Multilateral development banks, including the Asian Infrastructure Investment Bank, increased their collective climate finance to historic levels in 2025, according to the latest figures. Total climate finance provided by these institutions across all countries of operation rose 19 per cent year-on-year to hit a record USD 163 billion. The surge highlights the growing role of international lenders in establishing climate-resilient and sustainable economies globally.
The findings, published today in the 2025 Joint Summary Report on Multilateral Development Banks’ Climate Finance, show that institutions are firmly on track to hit their 2030 targets initially announced during the COP29 UN climate conference in Baku in 2024.
The growth was particularly pronounced in low- and middle-income countries, where funding jumped 21 per cent from the previous year to an all-time high of USD 103 billion, effectively doubling the amount allocated to these regions over the past five years. Within these economies, climate change mitigation projects received the lion’s share of funding at USD 68 billion, whilst adaptation finance continued its rapid ascent to reach USD 35 billion. Furthermore, private-sector co-financing mobilised by the banks in these nations reached USD 35 billion.
In high-income economies, multilateral development bank climate finance reached USD 60 billion in 2025, meeting or exceeding its 2030 projections five years ahead of schedule. This funding supported USD 53 billion in mitigation efforts and USD 7 billion in adaptation investments, whilst successfully mobilising an additional USD 80 billion in private finance.
The strong performance positions the lenders well against their collective 2030 goal to deliver USD 120 billion annually to low- and middle-income nations—including USD 42 billion for adaptation—and to draw in USD 65 billion each year from the private sector. The banks reaffirmed their unified systemic commitment to climate-smart development initiatives at the subsequent COP30 summit in Belém.
To complement the report, the banks are leveraging digital technology to enhance data visibility. A pilot version of the new MDB Climate Finance Dashboard, launched in April 2026, offers stakeholders granular breakdowns, harmonised methodologies, and interactive data visualisations to improve the transparency and usability of climate funding metrics.
The compilation and publication of the 2025 data was coordinated by the European Investment Bank with assistance from the European Bank for Reconstruction and Development. The joint initiative aggregates the climate lending metrics of ten major global institutions, including the African Development Bank, the Asian Development Bank, the AIIB, the Council of Europe Development Bank, the EBRD, the EIB, the Inter-American Development Bank Group, the Islamic Development Bank, the New Development Bank, and the World Bank Group.
