Multilateral lenders hit record Sh13.3 trillion in climate finance for developing nations

Climate-related funding has more than doubled over the past five years. (Photo: Freepik)

By Alfred Onyango
Wednesday, July 22, 2026

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Notably, MDBs also mobilised $35 billion (Sh4.5 trillion) in private finance for climate-related investments in these economies.

The African Development Bank (AfDB), for instance, revealed that 54 per cent of its total project approvals in 2025, equivalent to $5.93 billion (Sh767.4 billion), qualified as climate finance.

Adaptation accounted for approximately 58 per cent of the bank’s climate finance.

The bank also surpassed its 2020–2025 commitment to mobilise $25 billion (Sh3.2 trillion) in climate finance, reaching approximately $25.5 billion (Sh3.3 trillion).

“Development and climate action are inseparable for Africa. Scaling climate finance is essential to helping African countries strengthen resilience and accelerating the transition to low-carbon economies in a just and inclusive manner are two of the best ways we can unlock opportunities for sustainable and inclusive growth,” said Anthony Nyong, Director for Climate Change and Green Growth at the AfDB.

“As climate impacts intensify, multilateral development banks have a critical role to play in mobilising the finance and partnerships needed to support Africa's development ambitions.”

At COP29, MDBs projected that by 2030 they would provide $120 billion (Sh15.5 trillion) annually in climate finance to low- and middle-income countries, including $42 billion (Sh5.4 trillion) for adaptation, while mobilising an additional $65 billion (Sh8.4 trillion) annually from the private sector.

The banks have also begun improving transparency through the MDB Climate Finance Dashboard, launched in April 2026 to provide more detailed and accessible climate finance data.