ANTALYA, Turkey - Multilateral development banks increased climate financing for low- and middle-income countries by 21% in 2025 to a record $103 billion, moving closer to a funding target announced at COP29 in Baku.
The new figures were released in a joint statement by the banks ahead of COP31 in Antalya. At COP29, they projected that annual climate financing for low- and middle-income countries would reach $120 billion by 2030.
Of the money provided in 2025, $35 billion went to climate adaptation and $68 billion to emissions reduction and other mitigation projects. The banks also mobilized an additional $35 billion in private capital.
Progress Toward the Baku Target
The COP29 projection called for the development banks to provide $120 billion annually by 2030, including $42 billion for adaptation, while mobilizing another $65 billion in private investment.
Combined climate financing by multilateral development banks across all countries where they operate reached a record $163 billion in 2025.
In their COP31 statement, the banks said they are shifting from agreeing on targets to implementation. They are helping more than 30 countries convert long-term climate strategies into specific investment projects.
The institutions are also working to simplify access to financing for small island states, countries facing heightened risks and territories affected by conflict.
Source: Vesti Baku.