BUSINESS
Climate finance for developing economies reaches $60.7B — ADB
Of the total amount of climate finance in 2022, $38 billion or 63 percent was dedicated to climate change mitigation projects, while the remaining $22.7 billion was used for climate change adaptation projects.
Multilateral development banks or MDBs provided a record-high $60.7 billion financial aid to low-income and middle-income economies last year to carry out their climate change projects, the Asian Development Bank or ADB reported Friday.
ADB said this amount was higher by 46 percent than the $41.5 billion recorded in 2019.
Of the total amount for last year, $38 billion or 63 percent was dedicated to climate change mitigation projects, while the remaining $22.7 billion was used for climate change adaptation projects.
"It is encouraging to see the growth in MDB climate finance for low- and middle-income economies, particularly the rise in the amount of private sector finance mobilized. But we need to do more," ADB Climate Envoy Warren Evans said.
EIB data
The ADB shared the following data from the 2022 Joint Report on Multilateral Development Banks' Climate Finance published by the European Investment Bank.
The Sub-Saharan Africa region received the largest aid worth $16.3 billion.
It was followed by Latin America and the Caribbean region with $12.7 billion, and East and the Pacific with $9.8 billion.
Data for the climate finance report were collected from ten MDBs: ADB, EIB, African Development Bank, Asian Infrastructure Investment Bank, Council of Europe Development Bank, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank Group, Islamic Development Bank, New Development Bank and World Bank.
For two consecutive years, ADB said the MDBs were able to surpass their goal to distribute $50 billion climate finance to low-income and middle-income economies by 2025.
Financial aid to developing countries
The MDBs committed in 2019 at the United Nations Secretary General's Climate Action Summit to deliver financial aid to developing countries to help them mitigate and cope with the effects of climate change .
The Intergovernmental Panel on Climate Change or IPCC said Southeast Asia alone could lose over $97 billion within a decade due to extreme drought, flooding and wildfires caused by high carbon emissions.
If these emissions continue to increase, the IPCC warned that 75 percent of Filipino farmers could see lower agricultural production by 15 percent to 20 percent by 2050.