-income economies. For data on climate finance in all

countries of operation including for earlier reporting periods back to 2015, refer to Annex B.

$ billion

2019 2020 2021 2022

Low-income Lower-middle income Upper-middle income

High-income Multi-regional

Figure 19. MDB climate ﬁnance by income levels of borrowing or recipient economies, 2019-2022 (in $ billion)

3 3

AfDB ADB AIIB CEB EBRD EIB WBGIDBG

Low-income and middle-income economies High-income economies

IsDB NDB

100

Figure 20. Total MDB climate ﬁnance commitments in all economies where the multilateral development

banks operate, 2022 (in $ million)

3 651 7 107 2 311

295

618

32 913

4 165

2 469

4 289

5 930

1 050 466

1 300

684 31 666

80 1 419

FURTHER DETAILED ANALYSIS OF

MDB CLIMATE FINANCE DATA

ANNEX A

ANNEX A: further detailed analysis of MDB climate ﬁnance data |

Table 42 presents data on MDB climate ﬁnance by type of recipient or borrower

. In 2022, MDBs

reported $68.6 billion of their climate ﬁnance as being for public entities and $31.1 billion for

private entities. It also shows a total of $117.5 billion coming from climate co-ﬁnance, with 71.1% in

mitigation projects, and 53.7% climate co-ﬁnance from public sources.

Table 42. Total MDB climate ﬁnance and net climate co-ﬁnance by economy income group and by type of

recipient or borrower, 2022 (in $ million)

MDB CLIMATE FINANCE

For low- and middle-income economies For high-income economies

Mitigation 38 198* 36 287

Adaptation 22 718* 2 515

Public 48 637 20 006

Private 12 279 18 796

CLIMATE CO-FINANCE

For low- and middle-income economies For high-income economies

Mitigation 26 773 56 794

Adaptation 19 492 14 470

Public 30 909 32 190

Private 15 356 39 073

1. Public and private sector operations: This determination is based on the status of the ﬁrst recipient or borrower of MDB ﬁnance. The ﬁrst

recipient or borrower is considered to be public when at least 50% of the stakes or shares of the recipient or borrower are publicly owned..

2. (*) See footnote 1 for Figures 1a and 1b. Climate ﬁnance from AIIB ﬁnancing for one project, amounting to $14 million ($7 million for

mitigation and $7 million for adaptation) and reported under ERUM, is excluded from the MDB total amounts to avoid double counting.

Subtracting this amount from ADB’s total climate ﬁnance for low- and middle-income economies yields to $37 946 million for mitigation in

low- and middle-income economies ($74 227 million for total mitigation ﬁnance), and $22 718 million for adaptation in low- and middle-

income economies ($25 233 million for total adaptation ﬁnance).

Table 43 shows total MDB climate finance for all economies where they operate. Of the

$99.5 billion, $96.3 billion came from the MDBs’ own accounts and $3.1 billion from external

resources that were channelled through the institutions.

Table 43. Total MDB climate ﬁnance, 2022 (in $ million)

AFDB ADB AIIB CEB EBRD EIB IDBG ISDB NDB WBG TOTAL

MDBS

For low- and middle-income economies

Own account

3 151 6 721 2 311 295 3 949 4 097 5 556 1 050 466

30 334

57 931

MDB-managed

external

resources

500 385 - - 340 67 373 - - 1 333 2 985*

For high-income economies

Own account

- 2 80 618 2 455 32 869 1 290 0 - 1 365 38 679

MDB-managed

external

resources

- 1 - . 14 44 10 - - 53 123

21 See Annex C.1 for the deﬁnitions of public and private recipients or borrowers.

36 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

AFDB ADB AIIB CEB EBRD EIB IDBG ISDB NDB WBG TOTAL

MDBS

Climate ﬁnance

from MDB own

account, as a

percentage of

MDB operations

from MDB own

account

43% 38% 35% 20% 47% 59% 34% 33% 28% 36% 43%

MDB climate

ﬁnance as a

percentage

of total MDB

operations

45% 39% 35% 20% 43% 57% 35% 33% 28% 37% 43%

Notes:

1. Numbers in the tables and ﬁgures in this report may not add up to the totals shown, due to rounding.

2. “MDB climate ﬁnance” refers to the sum of the climate ﬁnance from the MDBs’ own accounts and the MDB-managed external resources.

3. “Total MDB operations” refers to the sum of the MDBs’ own accounts and MDB-managed external resources.

4. For IsDB, the reported commitment excludes operations of IsDB Group members including the Islamic Corporation for the Development

of the Private Sector (ICD), the International Islamic Trade Finance Corporation (ITFC) and the Islamic Corporation for the Insurance of

Investment and Export Credit (ICIEC).

5. (*) Considering the explanation provided in Figures 1a and 1b about ADB external resources, climate ﬁnance from AIIB ﬁnancing for one

project, amounting to $14 million, reported under ERUM is excluded from the MDB total amounts to avoid double counting. Subtracting this

amount from ADB’s total climate ﬁnance yields to $7 096 million.

6. AIIB’s 2022 climate ﬁnance share was calculated including projects ﬁnanced through the bank’s COVID-19 Crisis Recovery Facility (CRF).

ANNEX A.1. TOTAL MDB CLIMATE FINANCE.

This Annex presents aggregate information on climate finance in low- and middle-income

economies and high-income economies.

Table 44 shows MDBs’ adaptation and mitigation ﬁnance for all economies where they operate.

Table 44. Total MDB climate ﬁnance by income level group and type of climate ﬁnance, 2022 (in $ million)

FOR LOW- AND MIDDLE-INCOME ECONOMIES

MDB Adaptation ﬁnance Mitigation ﬁnance MDB climate ﬁnance

AfDB 2 276 1 375 3 651

ADB 2 829 4 227 7 107

AIIB 423 1 889 2 311

CEB 211 84 295

EBRD 300 3 989 4 289

EIB 431 3 734 4 165

IDBG 2 045 3 885 5 930

IsDB 571 479 1 050

NDB 0 466 466

WBG 13 640 18 027 31 666

Total 22 718* 38 198* 60 916*

FOR HIGH-INCOME ECONOMIES

MDB Adaptation ﬁnance Mitigation ﬁnance MDB climate ﬁnance

AfDB - - -

ADB 1 2 3

AIIB 32 48 80

CEB 11 608 618

ANNEX A: further detailed analysis of MDB climate ﬁnance data |

EBRD 7 2 462 2 469

EIB 1 562 31 351 32 913

IDBG 715 585 1 300

IsDB 0 0 0

NDB - - -

WBG 188 1 231 1 419

Total 2 515 36 287 38 802

(*) See footnote 1 for Figures 1a and 1b.

The multilateral development banks report on the nature of ﬁrst recipients or borrowers

of their

climate ﬁnance (those to whom ﬁnance will ﬂow directly from the MDBs), differentiating between

public and private recipients or borrowers. Total commitment varies signiﬁcantly between the banks’

own accounts and MDB-managed external resources, as Table 45 illustrates. Table 46 shows the

split by type of recipient or borrower for the MDBs’ own accounts and for MDB-managed external

resources.

Table 45. Total MDB climate ﬁnance by source of funds, by type of recipient or borrower and by income level

group, 2022 (in $ million)

FOR LOW- AND MIDDLE-INCOME ECONOMIES

Type of recipient or borrower MDB own account MDB-managed external resources

Public recipient or borrower 46 146 2 491*

Private recipient or borrower 11 785 495

Total 57 931 2 985*

FOR HIGH-INCOME ECONOMIES

Type of recipient or borrower MDB own account MDB-managed external resources

Public recipient or borrower 19 935 71

Private recipient or borrower 18 743 52

Total 38 679 123

(*) See footnote 1 for Figures 1a and 1b.

Table 46. Total MDB climate finance by type of recipient or borrower and by income level group, 2022

(in $ million)

FOR LOW- AND

MIDDLE-INCOME ECONOMIES FOR HIGH-INCOME ECONOMIES

MDB Private Public Private Public

AfDB 777 2 874 - -

ADB 547 6 560 1 2

AIIB 648 1 664 80 -

CEB - 295 - 618

EBRD 2 707 1 581 2 363 106

EIB 1 440 2 724 15 605 17 307

IDBG 1 266 4 664 69 1 231

IsDB - 1 050 - 0

NDB - 466 -

WBG 4 894 26 773 678 741

Total 12 279 48 637* 18 796 20 006

(*) See footnote 1 for Figures 1a and 1b.

22 See Annex C.1 for the deﬁnitions of public and private recipients or borrowers.

38 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

The multilateral development banks reported that 68% of total climate ﬁnance was committed

through investment loans. Illustrative examples of various types of instrument are presented in

tables from Annex C.5.

Table 47. Total MDB climate ﬁnance by type of instrument and by income level group, 2022 (in $ million)

Instrument type For low- and middle-income economies For high-income economies

Equity 1 008 597

Grant 6 078* 6

Guarantee 1 766 972

Investment loan 37 102 30 986

Line of credit 2 839 4 136

Policy-based ﬁnancing 8 427 816

Results-based ﬁnancing 2 105 232

Other instruments 1 591 1 056

Total 60 916* 38 802

Notes:

1. Annex C.5 deﬁnes the various types of instrument.

2. Other instruments include advisory services and bonds. Some MDBs report eligible bonds under the category of investment loans.

3. (*) See footnote 1 for Figures 1a and 1b.

Table 48 shows MDB climate ﬁnance commitments by region

Table 48. Total MDB climate ﬁnance by region and by income level group, 2022 (in $ million)

Region For low- and middle-income

economies

For high-income economies

Central Asia 2 628 -

East Asia and the Paciﬁc 9 846* 180

Europe: European Union 330 35 871

Europe: Non-European Union 4 826 -

Latin America and the Caribbean 12 917 1 727

Middle East and North Africa 4 715 237

South Asia 7 471 -

Sub-Saharan Africa 16 334 11

Multi-regional 1 848 776

Total 60 916* 38 802

(*) See footnote 1 for Figures 1a and 1b.

ANNEX A.2. TOTAL MDB ADAPTATION FINANCE.

Of the $99.7 billion invested in climate ﬁnance, a total of $25.2 billion was committed for climate

change adaptation ﬁnance.

Table 49 presents the 2022 adaptation ﬁgures for the multilateral development banks for all the

economies, with a breakdown of climate change adaptation ﬁnance committed by the MDBs from

their own accounts and from MDB-managed external resources by income economies. Table 50

presents the adaptation ﬁnance ﬁgures by type of recipient or borrower.

23 See Tables B.1 and B.2 for regional groupings.

ANNEX A: further detailed analysis of MDB climate ﬁnance data |

Table 49. Total MDB adaptation ﬁnance in all the economies by MDB according to source of funds, 2022 (in $ million)

FOR LOW- AND

MIDDLE-INCOME ECONOMIES FOR HIGH-INCOME ECONOMIES TOTAL

MDB

MDB own

account

MDB-

managed

external

resources

MDB own

account

MDB-

managed

external

resources

MDB own

account

MDB-

managed

external

resources

AfDB 1 993 282 - - 1 993 282

ADB 2 726 103 1 1 2 727 104

AIIB 423 - 32 - 454 -

CEB 211 - 11 5 221 5

EBRD 252 48 7 0 259 48

EIB 424 7 1 562 - 1 985 7

IDBG 1 997 48 711 5 2 707 53

IsDB 571 - 0 0 571 -

NDB - - - - - -

WBG 12 878 762 150 37 13 028 799

Total 21 473 1 245* 2 473 42 23 945 1 287*

(*) See footnote 1 for Figures 1a and 1b.

Table 50. Total MDB adaptation ﬁnance by MDB and by type of recipient or borrower, 2022 (in $ million)

MDB Private Public

AfDB 261 2 015

ADB 89 2 742

AIIB 36 418

CEB - 221

EBRD 149 158

EIB 347 1 646

IDBG 135 2 625

IsDB - 571

NDB - -

WBG 128 13 700

Total 1 145 24 088*

(*) See footnote 1 for Figures 1a and 1b.

Table 51 breaks down total MDB adaptation ﬁnance by the type of instrument. The multilateral

development banks reported that 65% of adaptation ﬁnance for all economies was committed

through investment loans, followed by grants and policy-based ﬁnancing.

Table 51. Total MDB adaptation ﬁnance by type of instrument, 2022 (in $ million)

Instrument type Total

Equity 19

Grant 3 542*

Guarantee 449

Investment loan 15 854

Line of credit 1 094

Policy-based ﬁnancing 3 240

Results-based ﬁnancing 804

40 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Other instruments 231

Total 25 233*

(*) See footnote 1 for Figures 1a and 1b.

Table 52 shows total adaptation ﬁnance for all the economies by region. The largest proportions of

adaptation ﬁnance were reported in the following regions: Sub-Saharan Africa, Latin America and

the Caribbean, and South Asia.

Table 52. Total MDB adaptation ﬁnance by region, 2022 (in $ million)

Region Total

Central Asia 812

East Asia and the Paciﬁc 2 751*

Europe: European Union 1 570

Europe: Non-European Union 1 049

Latin America and the Caribbean 4 511

Middle East and North Africa 1 826

South Asia 3 884

Sub-Saharan Africa 8 669

Multi-regional 162

Total 25 233*

(*) See footnote 1 for Figures 1a and 1b.

Table 53 reports total MDB adaptation ﬁnance by sector, with 30% in energy, transport, and other

built environment and infrastructure, followed by 17% in cross-cutting operations, and 16% in water

and wastewater systems.

Table 53. Total MDB adaptation ﬁnance by sector, 2022 (in $ million)

Sector group Total

Coastal and riverine infrastructure 348

Crop and food production 2 997

Cross-cutting sectors 4 297

Energy, transport, and other built environment and infrastructure 7 566

Financial services 1 723

Industry, manufacturing and trade 29

Information and communications technology 175

Institutional capacity support or technical assistance 2 391

Other agricultural and ecological resources 1 667*

Water and wastewater systems 4 040

Total 25 233*

(*) See footnote 1 for Figures 1a and 1b.

Adaptation finance by region, for all the economies, with a further breakdown by sector, is

presented in Table 54.

ANNEX A: further detailed analysis of MDB climate ﬁnance data |

Table 54. Total MDB adaptation ﬁnance by sector and by region, 2022 (in $ million)

Central

Asia

East Asia

and the

Paciﬁc

Europe:

European

Union

Europe:

Non-

European

Union

Latin

America

and the

Caribbean

Middle

East and

North

Africa

South

Asia

Sub-

Saharan

Africa

Multi-

regional

Total

Coastal

and riverine

infrastructure

1 54 14 - 130 16 54 74 5 348

Crop and food

production

119 46 95 89 107 622 288 1 534 97 2 997

Cross-cutting

sectors

78 1 090 15 67 999 211 74 8 1 077 13 4 297

Energy,

transport, and

other built

environment

and

infrastructure

156 751 695 517 721 134 2 301 2 265 28 7 566

Financial

services

3 131 48 0 357 273 89 815 7 1 723

Industry,

manufacturing

and trade

0 - - 12 9 - 7 - - 29

Information

and com-

munications

technology

3 9 0 38 32 - 26 66 - 175

Institutional

capacity

support or

technical

assistance

11 52 67 225 1 071 89 128 74 3 5 2 391

Other

agricultural

and ecological

resources

209 388* 8 23 343 42 32 619 3 1 667*

Water and

wastewater

systems

232 230 628 77 741 439 212* 1 478 4 4 040

812 2 751* 1 570 1 049 4 511 1 826 3 884 8 669 162 25 233*

(*) See footnote 1 for Figures 1a and 1b.

ANNEX A.3. TOTAL MDB MITIGATION FINANCE.

Table 55 provides a breakdown of climate change mitigation ﬁnance committed by the multilateral

development banks from MDB own-account and external resources for all economies where MDBs

operate.

42 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Table 55. Total MDB mitigation finance by MDB, and by income level group and by source of funds, 2022

(in $ million)

FOR LOW- AND

MIDDLE-INCOME ECONOMIES FOR HIGH-INCOME ECONOMIES TOTAL

MDB

MDB own

account

MDB-

managed

external

resources

MDB own

account

MDB-

managed

external

resources

MDB own

account

MDB-

managed

external

resources

AfDB 1 157 217 - - 1 157 217

ADB 3 995 282 1 1 3 996 283

AIIB 1 889 - 48 - 1 937 -

CEB 84 - 608 - 692 -

EBRD 3 697 292 2 447 14 6 144 306

EIB 3 674 60 31 308 44 34 981 104

IDBG 3 560 325 580 5 4 139 330

IsDB 479 - 0 - 480 -

NDB 466 - - - 466 -

WBG 17 456 570 1 215 16 18 671 587

Total 36 458 1 740* 36 206 80 72 663 1 821*

(*) See footnote 1 for Figures 1a and 1b.

Table 56 shows a breakdown by type of recipient or borrower.

Table 56. Total MDB mitigation ﬁnance by MDB and by type of recipient or borrower, 2022 (in $ million)

MDB Private Public

AfDB 516 859

ADB 459 3 820

AIIB 691 1 246

CEB - 692

EBRD 4 921 1 529

EIB 16 699 18 386

IDBG 1 200 3 270

IsDB - 480

NDB - 466

WBG 5 444 13 814

Total 29 930 44 555*

(*) See footnote 1 for Figures 1a and 1b.

Table 57 breaks down MDB mitigation ﬁnance by type of instrument. The multilateral development

banks reported that 68% of total mitigation ﬁnance was committed through investment loans,

followed by policy-based ﬁnancing and lines of credit.

Table 57. Total MDB mitigation ﬁnance by type of instrument, 2022 (in $ million)

Instrument type Total

Equity 1 586

Grant 2 542*

Guarantee 2 289

Investment loan 51 974

ANNEX A: further detailed analysis of MDB climate ﬁnance data |

Instrument type Total

Line of credit 5 882

Policy-based ﬁnancing 6 003

Results-based ﬁnancing 1 533

Other instruments 2 412

Total 74 485*

(*) See footnote 1 for Figures 1a and 1b.

Table 58 shows total mitigation ﬁnance by region. The largest proportions of mitigation ﬁnance

were in the following regions: Europe: European Union, Latin America and the Caribbean, Sub-

Saharan Africa, and East Asia and the Paciﬁc.

Table 58. Total MDB mitigation ﬁnance by region, 2022 (in $ million)

Region Total

Central Asia 1 816

East Asia and the Paciﬁc 7 276*

Europe: European Union 34 631

Europe: Non-European Union 3 777

Latin America and the Caribbean 10 133

Middle East and North Africa 3 127

South Asia 3 587

Sub-Saharan Africa 7 675

Multi-regional 2 463

Total 74 485*

(*) See footnote 1 for Figures 1a and 1b.

Table 59 reports MDBs’ mitigation ﬁnance for all the economies by sector with 26.7% to energy

sector, followed by Transports, with 24%.

Table 59. Total MDB mitigation ﬁnance by sector, 2022 (in $ million)

Region Total

Energy 20 019

Mining and metal production for climate action -

Manufacturing 2 374

Agriculture, forestry, land use and ﬁsheries 2 345*

Water supply and wastewater 1 903

Solid waste management 808

Transpor t 17 850

Buildings, public installations and end-use energy efﬁciency 11 397

Information and communications technology (ICT) and digital technologies 316

Research, development and innovation 3 057

Cross-sectoral activities 14 418

Total 74 485*

(*) See footnote 1 for Figures 1a and 1b.

44 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Mitigation ﬁnance by region, for all the economies, with further breakdown by sector, is presented

in Table 60.

Table 60. Total MDB mitigation ﬁnance by sector and by region, 2022 (in $ million)

Central

Asia

East Asia

and the

Paciﬁc

Europe:

European

Union

Europe:

Non-

European

Union

Latin

America

and the

Caribbean

Middle

East and

North

Africa

South

Asia

Sub-

Saharan

Africa

Multi-

regional

Total

Energy 888 1 519 7 391 1 178 2 595 854 1 272 3 243 1 080 20 019

Mining

and metal

production for

climate action

- - - - - - - - - -

Manufacturing 74 260 269 617 4 34 244 15 154 303 2 374

Agriculture,

forestry,

land use and

ﬁsheries

228 673* 42 60 446 90 66 681 60 2 345*

Water

supply and

wastewater

33 261 485 32 514 115 175 287 0 1 903

Solid waste

management

78 272 223 29 120 24 1 24 36 808

Transpor t 145 2 642 9 354 1 004 1 368 1 048 1 123 1 006 160 17 850

Buildings,

public

installations

and end-

use energy

efﬁciency

163 275 7 940 262 824 509 332 604 487 11 397

Information

and com-

munications

technology

(ICT) and digital

technologies

- 39 59 19 50 - 39 66 42 316

Research,

development

and innovation

- 3 2 934 - 53 1 8 39 19 3 057

Cross-sectoral

activities

207 1 331 5 933 574 3 729 241 557 1 571 274 14 418

Total 1 816 7 276* 34 631 3 777 10 133 3 127 3 587 7 675 2 456 74 485*

(*) See footnote 1 for Figures 1a and 1b.

ANNEX A.4. CLIMATE CO-FINANCE AND CLIMATE FINANCE RATIOS.

The multilateral development banks’ climate co-ﬁnance is based on their harmonised deﬁnitions

which can be consulted in Section 1.3.

Table 61 shows climate co-finance flows by adaptation and mitigation for all the economies

where multilateral development banks operate. In order to avoid double counting, the last column

of Tables 61 and 62 nets out potentially double-counted co-financing by considering only the

proportion of co-ﬁnancing for every project that features co-ﬁnancing from another multilateral

development bank.

Table 62 shows 2022 climate co-finance flows as reported by each institution, segmented by

the source of co-ﬁnancing. These CCF ﬁgures are the best estimate of resource ﬂows based on

information available at the time of board approval and/or commitment to each project. In some

cases, two or more multilateral development banks jointly ﬁnance a project, which results in some

overlap between the gross co-ﬁnance ﬁgures reported by the different banks. This table reﬂects

ANNEX A: further detailed analysis of MDB climate ﬁnance data |

the 2022 CCF ﬂows, including the direct and indirect mobilisation attributed to guarantees. The

guarantee exposure of each MDB has been shown as “own account” in Tables 2, 22, 43 and 63.

Table 63 shows climate co-ﬁnance for low- and middle-income economies, high-income economies

and totals, for each multilateral development bank. It also presents climate ﬁnance ratios for each

MDB, calculated with total climate co-ﬁnance numbers from Table 62.

Table 61. Total climate co-ﬁnance ﬂows by MDB and by thematic focus, 2022 (in $ million)

FOR LOW- AND MIDDLE-INCOME ECONOMIES

AfDB ADB AIIB CEB EBRD EIB IDBG IsDB NDB WBG

Total

climate

co-

ﬁnance

Adjustment

for multiple

MDB

ﬁnancing

Mitigation

ﬁnance

1 406 4 075 2 231 181 4 376 5 729 2 447 1 163 2 114 7 550 31 272 26 773

Adaptation

ﬁnance

2 582 4 297 1 648 53 396 1 836 1 793 110 - 8 435 21 149 19 492

Total 3 988 8 372 3 879 234 4 772 7 564 4 240 1 273 2 114

15 986

52 421 46 265

FOR HIGH-INCOME ECONOMIES

AfDB ADB AIIB CEB EBRD EIB IDBG IsDB NDB WBG

Total

climate

co-

ﬁnance

Correction

for

multiple

MDB

ﬁnancing

Mitigation

ﬁnance

- 14 9 1 354 6 994

42 821

455 - - 5 444 57 091 56 794

Adaptation

ﬁnance

- - 283 57 708

13 201

213 - - 9 14 470 14 470

Total - 14 292 1 411 7 702

56 022

668 - - 5 453 71 561 71 264

TOTAL CLIMATE CO-FINANCE

AfDB ADB AIIB CEB EBRD EIB IDBG IsDB NDB WBG

Total

climate

co-

ﬁnance

Correction

for

multiple

MDB

ﬁnancing

Mitigation

ﬁnance

1 406 4 088 2 240 1 535

11 371 48 550

2 902 1 163 2 114

12 994

88 363 83 567

Adaptation

ﬁnance

2 582 4 297 1 931 109 1 103

15 037

2 006 110 - 8 444 35 619 33 962

Total 3 988 8 386 4 171 1 645

12 474 63 587

4 908 1 273 2 114

21 439 123 982

117 529

46 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Table 62. Total climate co-ﬁnance ﬂows by MDB, by source and by income level group, 2022 (in $ million)

AfDB ADB AIIB CEB EBRD EIB IDBG IsDB NDB WBG

Total

climate

co-

ﬁnance

Adjustment

for multiple

MDB

ﬁnancing

For low-

and

middle-

income

econo-

mies

For

high-

income

econo-

mies

For low-

and

middle-

income

econo-

mies

For

high-

income

econo-

mies

For low-

and

middle-

income

econo-

mies

For

high-

income

econo-

mies

For low-

and

middle-

income

econo-

mies

For

high-

income

econo-

mies

For low-

and

middle-

income

econo-

mies

For

high-

income

econo-

mies

For low-

and

middle-

income

econo-

mies

For

high-

income

econo-

mies

For low-

and

middle-

income

econo-

mies

For

high-

income

econo-

mies

For low-

and

middle-

income

econo-

mies

For

high-

income

econo-

mies

For low-

and

middle-

income

econo-

mies

For

high-

income

econo-

mies

For low-

and

middle-

income

econo-

mies

For

high-

income

econo-

mies

Public direct

mobilisation

2 - 122 - 80 5 - - - - 35 289 145 0 - - - - 6 639 3 171 10 485 10 485

Public co-

ﬁnance

Other MDBs 1 307 - 934 - 1 985 - - - 1 736 226 1 260 - 484 - 181 - - - 875 6 8 994 8 994

IDFC

members

421 - 476 - 260 - - - 100 - 460 334 304 - - - - - 200 - 2 555 2 164

Other

international

public

865 - 153 - 17 5 - - 15 - 400 5 434 27 2 1 091 - - - 1 077 17 9 103 8 518

Other

domestic

public

539 - 6 175 2 1 087 - 234 1 411 348 1 2 039 21 280 320 10 - - 1 032 - 352 - 34 830 32 939

Total private

mobilisation

0 0

Private direct

mobilisation

- - 187 - - - - - 257 142 46 5 223 1 321 490 - - - - 2 654 933 11 254 11 254

Private

indirect

mobilisation

854 - 325 12 450 283 - - 2 316 7 333 3 324 23 463 1 639 166 - - 1 082 - 4 189 1 326 46 761 43 175

Total 3 988 8 386 4 171 1 645 12 474 63 587 4 908 1 273 2 114 21 439

123 982

117 529

Note:

1. Co-ﬁnancing ﬁgures are current as of [4 July 2023]. Fluctuations are expected due to changes in project ﬁnancing between board approvals, loan signatures and execution.

2. For non-commercial guarantees, private direct mobilisation corresponds to the underlying investment covered by the guarantee. For MDBs reporting on own account associated with non-commercial guarantees, an adjustment must be made by the MDB to avoid double

counting.

3. Local counterpart ﬁnancing is reported under “Other domestic public”.

ANNEX A: further detailed analysis of MDB climate ﬁnance data |

Table 63. Total MDB climate co-ﬁnance and climate ﬁnance ratios, by MDB and by income level group, 2022

AfDB ADB AIIB CEB EBRD EIB IDBG IsDB NDB WBG Total

Climate co-ﬁnance

For

low-

and

middle-

income

econo-

mies

For

high-

income

econo-

mies

For

low-

and

middle-

income

econo-

mies

For

high-

income

econo-

mies

For

low-

and

middle-

income

econo-

mies

For

high-

income

econo-

mies

For

low-

and

middle-

income

econo-

mies

For

high-

income

econo-

mies

For

low-

and

middle-

income

econo-

mies

For

high-

income

econo-

mies

For

low-

and

middle-

income

econo-

mies

For

high-

income

econo-

mies

For

low-

and

middle-

income

econo-

mies

For

high-

income

econo-

mies

For

low-

and

middle-

income

econo-

mies

For

high-

income

econo-

mies

For

low-

and

middle-

income

econo-

mies

For

high-

income

econo-

mies

For

low-

and

middle-

income

econo-

mies

For

high-

income

econo-

mies

Climate ﬁnance by

MDB

3 651 - 7 107 3 2 311 80 295 618 4 289 2 469 4 165 32 913 5 930 1 300 1 050 0 466 - 31 666 1 419 99 731

Climate co-ﬁnance

3 988 - 8 372 14 3 879 292 234 1 411 4 772 7 702 7 564 56 022 4 240 668 1 273 - 2 114 - 15 986 5 453 123 982

Correction for

multiple MDB

ﬁnancing

(678) - (1 044) - (802) - - - (246) (9) (304) - (25) - - - - - (3 038) (180) (6 791)

MDB climate

activity ﬁnance

6 960 - 14 435 17 5 388 371 529 2 029 8 815 10 161 11 425 88 935 10 144 1 968 2 323 0 2 580 - 44 615 6 691 217 387

Total MDB climate

activity ﬁnance

6 960 14 451 5 760 2 558 18 976 100 360 12 113 2 323 2 580 51 305 217 387

Climate ﬁnance

ratios

AfDB ADB AIIB CEB EBRD EIB IDBG IsDB NDB WBG Total

Climate ﬁnance

from MDB own

account, as a

percentage of MDB

operations from

MDB own account

43% 38% 35% 20% 47% 59% 33% 33% 28% 36% 43%

MDB climate

ﬁnance as a

percentage of total

MDB operations

45% 39% 35% 20% 43% 57% 34% 33% 28% 37% 43%

Note:

1. AIIB’s 2022 climate ﬁnance share was calculated including projects ﬁnanced through the bank’s COVID-19 Crisis Recovery Facility (CRF).

2. Total MDB climate activity ﬁnance refers to the sum of “Total MDB climate ﬁnance” and “Climate co-ﬁnance”.

3. (*) See footnote 1 for Figures 1a and 1b.

48 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

ANNEX A.5. MDB CLIMATE FINANCE IN LEAST DEVELOPED COUNTRIES (LDCS) AND

SMALL ISLAND DEVELOPING STATES (SIDS), 2022

Annex A.5 has been added for the ﬁrst time in this year’s report in response to several users’

requests for further breakdown and details of LDC and SIDS climate ﬁnancing.

The list of countries shown in Annex B.1 presents the classiﬁcation of countries and those that fall

into the LDC category.

In 2022, the multilateral development banks committed $11 663 million to ﬁnance climate change

in LDCs. Most of the climate ﬁnance provided to LDCs is managed by MDBs’ own account, with only

11% of MDB-managed external resources.

Moreover, a total of $2 214 million was committed for climate change ﬁnance for SIDS. Most of

that amount was for low- and middle-income economies.

Additionally, a total of $630 million was committed for climate change ﬁnance for countries that

belong to both categories, LDCs and SIDS.

MDB climate finance allocated to small island states and to least developed economies is

presented in Table 64.

Least developed economies are deﬁned according to the UNFCCC criteria

and presented based

on the UNFCCC list

. Small island states are deﬁned according to the Alliance of Small Island

States (AOSIS) list

. Economies considered to be least developed economies and/or small island

states are listed in Annex B.

Table 64. MDB climate finance for least developed countries and small island developing states, 2022

(in $ million)

Mitigation

ﬁnance

Adaptation

ﬁnance

Total

Least developed countries that are not small island states 5 292 6 385 11 677

Small island developing states that are not least developed economies 1 216 1 011

Least developed countries and small island developing states 134 496 630

1. Some small island developing states are classiﬁed as high-income economies. However, income levels are not a relevant metric in this

context, as they are highly vulnerable to climate change and require vast support for resilient measures.

Table 65: Climate ﬁnance in LDCs, SIDS and countries that belong to both categories, by source of funds and

type of recipient or borrower, 2022

Type of

recipient

borrower

LDCs SIDS Both

MDB own

account

MDB-

managed

external

resources

For low- and middle-

income economies

For high-income

economies

MDB own

account

MDB-

managed

external

resources

MDB own

account

MDB-

managed

external

resources

MDB own

account

MDB-

managed

external

resources

Public

recipient/

borrower

9 898 1 195* 1 461 189 328 5 600 27

Private

recipient/

borrower

493 78 53 2 189 0 2 -

Total 10 390 1 287 * 1 514 191 517 5 603 27

(*) See footnote 1 for Figures 1a and 1b.

The MDBs reported that 61% of climate ﬁnance for LDCs was committed through investment loans,

followed by grants (29%).

24 https://www.un.org/development/desa/dpad/least-developed-country-category/ldc-criteria.html

25 https://unfccc.int/topics/resilience/workstreams/national-adaptation-programmes-of-action/ldc-country-information

26 https://www.aosis.org/member-states

ANNEX A: further detailed analysis of MDB climate ﬁnance data |

The MDBs reported that 46% of climate ﬁnance for SIDS was committed through investment loans,

followed by policy-based ﬁnancing (28%) and grants (13%).

For those countries that belong to both categories, the most common instruments for climate

ﬁnance were grants, followed by investment loans.

As shown in Table 66, climate finance in those countries that belong to both LDCs and SIDS

categories is mainly driven by grants (71%) and investment loans (29%).

Table 66: Climate ﬁnance in LDCs, SIDS and countries that belong to both categories by instrument, 2022

LDCs SIDS Both

For low- and middle-

income economies

For high-income

economies

Instrument

type

Adaptation Mitigation Adaptation Mitigation Adaptation Mitigation Adaptation Mitigation

Equity - - - - - - - -

Grant 1 768* 1 573* 163 101 15 4 363 83

Guarantee 106 41 - 2 160 50 - -

Investment

loan

4 108 2 964 418 421 66 126 133 51

Line of credit - 60 - 0 - - - -

Policy-based

ﬁnancing

190 303 126 462 26 7 - -

Results-

based

ﬁnancing

206 339 - - - - - -

Other

instruments

1 5 5 7 33 36 0 -

Total 6 378* 5 285* 711 994 300 223 496 134

Note:

1. Numbers in the tables and ﬁgures in this table may not add up to the totals shown, due to rounding.

2. (*) See footnote 1 for Figures 1a and 1b.

Sub-Saharan Africa and South Asia are the LDCs regions that receive most climate ﬁnance, with

75% and 19% of the total amount respectively. On the other hand, the majority of the resources

to SIDS is provided in the Latin America and Caribbean region, which receives 65% of the total

amount, followed by East Asia and the Pacific (30%), while for countries that belong to both

categories, climate ﬁnance is shared equally between East Asia and the Paciﬁc, and Latin America

and the Caribbean (40%), with a lower proportion of resources going to Sub-Saharan Africa (20%).

Table 67: Climate ﬁnance in LDCs, SIDS and countries that belong to both categories by region, 2022

LDCs SIDS Both

For low- and middle-

income economies

For high-income

economies

Region Adaptation Mitigation Adaptation Mitigation Adaptation Mitigation Adaptation Mitigation

East Asia

and the

Paciﬁc

270* 239* 383 104 44 149 220 30

Latin

America

and the

Caribbean

- - 302 851 237 74 198 59

Middle East

and North

Africa

140 105 - - - - - -

50 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

South Asia 1 521 664 15 6 - - - -

Sub-

Saharan

Africa

4 446 4 278 11 32 19 - 78 44

Total 6 378* 5 285* 711 994 300 223 496 134

Note:

1. Numbers in the tables and ﬁgures in this table may not add up to the totals shown, due to rounding.

2. (*) See footnote 1 for Figures 1a and 1b.

The adaptation ﬁnance for energy, transport, and other built environment and infrastructure and

the cross-cutting sectors receive most of the resources provided to the LDCs, with 38% and 18%

respectively, followed by water and wastewater systems (14%) and crop and food production (13%).

Regarding the SIDS, the adaptation ﬁnance for energy, transport, and other built environment and

infrastructure receives 40% of the total amount of adaptation ﬁnance, followed by institutional

capacity support or technical assistance (17%) and cross-cutting sectors (16%).

Energy, transport, and other built environment and infrastructure is also the sector that receives

the highest amount of climate ﬁnance in those countries that belong to both categories (59%).

Table 68. Climate ﬁnance by adaptation sector and region in LDCs, SIDS and countries that belong to both

categories, 2022 (in $ million)

LDCs SIDS Both

East

Asia

and the

Paciﬁc

Middle

East

and

North

Africa

South

Asia

Sub-

Saharan

Africa

East

Asia

and the

Paciﬁc

Latin

America

and the

Caribbe-

South

Asia

Sub-

Saharan

Africa

East

Asia

and the

Paciﬁc

Latin

America

and the

Caribbe-

Sub-

Saharan

Africa

Coastal and riverine

infrastructure

- - 47 74 20 39 - 0 - - -

Crop and food

production

5 28 237 584 - 15 - - 2 25 3

Cross-cutting sectors

31 14 336 740 122 24 11 5 22 62 3

Energy, transport,

and other built

environment and

infrastructure

159 23 751 1 485 256 142 4 4 87 105 57

Financial services

- 34 36 414 15 1 - - - 5 -

Industry,

manufacturing and

trade

- - - - - - - - - - -

Information and

communications

technology

0 - - 30 2 2 - 7 2 1 1

Institutional capacity

support or technical

assistance

10 4 47 241 7 150 0 10 12 0 5

Other agricultural

and ecological

resources

66* - 5 82 5 85 - 5 3 - -

Water and

wastewater systems

- 37 62 797 - 80 - - 92 - 9

Total

270* 140 1 521 4 446 427 539 15 30 220 198 78

Note:

1. Numbers in the tables and ﬁgures in this table may not add up to the totals shown, due to rounding.

2. (*) See footnote 1 for Figures 1a and 1b.

The energy sector receives most of the climate change mitigation ﬁnance provided to LDCs (60%),

followed by cross-sectoral activities (15%) and buildings, public installations and end-use energy

ANNEX A: further detailed analysis of MDB climate ﬁnance data |

efﬁciency (11%), similarly to the category that includes countries that are both LDCs and SIDS.

Regarding SIDS, cross-sectoral activities receive 37% of total mitigation ﬁnance, followed by energy

(28%) and the transport sector (13%).

Table 69. Climate ﬁnance by mitigation sector and region in LDCs, SIDS and countries that belong to both

categories, 2022 (in $ million)

LDCs SIDS Both

East

Asia

and the

Paciﬁc

Middle

East

and

North

Africa

South

Asia

Sub-

Saharan

Africa

East

Asia

and the

Paciﬁc

Latin

America

and the

Caribbe-

South

Asia

Sub-

Saharan

Africa

East

Asia

and the

Paciﬁc

Latin

America

and the

Caribbe-

Sub-

Saharan

Africa

Energy

182 86 308 2 580 181 1 47 4 11 1 0 38

Mining and metal

production for climate

action

- - - - - - - - - - -

Manufacturing

- - 11 40 - 3 - - - 0 -

Agriculture, forestry,

land use and ﬁsheries

12* - 23 250 3 10 - - - 13 -

Water supply and

wastewater

- - 43 263 - 94 - - 5 - -

Solid waste

management

- - 1 23 - 44 - - - 0 -

Transpor t

- - 8 88 3 152 - - 7 10 -

Buildings, public

installations and end-

use energy efﬁciency

4 4 158 420 4 78 1 2 10 11 1

Information and

communications tech-

nology (ICT) and digital

technologies

- - - 3 14 6 - 15 - - -

Research,

development and

innovation

- - - - - 0 - - - - -

Cross-sectoral

activities

40 16 111 612 49 392 1 5 7 25 6

Total

239* 105 664 4 278 253 925 6 32 30 59 44

Note:

1. Numbers in the tables and ﬁgures in this table may not add up to the totals shown, due to rounding.

2. (*) See footnote 1 for Figures 1a and 1b.

GEOGRAPHICAL COVERAGE OF THE REPORT

52 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

The inclusion of economies, and the terms and names used in this report to refer to geographical

or other territories, political and economic groupings and units do not constitute and should not be

construed as constituting an express or implied position, endorsement, acceptance or expression

of opinion by the MDBs or their members concerning the status of any country, territory, grouping

and unit, or delimitation of its borders, or sovereignty.

Tables B.1 and B.2. present a list of economies covered by at least one of the MDBs, taken into

account for climate ﬁnance data presented in this report and categorised in accordance with the

World Bank Group’s classiﬁcation list dated June 2022. Least developed economies are deﬁned

according to the UNFCCC list

and small island states are deﬁned according to the Alliance of

Small Island States (AOSIS) list. Note that some least developed economies are also small island

states. In those cases, they are identiﬁed as “both”.

Climate finance for economies marked with an asterisk (*) has not been reported in previous

editions of the Joint Report on MDBs’ Climate Finance.

Table B.1. Climate ﬁnance in low- and middle-income economies for 2015-2022 (in $ million)

Economy Region Income LDC /

SIDS

Total climate ﬁnance in reporting year, in $ million

2015 2016 2017 2018 2019 2020 2021 2022

Afghanistan South Asia

Low

income

LDC - 173 147 144 281 65 485 415

Albania

Non-

European

Union

Upper

middle

income

110 174 15 111 114 34 66 70

Algeria

Middle

East and

North

Africa

Lower

middle

income

1 - - - - - - -

Angola

Sub-

Saharan

Africa

Lower

middle

income

LDC - 15 72 43 155 470 260 522

Argentina

Latin

America

and the

Caribbean

Upper

middle

income

314 508 2 276 1 434 917 121 1 204 2 485

Armenia

Non-

European

Union

Upper

middle

income

108 45 132 45 107 79 210 86

Azerbaĳan

Non-

European

Union

Upper

middle

income

16 171 250 20 8 11 45 80

Bangladesh South Asia

Lower

middle

income

LDC 899 1 315 200 1 296 2 144 1 127 732 1 413

Belarus

Non-

European

Union

Upper

middle

income

43 49 7 241 278 146 30 -

Belize

Latin

America

and the

Caribbean

Upper

middle

income

SIDS 51 4 20 2 13 1 11 49

Benin

Sub-

Saharan

Africa

Lower

middle

income

LDC 21 3 44 126 297 123 232 229

27 http://unfccc.int/cooperation_and_support/ldc/items/3097.php

GEOGRAPHICAL COVERAGE OF THE REPORT

ANNEX B

ANNEX B: geographical coverage of the report |

Economy Region Income LDC /

SIDS

Total climate ﬁnance in reporting year, in $ million

2015 2016 2017 2018 2019 2020 2021 2022

Bhutan South Asia

Lower

middle

income

LDC 2 17 7 4 2 20 24 61

Bolivia

Latin

America

and the

Caribbean

Lower

middle

income

405 373 321 363 124 77 1 196

Bosnia and

Herzegovina

Non-

European

Union

Upper

middle

income

27 95 101 110 180 78 133 133

Botswana

Sub-

Saharan

Africa

Upper

middle

income

- - 143 - 19 - 170 54

Brazil

Latin

America

and the

Caribbean

Upper

middle

income

548 914 766 1 473 1 700 1 436 2 006 2 577

Bulgaria

European

Union

Upper

middle

income

58 156 112 137 5 41 130 350

Burkina Faso

Sub-

Saharan

Africa

Low

income

LDC 9 7 166 130 194 134 311 310

Burundi

Sub-

Saharan

Africa

Low

income

LDC 25 22 28 27 3 108 47 51

Cambodia

East Asia

and the

Paciﬁc

Lower

middle

income

LDC 46 85 86 117 139 121 171 273

Cameroon

Sub-

Saharan

Africa

Lower

middle

income

2 17 329 186 761 57 423 767

Cape Verde

Sub-

Saharan

Africa

Lower

middle

income

SIDS 1 - 15 - 11 5 18 43

Central

African

Republic

Sub-

Saharan

Africa

Low

income

LDC 7 - 10 23 99 8 106 118

Chad

Sub-

Saharan

Africa

Low

income

LDC 6 - - 41 58 101 40 311

China

East Asia

and the

Paciﬁc

Upper

middle

income

1 091 2 349 2 305 2 019 2 424 2 363 1 867 2 635

Colombia

Latin

America

and the

Caribbean

Upper

middle

income

182 904 747 719 980 657 1 595 2 014

Comoros

Sub-

Saharan

Africa

Lower

middle

income

Both 5 - 4 - 23 93 3 60

Congo

Sub-

Saharan

Africa

Lower

middle

income

- 25 2 58 58 1 111 42

Costa Rica

Latin

America

and the

Caribbean

Upper

middle

income

200 - 5 4 162 379 214 301

54 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Economy Region Income LDC /

SIDS

Total climate ﬁnance in reporting year, in $ million

2015 2016 2017 2018 2019 2020 2021 2022

Côte d'Ivoire

Sub-

Saharan

Africa

Lower

middle

income

5 73 296 346 535 453 406 311

Democratic

Republic of

the Congo

Sub-

Saharan

Africa

Low

income

LDC 10 153 128 6 98 305 835 91

Djibouti

Sub-

Saharan

Africa

Lower

middle

income

LDC - 2 - 41 21 103 14 50

Dominica

Latin

America

and the

Caribbean

Upper

middle

income

SIDS - - - 39 70 19 3 29

Dominican

Republic

Latin

America

and the

Caribbean

Upper

middle

income

SIDS 1 137 3 509 258 1 294 690

Ecuador

Latin

America

and the

Caribbean

Upper

middle

income

582 325 27 792 616 446 317 832

Egypt

Middle

East and

North

Africa

Lower

middle

income

511 693 1 585 1 597 1 611 1 508 2 232 1 995

El Salvador

Latin

America

and the

Caribbean

Lower

middle

income

- - 29 52 128 217 525 1

Equatorial

Guinea

Sub-

Saharan

Africa

Upper

middle

income

LDC - - - - 63 - - -

Eritrea

Sub-

Saharan

Africa

Low

income

LDC - - 7 - 34 - - -

Eswatini

Sub-

Saharan

Africa

Lower

middle

income

3 31 - 58 8 27 1 140

Ethiopia

Sub-

Saharan

Africa

Low

income

LDC 79 206 192 1 154 1 214 191 1 154 150

Fĳi

East Asia

and the

Pacific

Upper

middle

income

SIDS 53 31 15 - 2 18 62 74

Gabon

Sub-

Saharan

Africa

Upper

middle

income

- 43 24 95 67 28 77 94

Gambia

Sub-

Saharan

Africa

Low

income

LDC - 5 9 53 21 29 16 113

Georgia

Non-

European

Union

Upper

middle

income

109 187 88 110 415 304 314 237

Ghana

Sub-

Saharan

Africa

Lower

middle

income

32 72 81 63 353 89 148 322

Grenada

Latin

America

and the

Caribbean

Upper

middle

income

SIDS - - 1 12 - 37 4 23

ANNEX B: geographical coverage of the report |

Economy Region Income LDC /

SIDS

Total climate ﬁnance in reporting year, in $ million

2015 2016 2017 2018 2019 2020 2021 2022

Guatemala

Latin

America

and the

Caribbean

Upper

middle

income

- 3 22 31 334 33 735 96

Guinea

Sub-

Saharan

Africa

Low

income

LDC - 7 17 64 90 29 250 225

Guinea-

Bissau

Sub-

Saharan

Africa

Low

income

Both 10 - 3 12 8 12 11 49

Guyana

Latin

America

and the

Caribbean

Upper

middle

income

SIDS 1 7 2 15 15 - 31 276

Haiti

Latin

America

and the

Caribbean

Lower

middle

income

Both 41 4 143 234 107 100 153 258

Honduras

Latin

America

and the

Caribbean

Lower

middle

income

253 44 46 99 184 250 477 205

India South Asia

Lower

middle

income

1 948 3 017 2 678 3 703 3 671 3 549 3 735 3 737

Indonesia

East Asia

and the

Pacific

Lower

middle

income

674 578 873 773 959 1 172 1 637 2 170

Iran

Middle

East and

North

Africa

Lower

middle

income

- - - - 0 - - -

Iraq

Middle

East and

North

Africa

Upper

middle

income

8 610 321 446 103 14 149 3

Jamaica

Latin

America

and the

Caribbean

Upper

middle

income

SIDS 21 57 52 290 3 52 43 6

Jordan

Middle

East and

North

Africa

Upper

middle

income

238 412 517 272 457 262 298 406

Kazakhstan

Central

Asia

Upper

middle

income

438 521 389 260 364 96 564 421

Kenya

Sub-

Saharan

Africa

Lower

middle

income

260 159 581 1 161 378 451 583 789

Kiribati

East Asia

and the

Pacific

Lower

middle

income

Both - 11 - 2 32 49 1 3

Kosovo

Non-

European

Union

Upper

middle

income

74 56 31 48 96 57 96 121

Kyrgyz

Republic

Central

Asia

Lower

middle

income

73 179 55 118 189 101 109 1

56 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Economy Region Income LDC /

SIDS

Total climate ﬁnance in reporting year, in $ million

2015 2016 2017 2018 2019 2020 2021 2022

Lao People’s

Democratic

Republic

East Asia

and the

Pacific

Lower

middle

income

LDC 106 13 40 109 72 59 91 236

Lebanon

Middle

East and

North

Africa

Lower

middle

income

303 27 82 581 241 2 54 24

Lesotho

Sub-

Saharan

Africa

Lower

middle

income

LDC - 11 5 15 108 9 22 30

Liberia

Sub-

Saharan

Africa

Low

income

LDC 3 68 26 4 70 41 81 75

Madagascar

Sub-

Saharan

Africa

Low

income

LDC - 37 131 89 280 195 454 385

Malawi

Sub-

Saharan

Africa

Low

income

LDC 58 1 210 218 210 301 27 351

Malaysia

East Asia

and the

Paciﬁc

Upper-

middle

income

- - - - 0 - - 0

Maldives South Asia

Upper

middle

income

SIDS 5 35 19 2 2 148 83 2

Mali

Sub-

Saharan

Africa

Low

income

LDC - 9 104 94 144 102 9 50

Marshall

Islands

East Asia

and the

Pacific

Upper

middle

income

SIDS 2 1 21 32 12 17 2 46

Mauritania

Sub-

Saharan

Africa

Lower

middle

income

LDC - 6 - 11 39 56 31 4

Mauritius

Sub-

Saharan

Africa

Upper

middle

income

SIDS 9 - - 1 - 81 - -

Mexico

Latin

America

and the

Caribbean

Upper

middle

income

330 277 1 211 1 193 1 006 575 1 277 497

Micronesia

East Asia

and the

Pacific

Lower

middle

income

SIDS - - - - 46 23 40 37

Moldova

Non-

European

Union

Upper

middle

income

45 106 110 7 68 186 189 105

Mongolia

East Asia

and the

Pacific

Lower

middle

income

13 44 150 356 162 255 57 176

Montenegro

Non-

European

Union

Upper

middle

income

62 1 68 25 7 13 12 23

Morocco

Middle

East and

North

Africa

Lower

middle

income

914 729 668 1 057 927 842 916 1 620

Mozambique

Sub-

Saharan

Africa

Low

income

LDC 111 51 55 224 408 312 397 693

ANNEX B: geographical coverage of the report |

Economy Region Income LDC /

SIDS

Total climate ﬁnance in reporting year, in $ million

2015 2016 2017 2018 2019 2020 2021 2022

Myanmar

East Asia

and the

Pacific

Lower

middle

income

LDC 81 107 212 178 90 574 14 -

Namibia

Sub-

Saharan

Africa

Upper

middle

income

- - 58 46 5 82 20 55

Nepal South Asia

Lower

middle

income

LDC 567 111 204 435 252 1 022 280 296

Nicaragua

Latin

America

and the

Caribbean

Lower

middle

income

207 49 235 56 56 20 98 9

Niger

Sub-

Saharan

Africa

Low

income

LDC 12 163 47 29 273 164 219 963

Nigeria

Sub-

Saharan

Africa

Lower

middle

income

1 102 34 1 155 170 1 050 1 343 1 157

North

Macedonia

Non-

European

Union

Upper

middle

income

27 14 8 18 99 72 149 122

Pakistan South Asia

Lower

middle

income

1 161 673 1 018 1 305 1 294 944 2 704 1 043

Panama

Latin

America

and the

Caribbean

High

income

112 25 350 171 67 140 128 643

Papua New

Guinea

East Asia

and the

Pacific

Lower

middle

income

SIDS 36 6 127 8 25 22 84 193

Paraguay

Latin

America

and the

Caribbean

Upper

middle

income

4 4 51 294 116 542 33 57

Peru

Latin

America

and the

Caribbean

Upper

middle

income

85 309 306 201 203 287 571 1 476

Philippines

East Asia

and the

Pacific

Lower

middle

income

657 638 167 505 1 693 878 990 2 908

Romania

European

Union

High

income

249 196 887 768 316 455 1 041 1 146

Russian

Federation

Non-

European

Union

Upper

middle

income

55 - - - - - 95 -

Rwanda

Sub-

Saharan

Africa

Low

income

LDC 63 57 203 217 121 355 293 344

Samoa

East Asia

and the

Pacific

Lower

middle

income

SIDS 22 - 4 5 66 9 5 4

São Tomé

and Príncipe

Sub-

Saharan

Africa

Lower

middle

income

Both 4 6 11 - 32 31 2 13

Senegal

Sub-

Saharan

Africa

Lower

middle

income

LDC 41 16 679 272 168 265 441 590

58 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Economy Region Income LDC /

SIDS

Total climate ﬁnance in reporting year, in $ million

2015 2016 2017 2018 2019 2020 2021 2022

Serbia

Non-

European

Union

Upper

middle

income

100 143 290 621 284 332 418 1 189

Sierra Leone

Sub-

Saharan

Africa

Low

income

LDC - 10 2 51 51 55 112 33

Solomon

Islands

East Asia

and the

Pacific

Lower

middle

income

Both - 10 36 10 101 17 6 74

Somalia

Sub-

Saharan

Africa

Low

income

LDC - 8 - 1 27 228 147 303

South Africa

Sub-

Saharan

Africa

Upper

middle

income

55 59 103 544 178 557 520 5

South Sudan

Sub-

Saharan

Africa

Low

income

LDC - 1 39 - 28 15 70 184

Sri Lanka South Asia

Lower

middle

income

84 212 574 72 604 192 87 477

St. Lucia

Latin

America

and the

Caribbean

Upper

middle

income

SIDS - - 2 35 1 15 6 23

St, Vincent

and the

Grenadines

Latin

America

and the

Caribbean

Upper

middle

income

SIDS - - 9 - 11 10 13 20

Sudan

Sub-

Saharan

Africa

Low

income

LDC 5 - 13 41 58 13 572 52

Suriname

Latin

America

and the

Caribbean

Upper

middle

income

SIDS 1 8 26 32 95 19 - 39

Syrian Arab

Republic

Middle

East and

North

Africa

Low

income

- - - - 1 - - -

Tajikistan

Central

Asia

Lower

middle

income

149 34 232 192 116 214 150 210

Tanzania

Sub-

Saharan

Africa

Lower

middle

income

LDC 243 138 549 198 44 376 455 612

Thailand

East Asia

and the

Pacific

Upper

middle

income

176 91 130 533 97 76 316 269

Timor-Leste

East Asia

and the

Pacific

Lower

middle

income

Both - 5 9 2 - 46 40 75

Togo

Sub-

Saharan

Africa

Low

income

LDC - - 6 42 32 43 40 52

Tonga

East Asia

and the

Pacific

Upper

middle

income

SIDS 15 8 1 14 83 28 27 55

ANNEX B: geographical coverage of the report |

Economy Region Income LDC /

SIDS

Total climate ﬁnance in reporting year, in $ million

2015 2016 2017 2018 2019 2020 2021 2022

Tunisia

Middle

East and

North

Africa

Lower

middle

income

19 96 387 265 427 90 192 298

Turkey

Non-

European

Union

Upper

middle

income

2 582 2 135 1 790 1 450 1 449 1 383 2 386 2 200

Turkmenistan

Central

Asia

Upper

middle

income

1 1 6 5 - 4 2 -

Tuvalu

East Asia

and the

Pacific

Upper

middle

income

Both 7 3 1 10 26 13 3 62

Uganda

Sub-

Saharan

Africa

Low

income

LDC 124 15 166 621 283 394 330 913

Ukraine

Non-

European

Union

Lower

middle

income

940 865 833 519 1 115 1 192 1 128 461

Uzbekistan

Central

Asia

Lower

middle

income

61 55 270 1 162 823 1 005 1 029 1 650

Vanuatu

East Asia

and the

Pacific

Lower

middle

income

SIDS 23 51 17 - - 84 5 72

Venezuela

Latin

America

and the

Caribbean

Not

classi-

ﬁed

- - - - - - - 1

Vietnam

East Asia

and the

Pacific

Lower

middle

income

385 1 211 862 210 445 510 523 327

West Bank

and Gaza

Middle

East and

North

Africa

Lower

middle

income

5 1 2 15 22 77 28 57

Yemen

Middle

East and

North

Africa

Low

income

LDC - - - 78 131 23 169 246

Zambia

Sub-

Saharan

Africa

Low

income

LDC 68 20 140 113 81 45 20 56

Zimbabwe

Sub-

Saharan

Africa

Lower

middle

income

12 18 24 - 4 36 8 14

60 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Table B.2. Climate ﬁnance in high-income economies for 2015-2022 (in $ million)

Economy Region Income Least

Developed

Economy/

Small

Island

State

Total climate ﬁnance in reporting year, in $ million

2015 2016 2017 2018 2019 2020 2021 2022

Austria

European

Union

High

income

1 101* 1 188* 852* 344* 397 870 453 389

Bahamas

Latin

America

and the

Caribbean

High

income

SIDS 1 1 44 100 4 218 143 148

Bahrain

Middle

East and

North

Africa

High

income

SIDS - - - - - - 32 -

Barbados

Latin

America

and the

Caribbean

High

income

SIDS 1 5 - - 53 158 117 98

Belgium

European

Union

High

income

427* 1 351* 689* 697* 587* 432* 1 344 1 653

Chile

Latin

America

and the

Caribbean

High

income

119 153 208 7 22 459 506 550

Cook Islands

East Asia

and the

Paciﬁc

High

income

SIDS - 4 12 - 5 5 - -

Croatia

European

Union

High

income

174 16 68 311 36 134 281 268

Cyprus

European

Union

High

income

22 27 46 34 45 91 9 56

Czech

Republic

European

Union

High

income

91 11* 144* 59* 620 498 733 1 091

Denmark

European

Union

High

income

115* 2* 151* 175* 335 275 564 605

Estonia

European

Union

High

income

47 89 5 8 10 182 89 19

Finland

European

Union

High

income

420* 1 357* 639* 942* 284 258 575 340

France

European

Union

High

income

4 185* 3 124* 4 4 61* 2 673* 3 669 4 895 6 971 6 160

Germany

European

Union

High

income

1 669* 2 390* 1 768* 1 868* 1 711 3 160 2 181 4 310

Greece

European

Union

High

income

216* 91 673 225 732 1 353 1 193 1 839

Hungary

European

Union

High

income

497 155 31 155 155 70 592 713

Iceland

Non-

European

Union

High

income

- 189* - - - - - -

Ireland

European

Union

High

income

188* 219* 148* 221* 144 449 262 540

Israel

Middle

East and

North

Africa

High

income

160 - - - - - 17 224

Italy

European

Union

High

income

2 593* 2 437* 2 492* 1 964* 1 985 3 473 3 546 5 172

ANNEX B: geographical coverage of the report |

Economy Region Income Least

Developed

Economy/

Small

Island

State

Total climate ﬁnance in reporting year, in $ million

2015 2016 2017 2018 2019 2020 2021 2022

Latvia

European

Union

High

income

247 2 86 - 102 2 68 128

Lithuania

European

Union

High

income

183 215 95 157 30 559 131 114

Luxembourg

European

Union

High

income

60* 3* - - 223 0 7 21

Malta

Middle

East and

North

Africa

High

income

- - - - 1 0 - 7

Nauru

East Asia

and the

Paciﬁc

High

income

SIDS - - 3 62 22 - - 15

Netherlands

European

Union

High

income

630* 465* 367* 913* 816 795 1 433 702

New

Caledonia

East Asia

and the

Paciﬁc

High

income

SIDS - - - - 1 0 - -

Norway

Non-

European

Union

High

income

- 6* 347* 74* 72 - 282 -

Oman

Middle

East and

North

Africa

High

income

- - - - 264 - - 1

Palau

East Asia

and the

Paciﬁc

Upper-

middle

income

SIDS - - - 2 - 8 1 2

Poland

European

Union

High

income

1 189 1 806 1 562 1 286 2 095 2 790 3 190 3 294

Portugal

European

Union

High

income

- - - - 303 296 248 725

Seychelles

Sub-

Saharan

Africa

High

income

SIDS 25 - - 2 0 5 9 19

Singapore

East Asia

and the

Paciﬁc

High

income

SIDS - - - - - - 20 178

Sint Maarten

(Dutch part)

Latin

America

and the

Caribbean

High

income

SIDS - - - - 118 55 25 44

Slovak

Republic

European

Union

High

income

302 87 53 281 143 36 74 99

Slovenia

European

Union

High

income

154 18 47 1 93 6 46 122

Spain

European

Union

High

income

1 973* 560* 1 876* 1 526* 2 561 3 259 4 498 5 621

Sweden

European

Union

High

income

557* 417* 1 4 31* 1 038* 1 383 1 681 572 717

Switzerland

Europe

and

Central

Asia

High

income

- 6 - - 2 - - -

62 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Economy Region Income Least

Developed

Economy/

Small

Island

State

Total climate ﬁnance in reporting year, in $ million

2015 2016 2017 2018 2019 2020 2021 2022

Trinidad and

Tobago

Latin

America

and the

Caribbean

High

income

SIDS 1 1 - - - 21 1 65

United Arab

Emirates

Middle

East and

North

Africa

High

income

- - - - 2 2 2 -

United

Kingdom

Non-EU

High

income

4 010* 3 272* 376* 255 179 - - -

Uruguay

Latin

America

and the

Caribbean

High

income

139 100 113 143 342 306 164 177

Table B.3. Climate ﬁnance in regional, global and multi-regional projects for 2015-2022 (in $ million)

Economy Region Income Total climate ﬁnance in reporting year, in $ million

2015 2016 2017 2018 2019 2020 2021 2022

Regional Regional Regional 1 427 409 1 436 2 143 2 668 2 425 4 106 5 714

Global Global Global 169 77 - - 103 145 188 179

Multi-

regional

Multi-

regional

Multi-

regional

147 52 193 339 20 343 75 186

Note: Climate ﬁnance ﬁgures for the Czech Republic were reported under the EU-12 region in the 2015 Joint Report on MDBs’ Climate Finance.

Figures for Greece were reported under the EU-12 region starting from the 2016 edition of the report.

To facilitate comparability with data reported in previous years, Figure B.1 presents climate ﬁnance

commitments for the period 2011-18 as in past reports, plus the columns for 2019-22 for the same

set of economies. Note, however, that this ﬁgure is provided for historical comparison only. The

2022 edition of the report includes all economies where the MDBs operate, with a disaggregation

by the income level of the borrowing or recipient country.

ANNEX B: geographical coverage of the report |

$ billion

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

AfDB

ADB

ADB CEBAIIB EBRD

EIB IDBG IsDB NDB WBG

Figure B.1. Climate ﬁnance commitments for 2011-21 (in $ billion)

10.7

5.6

3.7

3.2

27.0

2.3

27.4

2.2

1.6

12.7

3.7

3.1

3.3

26.8

1.9

2.2

9.4

5.2

3.5

3.3

23.8

1.2

1.7

1.2

11.8

2.5

5.2

4.1

2.9

28.3

1.9

10.7

5.1

3.2

2.9

25.1

1.4

11.5

2.7

4.3

3.5

4.4

1.1

35.2

13.2

4.3

5.5

4.6

5.2

43.1

21.3

5.7

5.0

3.8

4.0

3.3

46.4

18.8

6.5

5.0

7.1

3.6

0.5

45.4

22.0

7.2

3.4

3.9

5.3

0.3

1.2

2.1

58.8

71.0

28.5

5.6

2.8

6.4

8.6

3.9

0.7

1.1

0.5

2.4

0.9

4.8

3.7

7.1

6.8

8.9

7,2

33.1

2.4

0.3

Notes:

1. Annex B details the economies reported for previous years.

2. In past editions of the Joint Report on Multilateral Development Banks’ Climate Finance, for the years 2011-18, EIB climate ﬁnance ﬁgures

were restricted to developing and emerging economies in transition where other MDBs were operating and did not include other economies

where only the EIB was operating and supported climate action.

3. In the years 2011-14, the numbers for the WBG included only IFC and IDA and IBRD, and IFC included short-term ﬁnance (such as trade

ﬁnance). Since 2015 IFC has not included short-term ﬁnance when reporting its climate ﬁnance ﬁgures. MIGA ﬁnance has been included

since 2015.

4. For ADB, External Resources under Management (ERUM) include ﬁnance administered for other clients, including AIIB. ADB administers

several AIIB projects, some of which have climate ﬁnance. For 2021, ADB’s climate adaptation ﬁnance of $19 million and climate mitigation

ﬁnance of $893 million from ADB-administered AIIB projects are reported under ERUM. As AIIB reports climate ﬁnance as a share of its

ﬁnancing for these projects under its own resources, the 2021 MDB totals have excluded these ﬁgures from ADB to avoid double counting.

During 2022, ADB’s climate adaptation ﬁnance of $7 million and climate mitigation ﬁnance of $7 million from ADB-administered AIIB

projects are reported under ERUM. This difference is not noticed in this graph as the amount equals $0.014 billion.

64 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

ANNEX C.1. DEFINITIONS AND CLARIFICATIONS

Avoiding double counting: Where the same project, sub-project or project element contributes

to mitigation and adaptation, an MDB’s individual processes will determine which proportion is

counted as mitigation or as adaptation, so that the actual ﬁnancing will not be recorded more than

once. Some MDBs are reporting separate category climate ﬁnance in projects where the same

components or elements contribute to mitigation and adaptation simultaneously. The MDBs

are working on the best method for reporting projects where the same components or elements

contribute to both mitigation and adaptation.

Conservativeness: Where data are unavailable, any uncertainty must be overcome by taking

a conservative approach, where under-reported rather than over-reported climate finance is

preferable.

Financing instruments: This report accounts for climate ﬁnance through the largest and most

relevant development-ﬁnance instruments of MDBs, including grants, loans, guarantees, equity,

and performance-based instruments.

Granularity: MDBs report climate finance by taking only those components and/or sub-

components or elements or proportions of projects with activities that contribute directly to or

promote climate change adaptation and/or mitigation.

Investments and technical assistance: Refers to vehicles that MDBs use to channel speciﬁc

investments to ﬁnance capital and recurrent expenditures for goods and services, as well as to

specialised advisory services and capacity-building initiatives.

MDB-managed external resources: Refers to the volume of operations supported by bilateral

institutions through dedicated climate ﬁnance entities such as the GEF and CIF, or other donor

funds such as EU blending facilities, which may also be reported to the Development Assistance

Committee of the Organisation for Economic Co-operation and Development (OECD) by contributor

countries.

Point of reporting: Data reported herein reflect financial commitments at the time of board

approval or ﬁnancial agreement signature and is therefore based on ex-ante estimations. All efforts

have been made to prevent double counting. No revisions will be issued in cases where a project’s

scope changes later to either increase or decrease climate ﬁnancing.

Private direct mobilisation: Financing from a private entity on commercial terms due to the

active and direct involvement of an MDB leading to commitment. Evidence of active and direct

involvement includes mandate letters, fees linked to financial commitment or other valid or

auditable evidence of an MDB’s active and direct role leading to commitments by private ﬁnanciers.

Private direct mobilisation does not include sponsor ﬁnancing.

Private indirect mobilisation: Financing from private entities supplied in connection with a

speciﬁc activity for which an MDB is providing ﬁnancing, where no MDB is playing an active or

direct role that leads to the commitment of the private entity’s ﬁnance. Private indirect mobilisation

includes sponsor ﬁnancing, if the sponsor qualiﬁes as a private entity.

Public and private sector operations: This determination is based on the status of the ﬁrst

recipient or borrower of MDB ﬁnance. The ﬁrst recipient or borrower is considered to be public

when at least 50% of the stakes or shares of the recipient or borrower are publicly owned.

Public direct mobilisation: Financing from a public entity due to the active and direct involvement

of an MDB leading to commitment. Evidence of active and direct involvement includes mandate

letters or other valid or auditable evidence of an MDB’s active and direct role. The main difference

METHODOLOGIES AND DEFINITIONS

ANNEX C

ANNEX C: methodologies and deﬁnitions |

between an external resource under MDB management (ERUM) and public direct mobilisation is

the disbursement which under public direct mobilisation goes directly from a public entity to the

beneﬁciary.

Recipient or borrower: Refers to the first borrower or beneficiary to whom finance will flow

directly. The MDBs acknowledge that this classification is neither simple nor straightforward

and that the characteristics of the ﬁrst recipient or borrower may not be the same as those of

the ﬁnal beneﬁciary or borrower. An example would be a loan to a national development bank (the

ﬁrst recipient) for energy efﬁciency in small and medium-sized enterprises (the ﬁnal beneﬁciaries).

Operations through public-private partnerships (PPPs) add another layer of complexity to this

classiﬁcation.

Reporting period: This report’s data cover the ﬁscal year 2022. Even though MDBs do not follow

the same reporting cycle, data remain comparable across MDBs as all reporting cycles correspond

to a 12-month period.

Resources covered: These include MDBs’ own accounts as well as a range of external resources

managed by the MDBs and various sources of co-ﬁnancing.

Values of zero and “—”: Reporting is complete for all ﬁelds and tables. A value of 0 in a table

means that the value is below $0.5 million while a “—“ means that no amount was reported. As

all ﬁnancial ﬁgures are rounded to the nearest $ million, calculations contained in a table may vary

slightly and may not always add up to 100% or to the total shown.

ANNEX C.2. JOINT METHODOLOGY FOR TRACKING CLIMATE CHANGE ADAPTATION FINANCE

Between 2021 and 2022, the MDBs carried out a review of the joint MDB methodology for tracking

adaptation finance, which aimed to better characterise adaptation activities and to provide

guidance on the application of the joint methodology in a broader range of ﬁnancing instruments.

The outcome of this review, agreed at COP27 among all MDBs, was an updated methodology to be

applied from 2023 that reﬂects the evolving understanding of adaptation and climate resilience

and advances made in the ﬁelds of adaptation ﬁnance. In this context, the present report does not

reﬂect the tracking of adaptation ﬁnance based on the updated methodology.

Background and guiding principles

Climate resilience and adaptation are intrinsically linked to development. This makes it challenging

to accurately estimate adaptation finance elements in development operations. In response

to this challenge, the joint MDB Working Group on Climate Finance Tracking applies a common

adaptation ﬁnance tracking methodology to identify within the development operations of MDBs

those speciﬁc adaptation activities (or, in other words, the differentiating elements of development

operations) that are carried out in response to perceived or expected climate change impacts. The

methodology applies a context-speciﬁc, location-speciﬁc and granular approach, and estimations

are made conservatively to reduce scope for over-reporting of adaptation ﬁnance.

The MDB adaptation finance tracking methodology considers the sub-project level or project-

element level to be appropriate. The joint MDB approach also seeks to identify the links between

adaptation activities and the project’s explicit intent to reduce vulnerability to climate change.

Thus, the volume of MDB-reported adaptation ﬁnance is an estimation of total project ﬁnance for

speciﬁc project activities that contribute to overall project outcomes in the process of adapting to

climate change.

66 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

It is important to note that the MDBs’ estimated climate ﬁnance may not express the full value of

project ﬁnance that contributes to climate resilience. For instance, the granular approach would

capture ﬁnancing for improved drainage of a newly constructed road to withstand heavy rainfall or

storm surges that in turn contributes to the overall resilience of the road and the investment. The

granular approach does not capture the value of the entire project or investment that may increase

resilience due to specific adaptation activities within the project. In addition, some activities

without associated incremental costs, such as operational procedures to ensure business

continuity or the practice of siting assets outside the range of a future storm surge, may not be

tracked in quantitative terms.

MDB methodology and MDB-IDFC common principles

MDBs and the International Development Finance Club (IDFC) are fully committed to promoting

and supporting climate-resilient development as an essential part of the sustainability of their

investments. With this shared commitment, MDBs and the IDFC work together towards improved

definitions and understanding of the different approaches and principles for tracking climate

change adaptation ﬁnance.

As a result, in July 2015 these institutions agreed on the Common Principles for Climate Change

Adaptation Finance Tracking. The Principles establish the parameters with which to identify and

estimate the volume of adaptation ﬁnance in MDB and IDFC operations. They also form the basis

for further joint work to increase the comparability of reported figures on climate adaptation

ﬁnance and to harmonise key concepts related to reporting guidelines and processes. MDBs and

the IDFC are currently developing additional metrics to identify and report on climate resilience in

their development operations.

Application of the adaptation ﬁnance tracking methodology

The MDB methodology on adaptation ﬁnance tracking consists of the following three key steps:

1. Setting out the climate change vulnerability context of the project;

2. Making an explicit statement of intent of the project to reduce climate change vulnerability; and

3. Articulating a clear and direct link between speciﬁc project activities and the project’s objective to

reduce vulnerability to climate change.

The identiﬁcation and estimation of adaptation ﬁnance is limited solely to those project activities

(that is, projects, project components, or elements or proportions of projects) that are clearly linked

to the climate change vulnerability context.

Step 1. Context of vulnerability to climate change

For a project to be considered as contributing to adaptation, the context of climate change

vulnerability must ﬁrst be set out clearly using a robust evidence base. Project documents may

refer to existing analyses and reports or to original, bespoke assessments of climate change

vulnerability, such as those carried out as part of project preparation. Good practice in the use of

existing analyses or reports includes citing authoritative, preferably peer-reviewed sources, such as

academic journals, national communications to the UNFCCC, Nationally Determined Contributions

(NDCs), reports of the Intergovernmental Panel on Climate Change, or strategic programmes for

climate resilience.

Good practice in conducting original, bespoke analysis entails the use of information from trusted

sources, which document the vulnerability of communities, physical assets or ecosystems to

climate change as well as the use of recent climate trends including any departures from historic

means. These may be combined with climate change projections drawn from a range of climate

change models, with high and low greenhouse gas emission scenarios, to explore the full array of

projected outcomes and uncertainties. Climate projection uncertainties should be presented and

interpreted in a transparent way. The timescale of projected climate change impacts should match

ANNEX C: methodologies and deﬁnitions |

the intended lifespan of the assets and systems being ﬁnanced through the project (for example, a

time horizon of 2030, 2050, 2080, and so on).

Step 2. Statement of purpose or intent

Once a project’s context of vulnerability to climate change has been established, the project should

set out the explicit intention to address the context-speciﬁc and location-speciﬁc climate change

vulnerabilities in response to the project’s climate vulnerability assessment. This is an important

step to distinguish between a development project contributing to climate change adaptation and

a standard development project.

The methodology is ﬂexible about the location and form of this statement of intent in the document,

as long as the MDB is able to record and track the rationale for each adaptation element linked to

the climate-change vulnerability context described. MDB projects with adaptation ﬁnance usually

state — in ﬁnal technical documents, documents for board approval, internal memos or other

associated project documents — the intention to reduce vulnerability.

Step 3. Clear and direct link between climate change vulnerability and project activities

In line with the principles of the overall MDB climate ﬁnance tracking methodology, adaptation

ﬁnance estimations consider only the ﬁnance allocated to speciﬁc project activities that are clearly

linked to the project’s climate-change vulnerability context.

Where climate change adaptation activities are planned in projects that have additional objectives,

adaptation finance tracking takes into account the estimated incremental cost or investment

associated with such discrete project components — or elements of project design — that address

risks and vulnerabilities under conditions of current and future climate change, and compares

these with a project design that does not consider such conditions.

When it is not possible to estimate incremental cost or investment directly from project budgets

— for example, when using policy instruments or balance-sheet lending, equity investments or

credit-line lending through ﬁnancial intermediaries — a proportion of the project cost or investment

corresponding to adaptation activities may be used to represent the incremental amount.

Table 1 in Annex B of the 2016 Joint Report on Multilateral Development Bank’s Climate Finance

provides a list of examples illustrating sector-speciﬁc and subsector-speciﬁc adaptation activities

in which MDB adaptation ﬁnance may be identiﬁed. The list is not meant to be exhaustive, nor is it

intended for application as a positive list. It is for illustrative purposes only. Any adaptation ﬁnance

that is identiﬁed needs to be substantiated through the application of the three-step process

described above.

For an illustration of how the MDB adaptation finance tracking methodology is applied to

development operations, see Tables C.2.1 to C.2.4.

Adaptation ﬁnance tracking among development ﬁnance institutions

A growing number of institutions and initiatives work on the methodologies for tracking climate

adaptation finance and make increasing efforts to harmonise these approaches. The MDB-

IDFC common principles result from such joint work. These institutions continue their efforts

for greater harmonisation, comparability and transparency of their reported climate ﬁnance. In

addition, the OECD, which designed and applies the OECD-DAC Rio Markers, recommends the MDB

methodology‘s three-step approach to tracking climate adaptation ﬁnance as a “best practice”.

The OECD’s efforts have resulted in improved guidance for tracking bilateral ofﬁcial development

assistance (ODA) targeting climate change adaptation.

28 www.ebrd.com/2016-joint-report-on-mdbs-climate-ﬁnance.pdf

68 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

The review of the adaptation ﬁnance tracking aims to take stock of recent developments in the

ﬁeld of adaptation ﬁnance, MDBs’ efforts to support climate adaptation and resilience through

a wide range of sectors beyond traditional infrastructure sectors, and the increasing diversity of

ﬁnancial methods that are used to support adaptation and resilience. This review complements

ongoing efforts by MDBs to enhance the robustness and transparency of climate ﬁnance tracking

and support climate action, in line with the objectives of the Paris Agreement.

Table C.2.1. Case study #1 of tracking adaptation ﬁnance in projects

Project focus Climate Resilience of a National Port Sector

Sector Transport — Ports and Maritime

Brief description

of project

The project aims to strengthen the climate resilience of ports on an exposed coastline of the

client country by introducing physical climate adaptation and resilience measures in the ports

and undertaking a large-scale capacity building programme for the sector to address barriers to

climate adaptation.

Climate

vulnerability

context

The client country is expected to face the consequences of climate change with long-term changes

in climate and more frequent extreme events. The coastline is particularly vulnerable to sea-level

rise and associated climate impacts. The sea level is expected to rise by 0.25m by 2050 and by

up to 0.6m by 2100 relative to 2015. This also results in an increase in wave energy, which has

more damaging impacts to physical structures. Recent episodes of severe weather, which caused

widespread damage to several ports, demonstrate that the impacts are already being felt. Within

the client country, ports play a strategic role in linking the national economy to wider markets as

98% of external trade passes through the country’s ports. Therefore, adapting ports to the impacts

of climate change and building their resilience is imperative.

Statement of

purpose or intent

to reduce climate

vulnerability

The primary intention of the project is to adapt and improve the resilience of the ports sector to the

impacts of climate change.

Project activities

linked to

reducing climate

vulnerability

The physical infrastructure works financed in the project include enhancements to existing

breakwaters, quay strengthening and rehabilitation. These investments are expected to improve

the quality of the physical infrastructure and the ability of the relevant ports to continue operations

in the face of rising sea levels and increased wave energy. In addition to the physical infrastructure

works, the project also ﬁnances a substantial capacity-building component to further develop

knowledge and expertise within the port sector for managing the physical risks of climate change

on an ongoing basis.

Type of ﬁnancial

instrument

Investment loan

Estimation of

total adaptation

ﬁnance (amount

and percentage)

The MDB provided a loan of €40 million, of which 70% was reported as adaptation ﬁnance on a

proportional basis, linked to the share of project activities that are considered adaptation activities

and the expected climate resilience outcomes of reduced weather-related damage and disruption.

Table.C.2.2. Case study #2 of tracking adaptation ﬁnance in projects

Project focus Improving Protection against Health Risks through Climate Risk Management and Building

Resilience against Catastrophic Events

Sector Health Nutrition and Population

Brief description

of project

The programme aims to create a climate-smart health system where climate-vulnerable populations

can adapt to and be treated for the potential increase in vector-borne diseases (such as malaria and

dengue fever) due to ﬂooding and receive health advice on how to manage health impacts resulting

from increasing air pollution and rising temperatures.

ANNEX C: methodologies and deﬁnitions |

Climate

vulnerability

context

The country has experienced rising average temperatures and has seen more erratic rainfall and

increased incidence of droughts and ﬂoods. Public health impacts include an increase in heat-

related mortality, a higher incidence of skin cancer, respiratory illness, cardiovascular disease, and

an increase in diarrheal deaths. There has also been an expansion of dengue fever transmission

vectors and declines in outdoor labour productivity. This is particularly concerning for the large

agricultural workforce which often struggles to pay for health insurance coverage, a situation

which is expected to be further exacerbated by climate change impacts and reduced agricultural

productivity.

Statement of

purpose or intent

to reduce climate

vulnerability

The government social reform programme is aimed at ensuring better protection against health

risks and is driven by an increased vulnerability to climate change. It addresses the need to

manage impacts from climate change-exacerbated diseases for vulnerable populations, especially

children, the elderly, and the large proportion of the workforce that work outdoors.

Project activities

linked to

reducing climate

vulnerability

Adaptation activities ﬁnanced by this programme include expanding mandatory health insurance

coverage and pension, including to climate vulnerable populations such as workers employed in

agriculture and tourism; cash transfers acting as a consumption smoothing tool during times of

income volatility caused by extreme weather events such as ﬂoods or droughts to protect food

security and human capital of vulnerable families; establishing a steering committee dedicated

to improving the healthcare system’s resilience to climate change in line with the goal established

at COP26, along with the establishment of risk management units for both climate-related and

disaster risks and implementation of drought plans.

Type of ﬁnancial

instrument

Policy-based ﬁnancing

Estimation of

total adaptation

ﬁnance (amount

and percentage)

The total project cost was $500 million, completely ﬁnanced by the MDB. Adaptation ﬁnance was

estimated at $150 million (around 30% of the MDB’s total ﬁnancing) to account for the proportion

of the project’s investments directly addressing climate change adaptation, such as expansion of

health insurance (4%) and a pension programme targeting climate-vulnerable populations (4%),

establishing a steering committee dedicated to improving the resilience of the healthcare system

(7%), cash transfers (1%), natural risk management units, and drought plans (14%).

Table C.2.3. Case study #3 of tracking adaptation ﬁnance in projects

Project focus Anchoring the issuance of Infrastructure Asset-backed Securities (IABS) and contributing

to the development of infrastructure as an investment asset class

Sector Multi-sector

Brief description

of project

Through this project, the MDB makes an anchor investment of $80 million in the issuance of

IABS by an operating platform (the client ﬁnancial intermediary — FI)

. The operating platform

is dedicated to the purchase, securitisation and distribution of infrastructure loans in emerging

markets.

This project is in response to the need to bridge the gap in financing critical infrastructure in

emerging markets, including infrastructure that aims to reduce the adverse impacts of climate

change and strengthen the climate and disaster resilience of communities and economies.

Through this project, the MDB seeks to ﬁnance the development of the IABS capital market in

emerging economies. Speciﬁcally, as an anchor investor, the MDB aims to scale up private ﬁnance

for low-carbon and climate-resilient infrastructure development through direct provision of capital

and strengthening of market positioning for such assets.

Climate

vulnerability

context

Due to their geographic location and prevailing climate conditions, a number of emerging

economies targeted by the FI have been experiencing challenges of water security. With climate

change, a projected further decline in fresh water supply in these countries is expected to

exacerbate the ongoing challenges. In addition to a range of other measures, infrastructure

development that would help provide additional sources of water supply is needed to avert the

prospect of water insecurity in these highly water-constrained economies.

Statement of

purpose or intent

to reduce climate

vulnerability

To help avert the impeding deterioration of water scarcity in the FI target countries, the FI has

included investments in critical infrastructure that provide clean potable water and support food

security to water-stressed communities in its project pipeline, in line with its Sustainable Finance

Framework.

29 The FI is committed to implementing a Board-approved corporate climate strategy for transitioning towards a Paris-aligned pathway. The

strategy has set an ambition to achieving net zero by 2050 and further enhance climate risk management and disclosure, including

reporting under TCFD.

70 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Project focus Anchoring the issuance of Infrastructure Asset-backed Securities (IABS) and contributing

to the development of infrastructure as an investment asset class

Project activities

linked to

reducing climate

vulnerability

The MDB’s investments in the FI will focus on the sustainable tranche of projects, including

desalination plants within its pipeline

. These plants are located in a group of three highly water-

stressed countries and provide an essential service to residents within the catchment of each

plant. Independent third-party opinion has veriﬁed that these plants will contribute to enhancing

the resilience of vulnerable communities in the three target economies, and are themselves

designed and constructed with due consideration of physical climate risks and are able to deliver

services as expected under a changing climate.

Type of ﬁnancial

instrument

Capital markets through the FI

Estimation of

total adaptation

ﬁnance (amount

and percentage)

The total adaptation ﬁnance is $31.5 million representing 39% of MDB investment in the project,

based on a proportional approach.

Table C.2.4. Case study #4 of tracking adaptation ﬁnance in projects

Project Youth Adaptation Solutions Challenge

Sector(s) Multi-sector (Agriculture; Waste Management; Water Supply and Sanitation; Renewable Energy;

Soil and Water Management)

Brief description

of project

• The challenge is an annual competition that invites young entrepreneurs and micro, small,

and medium enterprises from the region (50% women-led enterprises) to submit innovative

solutions and businesses that are driving climate change adaptation and resilience action and

have potential for scale-up.

• This project aims to inspire and support the commercialisation and scaling of climate change

adaptation solutions, driven by youth entrepreneurs. The challenge is open to solutions

(products, services, tools) targeted at climate change adaptation and resilience across climate-

sensitive sectors.

• The goal of the programme is to support youth-led enterprises operating in climate adaptation

and resilience sectors with a $100 000 capitalisation grant per enterprise and a 12-month

accelerator programme along with mentorship and networking opportunities. The eligible

enterprises are 2+ years in operation and viable businesses, legally registered and operating

in the region, youth-led (aged between 18-35) and must be delivering climate adaptation or

resilience solutions addressing real-life challenges.

Climate

vulnerability

context

• Young people in the project region are at the frontier of the climate emergency and experiencing

climate risks first-hand. Today’s climate actions will directly affect their lives. Climate and

environmental hazards affecting young people in the region include flooding, heatwaves,

drought, cyclones, water scarcity and high levels of pollution. The 2022 IPCC report provides

evidence that the youth of today will experience extreme weather events spiralling out of control

in the future, affecting their quality of life, as well as their health, well-being, and security. The

report further ﬂags the insufﬁciency of current levels of adaptation.

• Many youths are growing up in parts of the world where the impacts of climate change will hit

hardest. With an urgent drive to act to avoid disastrous climate change, an increasing number

of young people are leading climate adaptation efforts in their communities and regions. Young

climate entrepreneurs have developed many innovative adaptation solutions to bring real and

concrete change achieving triple dividends — generating income for themselves, creating jobs,

and solving climate challenges at the grassroots.

Statement of

purpose or intent

to reduce climate

vulnerability

• The overarching objective of the Youth Challenge is to promote job creation through social

entrepreneurship and innovation for action on climate adaptation and resilience in the region.

It aims to prepare a new generation of youth for the transition towards green and climate-

resilient development, as well as to combat poverty and improve the quality of life for youth in

the region.

• The solutions provided by the young entrepreneurs address speciﬁc climate risks identiﬁed in

different regional contexts. Some of the solutions include drought-resistant seedlings that are

helping farmers improve productivity despite harsh climatic conditions; rooftop farming that is

creating more green spaces that contribute to the health of the city ecosystems and artiﬁcial

intelligence-powered irrigation systems that are supporting year-round production to combat

drought, among other solutions.

30 The green loan eligibility criteria further deﬁne the desalination plants to be powered by low-carbon sources.

ANNEX C: methodologies and deﬁnitions |

Project Youth Adaptation Solutions Challenge

Project activities

linked to

reducing climate

vulnerability

• The winning enterprises provide climate adaptation and resilience solutions in critical social

and economic sectors affected by climate change, including agriculture; waste management;

water resources and sanitation; renewable energy and energy efficiency; and ecosystem

restoration.

• Some of the solutions include creating sustainable and climate-resilient aquatic food systems

by leveraging artiﬁcial intelligence; propagating drought-resistant seedlings to address food

insecurity; leveraging tropical insect farming techniques to convert food waste into climate

shock-resistant food alternatives; advancing sustainable and cost-effective industrial cooling

processes that minimise post-harvest losses; installing climate-smart irrigation technology

as alternatives to rain-fed agriculture; tapping into the use of artiﬁcial intelligence analytics

to capture soil health parameters; and accelerating the productive use of climate-smart

agriculture technologies and organic fertilisers among smallholder farmers, among many

others.

Type of ﬁnancial

instrument

Grant

Estimation of

total adaptation

ﬁnance (amount

and percentage)

The total project cost was $4.1 million, and the project is 100% climate adaptation ﬁnance.

ANNEX C.3. JOINT METHODOLOGY FOR TRACKING CLIMATE MITIGATION FINANCE

For MDB ﬁnance to qualify as climate mitigation ﬁnance, the MDBs apply the Common Principles

for Climate Change Mitigation Finance Tracking

to validate their investment as mitigation ﬁnance

(the 2021 update of Mitigation Common Principles was used to track all MDB mitigation ﬁnance

in this report). These common principles have been designed for use in ex-ante assessments

and focus on the type of activity ﬁnanced, and not on its purpose or the origin of the ﬁnancial

resources. The list of eligible activities is presented by sector. Policy actions, technical assistance

and programmes in support of eligible activities are also ﬁt for purpose, provided that the link

to eligible

activities is clear or sufficiently demonstrated

. The results of the assessments are

applied for reporting of the climate change mitigation ﬁnance in the Joint Report on the Multilateral

Development Banks’ Climate Finance.

The common principles recognise that a substantial contribution to climate change mitigation can

involve the follo

wing three categories of climate change mitigation activities:

i. Negative or very low-emission activities, which result in negative, zero or very low GHG

emissions and are fully consistent with the long-term temperature goal of the Paris Agreement,

such as carbon sequestration in land use or some forms of renewable energy.

ii. Transitional activities, which are still part of systems emitting material greenhouse gases but

are important for and contribute to the transition towards a climate-neutral economy, such as

energy efﬁciency improvement in manufacturing that directly or indirectly uses fossil fuels.

iii. Enabling activities, which are instrumental in enabling other activities to make a substantial

contribution to climate change mitigation, such as manufacture of very low-emission

technologies.

On 18 October 2021 the MDBs and IDFC published a new version of the common principles. This

new version of the common principles, including the list of eligible activities, was developed over a

period of two years, taking particularly the following two aspects into account:

i. Consideration of new mitigation activities that are required in order to achieve the structural

changes in the economy pointed out by the IPCC as necessary to achieve the goals of the Paris

Agreement.

ii. Identiﬁcation of activities that, despite reducing GHG emissions in the short term, risk a long-

31 https://www.eib.org/attachments/documents/mdb_idfc_mitigation_common_principles_en.pdf

32 Each eligible activity is understood to include policy actions, technical assistance and programmes carried out in its support, which are not

listed separately. Only policy actions, technical assistance and programmes that cannot be directly linked to eligible activities described

elsewhere are listed separately.

72 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

term lock-in of emissive technologies, thereby undermining the long-term temperature goal of

the Paris Agreement. Such activities cannot be considered as climate mitigation ﬁnance.

The MDBs agreed to operationalise the new version of the common principles starting in 2021 over

a period of two years, during which time the list of eligible activities will be used as an exhaustive list.

At the end of the two-year period, the MDBs and the IDFC will adjust the list, if required, based on

their respective experience. The aim at the end of this two-year operationalisation period is to have a

common list of eligible activities, considered an exhaustive list by both the MDBs and the IDFC.

A major review of the methodology is planned within ﬁve years of the publication of the new version

of the common principles, whilst minor amendments may be made on a more regular basis. These

reviews will account for technology developments that may enable deeper decarbonisation of

economic activities. Thus, the current list includes some activities that may not be eligible in the

future as the transition to an economy with net-zero GHG emissions progresses.

Please see the full list of the common principles and list of eligible activities:

https://www.eib.org/attachments/documents/mdb_idfc_mitigation_common_principles_en.pdf

Table C.3.1. Case study #1 of tracking mitigation ﬁnance in projects

Project focus Production of copper foil (electric vehicle battery parts) from copper scrap contributing to

the electriﬁcation of the European transport sector and the circular economy.

Sector Chemical Manufacturing

Brief description

of project

Construction of a greenﬁeld copper foil manufacturing plant. The copper foil will be produced

entirely from copper scrap and used for production of electric vehicle (EV) battery cathodes in

Europe.

Classiﬁcation

(as per Common

Principles for

Climate Mitigation

Finance Tracking):

(1) Sector

(according to

Tables 2-12 of

the common

principles)

(2) Category

(3) Eligible activity

(1) Manufacturing

(2) Support for low-carbon development

(3) Projects that support the production of components, equipment or infrastructure dedicated

exclusively to utilisation in renewable energy, energy efficiency improvement or other low-

carbon technologies.

Type of ﬁnancial

instrument

Investment loan

Calculation of

mitigation ﬁnance,

including basis (for

example, eligible

components)

The total amount of $28 million provided by the MDB is accounted as climate mitigation ﬁnance.

Mitigation outcomes have been embedded with the following activities:

• Increase in copper foil production contributing to increase of EV battery production and

consequently achieving Scope 3 savings

• Increase in usage of scrap copper contributing to the circular economy of the EV battery sector

Type of mitigation

ﬁnance

(own resources,

co-ﬁnance)

MDB own account

Table C.3.2. Case study #2 of tracking mitigation ﬁnance in projects

Project focus Equity investment to ﬁnance the deployment of cutting-edge electric cargo drones to

provide last-mile delivery services for third parties.

Sector Transpor t

ANNEX C: methodologies and deﬁnitions |

Brief description

of project

There is growing interest in the drone delivery sector globally, with initial targets being delivery

of urgent medical goods, small parcels, groceries and spare parts, particularly in deep rural

locations. The project supports the development, production, deployment, and operation of

electric unmanned aerial vehicles, enabling last-mile delivery services at a competitive cost

while reducing greenhouse gas emissions and air pollution caused by fossil fuel-based means

of transport. The electric cargo drones supported by the equity investment have superior

performance characteristics in terms of speed, range, payload and redundancy.

Classiﬁcation

(as per Common

Principles for

Climate Mitigation

Finance Tracking):

(1) Sector

(according to

Tables 2-12 of

the common

principles)

(2) Category

(3) Eligible activity

Table 11 — Research, development and innovation.

Research on or development of renewable energy, energy efﬁciency improvement, low-carbon

technologies, or other technologies instrumental to achieving full decarbonisation.

Type of ﬁnancial

instrument

Equity investment

Calculation of

mitigation ﬁnance,

including basis (for

example, eligible

components)

The total amount of finance provided by the MDB is accounted as climate mitigation finance,

since the investment is totally devoted to the deployment of cutting-edge electric cargo drones to

provide last-mile delivery services.

Type of mitigation

ﬁnance

(own resources,

co-ﬁnance)

Co-ﬁnance with MDB own account.

74 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Table C.3.3. Case study #3 of tracking mitigation ﬁnance in projects

Project focus National climate policies

Sector Cross-sectoral activities

Brief description

of project

The programme will support the country to implement its national climate policies, including its

Nationally Determined Contribution (NDC), which aims to peak greenhouse gas emissions by 2030,

and scale up climate adaptation, mitigation, and disaster resilience. The programme will increase

and intensify actions to transform key sectors toward a climate-resilient and low-carbon economy.

It focuses on sectors that are of national priority for climate actions, targeting adaptation in highly

vulnerable sectors (agriculture, natural resources, and environment) and mitigation in emissions-

intensive sectors (energy and transport). The programme reform areas are:

Reform Area 1: Strengthening planning, ﬁnancing, and institutional linkages for climate action.

This reform area strengthens institutional and planning linkages at the national level and between

national and local levels, and enhances the enabling framework for public and private climate

ﬁnancing. Policy actions are expected to result in more climate action across sectors, driven by

coordinated NDC implementation, increased accountability for climate action in sector agencies

and stronger capacity of local governments. Policy actions on ﬁnance will support the scaling up of

domestic and external climate ﬁnance, and enable actions that support both the conditional and

unconditional commitments of the NDC.

Reform Area 2: Enhancing resilience to climate impacts. This reform area improves climate

resilience in agriculture, natural resources and the environment by focusing on policy actions

which directly address the key objectives, outcomes and activities of the food security and

environmental stability priorities of the National Climate Change Action Plan. The reforms will

contribute to (i) improved resilience of farming and ﬁshing communities through access to climate

services and technologies; (ii) improved climate resilience of agriculture, fisheries, and food

systems; (iii) enhanced ecosystem stability and biodiversity; and (iv) better managed climate risks.

Reform Area 3: Strengthening low-carbon pathways. This reform area seeks to support a just

transition to low-carbon pathways, with cleaner energy and transport services and reduced

reliance on fossil fuels. The reform measures are expected to lead to (i) increased use of renewable

energy and storage and increased energy efﬁciency, (ii) demonstrated commercial application of

new clean energy technologies, and (iii) improved access to public transportation and electric

vehicles across the country.

The programme constitutes the ﬁrst dedicated climate change policy-based loan undertaken by

the MDB and addresses climate change as its core objective.

Classiﬁcation

(as per Common

Principles for

Climate Mitigation

Finance Tracking):

(1) Sector

(according to

Tables 2-12 of

the common

principles)

(2) Category

(3) Eligible activity

MITIGATION

Sector: Cross-sectoral activities

Category: Policy support and technical assistance for climate change mitigation

Eligible activity: National, subnational or territorial cross-sectoral policy actions that aim to lead to

climate change mitigation actions or technical support for such actions

ADAPTATION

Cross-cutting sectors

Type of ﬁnancial

instrument

Policy-based lending

ANNEX C: methodologies and deﬁnitions |

Calculation of

mitigation ﬁnance,

including basis (for

example, eligible

components)

The loan amount was divided equally among the policy actions, all of which address climate

change. The associated amount for policy actions that are considered mitigation actions are

counted as mitigation ﬁnance and those that are adaptation actions are counted as adaptation

ﬁnance. The amount associated with policies that contribute to both climate change mitigation

and climate change adaptation were split equally between adaptation and mitigation ﬁnance.

Reform Area 1, which focuses on cross-cutting planning, ﬁnancing and institutional linkages, has

policy actions related to: (i) ﬁnalisation of the updated NDC which encompasses mitigation and

adaptation; (ii) strengthening of institutional arrangements; and (iii) linkages between national

and local governments to improve climate-related planning. The amount attributed to each policy

action is split equally between climate change adaptation and mitigation ﬁnance.

All policy actions under Reform Area 2 focus on increasing resilience of the agriculture sector,

environment and natural resources. Estimated climate change adaptation ﬁnance is 100% of the

amount attributed to each of the ﬁve policy actions under this reform area.

All of the four policy actions under Reform Area 3 focus on reducing greenhouse gas emissions

and are classiﬁed as climate change mitigation. Estimated climate change mitigation ﬁnance is

100% of the amount attributed to each policy action.

Adaptation ﬁnance: $133.929 million

Mitigation ﬁnance: $116.071 million

Type of mitigation

ﬁnance

(own resources,

co-ﬁnance)

MDB own account

Table C.3.4. Case study #4 of tracking mitigation ﬁnance in projects

Project focus Improving water quality and expanding sewage collection and treatment

Sector Water supply and wastewater

Brief description

of project

The project’s investments focus on improving water quality and expanding sewage collection and

treatment in the poorest and most heavily populated neighbourhoods of the city, as part of the

River Clean-Up Programme. Proceeds will be allocated to projects related to (i) the programme to

clean up the river in the city; (ii) improved sanitation services in coastal regions; and (iii) improved

water supply in municipalities in the coastal region and the outskirts of the city.

The river crosses through the capital city and has its confluence with another river, which

comprises several reservoirs along its course. It is considered one of the most heavily polluted

rivers in the country and has long suffered from anthropogenic pollution caused by non-point

domestic sewage load that is released daily (without any treatment) into the various tributaries.

This results in disruptions to the natural levels of oxygen in the river as explained by the

appearance of algae blooms, a phenomenon that indicates eutrophication of the water body. The

River Clean-up Programme is already ensuring the improvement of oxygenation and reduction of

organic matter by increasing sewer connections to households so that no clandestine sewage

will be dumped into the river, which should increase the amount of oxygen in the water, reduce

anaerobic conditions and reduce GHGs, and monitoring the BOD (biochemical oxygen demand)

values to ensure they drop below the requirements for the water to be odourless, improve its

turbidity and allow aquatic life.

The project has significant human health, environmental and biodiversity benefits in addition

to climate mitigation and adaptation beneﬁts and has been structured as a blue loan. The blue

loan framework reviewed by an external second opinion provider is publicly available with eligible

activities such as water supply investments in the research, consulting, design, development,

and implementation of efﬁcient and clean water supply and water sanitation: investments in the

research, consulting, design, development, and implementation of water treatment solutions and

commitment to publicly report impact from the projects.

76 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Classiﬁcation

(as per Common

Principles for

Climate Mitigation

Finance Tracking :

(1) Sector

(according to

Tables 2-12 of

the common

principles)

(2) Category

(3) Eligible activity

Sector: Water supply and wastewater

Category: Energy and resource efficiency and GHG emission reduction in water supply, and

wastewater management

Eligible activity: Greenfield and brownfield projects that promote improved operation and

maintenance to reduce water losses, promote energy savings, and meet or exceed wastewater

treatment targets

Type of ﬁnancial

instrument

Investment loan of $145 million

Calculation of

mitigation ﬁnance,

including basis (for

example, eligible

components)

Based on the use of proceeds, the overall investment of the corporate loan amounts to $145

million for the ﬁnancing of 13 water supply and sanitation projects. Four projects are part of the

River Clean-Up Programme climate mitigation finance due to their contribution to mitigation

goals, with wastewater treatment connections for 118 000 households to divert untreated

efﬂuent away from the river which should increase the amount of oxygen in the water, reduce

anaerobic conditions and reduce an estimated 4 290 tonnes of CO

eq per year through improving

eutrophication of the water body. Additional emission reductions come from reducing methane

emissions released by the polluted river, but these have not been calculated. The climate ﬁnance

percentage was calculated by dividing the sum of the investments in the four projects qualifying

for mitigation ﬁnance by the total investment. These projects account for $58 million of the total

investment of $145 million, with the climate mitigation ﬁnance percentage of 40% (58/145).

Climate adaptation ﬁnance related to adaptation components (reducing the risk of drought and

water shortages, and increasing water resilience in the considered areas to limit the impact of

climate change) was assessed separately.

Type of mitigation

ﬁnance

(own resources,

co-ﬁnance)

MDB own account

ANNEX C.4. FINANCE THAT BENEFITS BOTH ADAPTATION AND MITIGATION

The MDBs identify some components and/or sub-components, or elements or proportions of

projects, which help to reduce GHG emissions while also reducing climate vulnerability, thereby

delivering dual benefits of mitigation and adaptation. Where the same project, sub-project or

project element contributes to both mitigation and adaptation, the MDB’s internal processes will

determine which proportions to count as mitigation or as adaptation so that the actual ﬁnancing will

not be double counted. Some MDBs report projects where the same components or elements or

proportions contribute to both mitigation and adaptation as a separate category (see Table C.4.1).

The MDBs work continuously to improve work on the best reporting method for such projects.

For 2022, AIIB, EBRD and IDBG have tracked dual-beneﬁt ﬁgures separately, while other MDBs have

split the dual-beneﬁt ﬁnance between adaptation and mitigation, according to their internal systems.

There is no double counting in either approach. Table C.4.2 provides greater detail on the instrument

types used in adaptation, mitigation and dual-beneﬁt ﬁnance.

Table C.4.1. MDB adaptation, mitigation and dual-beneﬁt climate ﬁnance (in $ million)

MDB Adaptation ﬁnance Mitigation ﬁnance Dual-beneﬁt ﬁnance Total

AIIB 327 1 937 127 2 391

EBRD 194 6 451 113 6 758

IDBG 1 666 3 111 2 189 6 966

IsDB 406 315 329 1 050

Total 2 592 11 814 2 759 17 165

Note: Numbers may not add up due to rounding.

ANNEX C: methodologies and deﬁnitions |

Table C.4.2. MDB adaptation, mitigation and dual-beneﬁt climate ﬁnance, by instrument type (in $ million)

Instrument type Adaptation ﬁnance Mitigation ﬁnance Dual-beneﬁt

ﬁnance

Total

Investment loan 15 543 51 784 1 522 68 850

Policy-based ﬁnancing 2 702 5 464 1 077 9 243

Grant 3 548* 2 547* 17 6 113*

Guarantee 421 2 261 56 2 738

Equity 18 1 586 2 1 605

Line of credit 513 5 416 24 5 953

Results-based ﬁnancing 804 1 533 0 2 337

Other 183 2 370 61 2 614

Total 23 733* 72 961* 2 759 99 453*

Note:

1. Numbers may not add up due to rounding.

2. (*) See footnote 1 for Figures 1a and 1b.

Table C.4.3. Case study #1 of tracking a dual-beneﬁt project

Project focus Improve quality of education

Sector Education

Brief description

of project

The objective is to support the transformation of the education system to improve its relevance,

quality, and inclusiveness. The specific objectives are: (i) develop a modernised curriculum

framework to teach students relevant skills; (ii) increase inclusiveness of students with special

needs; (iii) create a positive learning environment by upgrading physical and technological resilient

and sustainable infrastructure; and (iv) improve sector management.

Classiﬁcation:

(1) mitigation and

(2) adaptation

ﬁnance

Mitigation: Buildings, Public Infrastructure and End-Use Energy Efﬁciency

Adaptation: Energy, transport and other built environment infrastructure

Dual: M. Cross-Sectoral Activities A. Other sectors – education

Calculation of

climate ﬁnance,

including the

basis (for

example, eligible

components)

Total: $200 million

• Component 1: Curriculum reform ($4.8 million). Amongst other changes, the new material will

include themes of blue economy, skills for green jobs, and climate change). Of this portion

$2.43 million is related to climate ﬁnance investments.

• Component 2: Inclusive education ($1.2 million). No climate ﬁnance in this component.

• Component 3: Upgrading of physical and digital resilient and sustainable infrastructure

($9.29 million). The objective is to upgrade the physical and digital infrastructure in ten

primary schools to meet sustainable and resilient best practice standards and building code

requirements, including (i) cost-effective measures of energy and water efﬁciency following the

EDGE guidelines. Of this portion $3 million is considered climate ﬁnance.

• Component 4: Improved sector management ($2 million). No climate ﬁnance in this component.

• Additional management fees. ($2.6 million).

Total climate ﬁnance: 27%, of which 12.15% is dual.

Type of ﬁnancial

instrument

Investment loan

Type of ﬁnance

(own account,

co-ﬁnance)

MDB own account

78 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Table C.4.4. Case study #2 of tracking a dual-beneﬁt project

Project focus Upgrading of informal settlements and integrated urban development

Sector Urban

Brief description

of project

The overall development objective of the project is to contribute to a National Zero Slum

Programme and Housing Strategies by improving the livelihood of poor households in informal

settlement neighborhoods through the upgrading of urban infrastructure, access to decent

housing for all, and economic empowerment. The project is aligned with the National Urban

Development Master Plan, which includes provisions to make the city and neighbourhoods

resilient to climate change.

The country is considered one of the most vulnerable to climate change and climate-related

effects, including drought, high temperatures, rising sea levels, ﬂash ﬂoods and salinisation of soil

and water. The informal settlements included in the project are located in the country’s capital city,

close to the coast, where they are particularly exposed to water level rise and ﬂooding. The project

supports the country’s NDC, with components aligned to national mitigation and adaptation goals.

Classiﬁcation:

(1) mitigation and

(2) adaptation

ﬁnance

This project contains components contributing to both mitigation and adaptation ﬁnance.

Calculation of

climate ﬁnance,

including the

basis (for

example, eligible

components)

Total project ﬁnance: $17.84 million. Climate ﬁnance: $2.2 million, or 15%.

Project components contributing to climate ﬁnance include:

• Construction of drainage system to alleviate ﬂooding and water level rise;

• Solar lighting for public areas and green spaces;

• Developing a new master plan for the capital city, with an emphasis on climate resilience; and

• Integrating low-carbon principles (such as energy efﬁciency) into new housing for low-income

households.

Type of ﬁnancial

instrument

Investment loan

Type of ﬁnance

(own account,

co-ﬁnance)

MDB own account $15 million

Government ﬁnance contribution: $2.84 million

Table C.4.5. Case study #3 of tracking a dual-beneﬁt project

Project focus Integrated Rural (Sustainable infrastructure) Development

Sector Rural Development, Agriculture, Water and Sanitation/infrastructure /Energy (RE and EE)

Brief description

of project

The project is located in a double-landlocked country with population growth at a pace of 2%

per annum since 2017. The country is also facing slow economic growth. Poverty incidences

are prevalent in rural areas; around 79% of the poor in 2018 were rural population. Utility

infrastructure in rural areas has exceeded its lifespan. Nearly two-thirds of the rural population

make their living from the agriculture sector, and the climatic condition of the country is causing

the withdrawal of both fresh water and water for irrigation.

The project aims to improve the living standards and prosperity of the rural population with access

to quality and resilient infrastructure, empowering and strengthening the rural communities in the

area of agriculture resilient practices.

Project approach,

components and

sub-component

The project will be implemented using the community-driven development approach (CDD), and all

infrastructure will have climate-resilient aspects and will apply energy-efﬁcient, resources-saving

technologies, sustainability, and disaster risk mitigation mechanisms.

The project consists of the following components and activities ﬁnanced by the MDB:

(1) construction of basic infrastructure ($232 million)

(2) consultancy services for rural infrastructure development: (i) Capacity development for

stakeholders; and (ii) Community development plans (CDP) for stakeholders ($15 million)

ANNEX C: methodologies and deﬁnitions |

Project focus Integrated Rural (Sustainable infrastructure) Development

Classiﬁcation:

(1) mitigation and

(2) adaptation

ﬁnance

Mitigation ﬁnance (positive list of eligible activities)

1. Energy; 1.1. Renewable energy generation.

4. Agriculture, forestry, land use, and ﬁsheries

6. Solid waste management

• Adaptation ﬁnance: Transport built environment and infrastructure. Institutional capacity

support or technical assistance. Other agricultural and ecological resources.

• Climate vulnerability context — desktop climate risk screening, on-site technical

assessment, consultation with local stakeholders.

• The project will contribute directly to achieving SDG 2 Zero Hunger by improving food security

measures and SDG 6 Water and Sanitation.

• Project activities linked to reducing climate vulnerability include:

• Building resilience in rural communities by adopting resilient agricultural practices

• Integrating resilient (and low-carbon) elements in new infrastructure and improvement of old

infrastructure

Calculation of

climate ﬁnance,

including the

basis (for

example, eligible

components)

The climate ﬁnancing of $232 million will cover

• $217 million — Basic rural infrastructure: (i) potable water, (ii) sanitation systems, (iii) social

amenities, (iv) market infrastructure that will facilitate the development of the agricultural value

chain.

• $15 million — Market infrastructure, which includes the use of sustainable building materials,

renewable energy sources (solar), and energy efﬁciency equipment.

• Consultancy services for rural infrastructure development.

Type of ﬁnancial

instrument

Investment loan

Type of ﬁnance

(own account,

co-ﬁnance)

Total project cost: $293.5 million

• MDB own account $260 million

• Counterpart funding $33.5 million

Table C.4.6. Case study #4 of tracking a dual-beneﬁt project

Project focus Water supply and wastewater management

Sector Water

Classiﬁcation:

(1) mitigation and

(2) adaptation

ﬁnance

(1) Mitigation:

Water supply and wastewater

(2) Adaptation:

Water and wastewater systems

80 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

Project focus Water supply and wastewater management

Calculation of

climate ﬁnance,

including the

basis (for

example, eligible

components)

The project contributes to reducing climate vulnerability by improving access to resilient water

and sewage services. The climate co-beneﬁt of the envisaged activities is estimated at 50% of the

project cost.

Climate ﬁnance amount: $124.20 million, 50% of total ﬁnancing from the Bank.

The components of the project are the following:

1) Investment in Water Supply Infrastructure ($160.7 million)

2) Investment in Sewage Infrastructure ($94.3 million)

3) Project Implementation and Management Support ($13.9 million)

This project constitutes the second phase of a greater effort to extend water and sanitation

services to all in the region; this second phase project supports investments to extend and

improve water supply and sewage services to comprehensively cover the remaining districts of the

region.

As for the adaptation considerations, the project will include measures to reduce the pressure on

scarce water resources:

(i) adopt smart metering for production and distribution facilities that allows remote reading with

automatic data transmission, which enables the utility manager to run regular water loss reduction

campaigns;

(ii) adopt mechanical household meters, which in turn will help to promote water savings;

(iii) reduce water losses through the replacement of obsolete water supply networks; and

(iv) include optional tertiary treatment facilities for reuse purposes, which could contribute

additional adaptation beneﬁts.

As for the mitigation considerations, adopting measures to improve energy efﬁciency of the water

supply and sanitation facilities are included in the project (mainly through replacement of pumps

and treatment plants with energy-efficient options and designs), which will also contribute to

reducing greenhouse gas emissions during operation.

At the detailed design stage, the planned water supply and sewage infrastructure will be further

optimised considering climate change mitigation (through energy efﬁciency technical solutions)

and climate change adaptation (such as water loss reduction, consideration of water reuse) and

the climate co-beneﬁt will be conﬁrmed.

Type of ﬁnancial

instrument

Investment loan

Type of ﬁnance

(own account,

co-ﬁnance)

MDB own account

Table C.4.7. Case study #5 of tracking a dual-beneﬁt project

Project focus Introduction of climate smart farming practices

Sector Agriculture

Brief description

of project

The project consists of ﬁnancing the working capital needs of a commodity trader, to support

procurement activities including pre-financing of olive farmers, capacity increase and

modernisation of the processing plants, biomass combined heat and power (CHP) investments

and other small capex investments. The project will introduce modern sustainable and climate

smart farming practices to improve climate resilience and reduce environmental impact (GHG

emissions, fertiliser and pesticides) from farming activities and supports the uptake of renewable

energy technologies.

Classiﬁcation:

(1) mitigation and

(2) adaptation

ﬁnance

(1) Mitigation: Energy — Solar-powered electricity generation

(2) Adaptation: Crop and food production — Primary agriculture and food production

ANNEX C: methodologies and deﬁnitions |

Project focus Introduction of climate smart farming practices

Calculation of

climate ﬁnance,

including the

basis (for

example, eligible

components)

MDB provided a senior loan in the amount of $50 million.

Mitigation: The investment of $6.1 million (13% of the total investment amount) will be provided to

ﬁnance installation of a photovoltaic system and a new biomass CHP facility

Adaptation: The investment of $3.2 (7% of the total investment amount) towards procurement

of olives in the country will contribute to enhancing climate change resilience of the olive supply

chain. As part of this transaction, the company will develop and implement a supply chain

engagement programme and associated monitoring, reporting and veriﬁcation (MRV) system to

support farmers in the adoption of climate smart farming practices that will improve the resilience

of their production to climate change. Climate change impact on olive production in the country

will be analysed, including olive quantity and quality, water availability and quality, the presence

of pests, diseases and pollination. Climate smart practices will be identiﬁed and, in conjunction

with the olive farming training academy established as part of the transaction, the company and

its suppliers will be provided with know-how on climate change resilient and low environmental

impact agricultural practices and tools to better assess and monitor resource efficiency and

environmental performance of production.

Type of ﬁnancial

instrument

Investment loan

Type of ﬁnance

(own account,

co-ﬁnance)

MDB own account

ANNEX C.5. TYPES OF INSTRUMENTS

The types of financial instrument containing climate finance as reported for 2022 include the

following:

a) Advisory services: MDB advisory services include advising national and local governments

as well as private sector players on a variety of topics, for instance how to improve their

investment climate and strengthen basic infrastructure. The MDB tracks and reports the costs

of managing advisory programmes, which may consist of staff time, studies, and training with

clients. Similar to investments, some programmes are 100% climate-related and some have a

climate component tracked in the overall programme budget.

b) Equity: Ownership interest in an enterprise that represents a claim on the assets of the entity

in proportion to the number and class of shares owned.

c) Grants: Transfers made in cash, goods or services for which no repayment is required. Grants

are provided for investment support, policy-based support and/or technical assistance and

advice.

d) Bond: A type of bond, the issuance of which is done by a client and supported by an MDB,

where the proceeds are applied exclusively to ﬁnancing or reﬁnancing, in part or in full, new

and/or existing climate projects.

Only the percentage of proceeds that are used for activities included in the joint MDB

methodology for tracking climate ﬁnance count as climate ﬁnance.

e) Guarantees: Guarantees are instruments provided by an MDB to cover commercial and non-

commercial risk.

Guarantees support private sector investments, commercial borrowing by sovereign or state-

owned enterprises, and/or commercial borrowing by the sovereign for budget ﬁnancing and

to support reform programmes. Guarantees are extended for eligible projects that enable

ﬁnancing partners to transfer certain risks that they cannot easily absorb or manage on their

own. Guarantees cover equity and a wide variety of debt instruments and support ﬁnancial

sector projects (including those of capital market investments and trade ﬁnanciers and non-

ﬁnancial-sector business activities corresponding to activities across sectors).

82 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

f) Investment loans: Loans are transfers for which repayment is required.

Investment loans can be used for any development activity that has the overall objective of

promoting sustainable social and/or economic development, in line with the MDBs’ mandates.

Proceeds used for activities included in the joint MDB methodology for tracking climate ﬁnance

count as climate ﬁnance.

Reﬁnancing: Reﬁnancing is the replacement of an existing debt obligation with another debt

obligation under different terms.

Reﬁnancing can be classiﬁed as climate ﬁnance subject to the following terms:

• Reﬁnancing of assets that have reached ﬁnancial closure for the entire term of the project

or that have passed the break-even point, provided that the client commits to originating

new climate deals for that amount within the next 24 months.

• Reﬁnancing of assets where ﬁnancial closure has not yet taken place, or where the project

has not yet been fully constructed and is not yet operational.

• Bringing in additional long-term funds to replace short-term bridge loans or strengthening

the ﬁnancial terms of the climate-related asset through long-term loans with better terms

than those of previous loans (for example, they correct a mismatch of maturity, adjust the

costs of asset construction, reduce exchange rate impact, replace expensive debt, and so

on).

• Reﬁnancing climate ﬁnance projects that have already been constructed or are already

operational but have not passed the break-even point (for example, recently built solar

projects). The break-even conditions are conﬁrmed by the investment team.

Working capital: Working capital is ﬁnance provided for operational expenditures.

Working capital is considered to be climate finance if it leads to, enables or supports the

implementation and operation of activities included in the joint MDB methodology for tracking

climate ﬁnance.

g) Lines of credit: Lines of credit provide a guarantee that funds will be made available but no

ﬁnancial asset exists until funds have been advanced. Climate ﬁnance is the proportion of

the credit line that is committed to activities deﬁned as eligible in the MDBs’ climate ﬁnance

tracking methodologies.

h) Policy-based ﬁnancing (PBF): Financing for a public borrower that helps the borrower to

address actual or anticipated requirements for development ﬁnance of domestic or external

origins.

Policy-based ﬁnancing supports a programme of policy and institutional actions for a particular

theme or sector of national policy. While it does not use the cost estimation approach for

each policy action, disbursements of PBF are conditional on the borrower fulﬁlling its policy

commitments in the lending agreement.

The proportion of this public ﬁnancing that is reported as climate ﬁnance is the same as the

proportion of the climate-related “prior actions” agreed in order to allow the policy-based

ﬁnancing to proceed. For example, if one in three prior actions are climate-related, one-third of

the resulting policy-based ﬁnancing would be counted as climate ﬁnance.

i) Results-based ﬁnancing (RBF): Results-based ﬁnancing directly links the disbursement of

funds to measurable results in a government-owned programme.

RBF aims to increase accountability and incentives for delivering and sustaining results, improve

the effectiveness and efﬁciency of government-owned sector programmes, promote institutional

development and enhance the effectiveness of development. Proceeds used for activities

included in the joint MDB methodology for tracking climate ﬁnance count as climate ﬁnance.

ANNEX C: methodologies and deﬁnitions |

ANNEX C.6. POST-2020 TARGETS RELATED TO THE JOINT MDB CLIMATE FINANCE

TRACKING METHODOLOGY

MDB Post-2020 targets related to the joint MDB climate ﬁnance tracking methodology

AfDB Climate ﬁnance will be 40% of the total annual approvals, out of which at least 50% is adaptation ﬁnance

(Climate Change Action Plan (2020-2025))

Doubling of climate ﬁnance to $25 billion for the period 2020-25, giving priority to adaptation ﬁnance.

Source: The African Development Bank pledges $25 billion to climate ﬁnance for 2020-2025, doubling its commitments

ADB By 2030, at least 75% of the number of its committed operations (on a three-year rolling average,

including sovereign and non-sovereign operations) will be supporting climate change mitigation and

adaptation. Climate ﬁnance from the ADB’s own resources will reach $80 billion for the period 2019–30.

In 2021, ADB elevated its climate ﬁnance ambition to reach $100 billion, up by $20 billion, by 2030.

Sources: Strategy 2030: Achieving a Prosperous, Inclusive, Resilient, and Sustainable Asia and the Paciﬁc

News Release: ADB Raises 2019–2030 Climate Finance Ambition to $100 Billion

Medium-term targets: 65% of the number of operations (on a three-year rolling average) and $35 billion

for the period 2019-24.

Source: ADB Corporate Results Framework, 2019–2024: Policy Paper

AIIB Reﬂecting its commitment to support the Paris Agreement, AIIB will aim to reach or surpass by 2025

a 50% share of climate finance in its actual financing approvals. The bank currently estimates its

cumulative climate ﬁnance approvals to be $50 billion by 2030.

Source:

AIIB Corporate Strategy: Financing Infrastructure for Tomorrow,

AIIB to Fully Align with Paris Agreement Goals by Mid-2023, Currently projects USD50 billion investment for climate

ﬁnance by 2030

EBRD

Green ﬁnance is to account for more than 50% of total annual EBRD investment by 2025.

The EBRD’s Green Economy Transition (GET) approach for the period 2021-25 is helping economies

where the EBRD operates to build green, low-carbon and resilient economies. The new approach sets

a green finance target of 50% of all EBRD’s Annual Bank Investment by 2025. This green finance is

composed of climate ﬁnance for both mitigation and adaptation as well as ﬁnance addressing other

environmental objectives. The EBRD does not have separate targets for climate action. Nevertheless, it

expects that the bulk of the ﬁnance will be classiﬁed as climate ﬁnance under the joint MDB approach,

in line with the EBRD’s current investment focus. For the previous period, 2016-20, cumulative climate

ﬁnance accounted for approximately 95% of the reported green ﬁnance.

Source: https://www.ebrd.com/what-we-do/get.html

EIB The EIB will gradually increase the share of its ﬁnancing dedicated to climate action and environmental

sustainability to exceed 50% of its operations in 2025.

From 2021, the EIB will deliver against a target that comprises both climate ﬁnance and environmental

sustainability ﬁnance. Based on 2021 and 2022 data, climate ﬁnance comprises approximately 95% of

the volume reported against the target. Additionally, under our Adaptation Plan, adaptation ﬁnance is set

to increase to 15% of climate ﬁnance by 2025.

Sources:

The EIB Group Climate Bank Roadmap 2021-2025

The EIB Climate Adaptation Plan: Supporting the EU Adaptation Strategy to build resilience to climate change

IDBG Climate ﬁnance in IDB Group operations (of climate ﬁnance approvals as a percentage of all ﬁnancing

commitments for 2020-23) is ≥30 % (annual ﬂoor). Note: IDB Invest reports at the level of closings (not

approvals).

Source: https://crf.iadb.org/en

IsDB The IsDB is committed to a climate ﬁnance target of 35% of total ﬁnancial commitments by 2025.

This 35% climate finance target excludes operations of IsDB Group members including the Islamic

Corporation for the Development of the Private Sector (ICD), the International Islamic Trade Finance

Corporation (ITFC) and the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).

Source: IsDB 2020-2025 Climate Action Plan

NDB The NDB aims to direct 40% of total approvals to projects contributing to climate change mitigation and

adaptation, including energy transition, over the period 2022-2026.

Source: https://www.ndb.int/wp-content/uploads/2022/07/NDB_StrategyDocument_eVersion_07.pdf

WBG The WBG announced a target for an average of 35% of its ﬁnancing to be climate ﬁnance over the period

2021-25. Some 50% of IBRD and IDA climate ﬁnancing will support adaptation and resilience.

The 35% target is a signiﬁcant increase from the 26% achieved on average over the period 2016-20 and

an even larger increase in dollar terms as the World Bank Group’s total ﬁnancing has also expanded.

Source: https://openknowledge.worldbank.org/handle/10986/35799

84 | 2022 JOINT REPORT ON MULTILATERAL DEVELOPMENT BANKS’ CLIMATE FINANCE

European Investment Bank

98 -100, boulevard Konrad Adenauer

L-2950 Luxembourg

+352 4379-22000