MDBs Increase Climate Finance to $163B, Equity Concerns Remain

Multilateral development banks (MDBs) increased climate finance by 19 percent to a record US$163 billion in 2025, with almost US$103 billion going to low and middle-income countries. The European Investment Bank reported the rise, noting increased support for adaptation measures in poorer nations, which reached US$35 billion. The World Bank led funding with approximately US$49.9 billion directed toward developing economies.

However, advocates at organizations like Oxfam International question whether this increased funding is effectively reaching the communities most vulnerable to climate change. They argue the current MDB model prioritizes private investment in commercially viable projects over grant-based funding needed for adaptation, resilience, and a just transition.

This increase comes after the World Bank abandoned its target of allocating 45 percent of its lending to climate-related projects, raising concerns that overall ambition among MDBs may decline and jeopardize the goal of providing US$120 billion annually by 2030.