Green investment rises as lenders pump Sh18 trillion into climate finance
The increase comes at a time when governments are under mounting pressure to accelerate the transition to low-carbon economies.
Multilateral development banks (MDBs) disbursed a record $137 billion (Sh17.7 trillion) in global climate finance in 2024, marking a 10 per cent rise from the previous year.
The European Investment Bank (EIB), which published the figures, notes that the increase underscores a stronger global push towards climate action.
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The increase comes at a time when governments are under mounting pressure to accelerate the transition to low-carbon economies.
Notably, the annual report reveals that the majority of this funding flowed to low- and middle-income economies such as Kenya.
They received $85.1 billion (Sh10.99 trillion), a 14 per cent increase compared to the previous year.
The data further shows that climate-related funding directed to these economies has more than doubled over the past five years.
Out of the total financing, $58.8 billion (Sh7.6 trillion), or 69 per cent, was channelled towards climate change mitigation projects, including investments in renewable energy, energy efficiency and sustainable transport.
Meanwhile, $26.3 billion (Sh3.4 trillion), or 31 per cent, supported adaptation initiatives, such as strengthening infrastructure and systems to withstand the impacts of climate change.
In addition, MDBs were able to mobilise $33 billion (Sh4.3 trillion) in private finance for climate-related investments towards the low-and middle-income states.
On the other hand, high-income economies received $51.5 billion (Sh6.7 trillion) in MDB climate finance.
Out of this, $46.5 billion (Sh6 trillion) (90 per cent) supported climate change mitigation, with $5 billion (Sh646.2 billion) (10 per cent) addressed adaptation.
Private finance mobilised for climate investments to these nations reached $101 billion (Sh13.1 trillion).
In total, the MDBs mobilised $134 billion (Sh17.3 trillion) in private finance for climate action in the year under review, a 33 per cent increase from the preceding year.
Expanding climate finance will be a central theme at COP30, which is scheduled to take place in Belém, Brazil, in November 2025.
At the COP29 summit, held late last year in Baku, countries agreed to scale up support for developing countries to at least $1.3 trillion (Sh168 trillion) annually from public and private sources by 2035.
With a key focus on Africa, African Development Bank (AfDB) Director for Climate Change and Green Growth, Anthony Nyong, highlighted that the continent is pushing the pedal on actions that transform its green potential in energy, nature-based solutions, innovation and a vibrant workforce.
We are putting climate adaptation at the heart of this effort,” Nyong said.
“At AfDB, we are walking the talk, we continuously meet our climate finance annual target, and over half of our climate finance goes to helping African countries build resilience, protect livelihoods, and secure a climate-resilient future, while still investing in a greener future.”
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