The Islamic Development Bank reported that multilateral development banks (MDBs) provided USD 103 billion in climate finance to low- and middle-income economies in 2025, up 21% from the previous year. The update also outlined a partnership being presented at COP31 to expand investment in adaptation and resilience.
The 2025 financing included USD 35 billion for adaptation. MDBs also mobilized an additional USD 35 billion in private climate finance for these economies. These figures compare with collective estimates announced at COP29 of delivering USD 120 billion annually in climate finance to low- and middle-income economies by 2030 and mobilizing a further USD 65 billion in private capital.
The MDB Partnership for Adaptation and Resilience Investment aims to expand MDB investment and mobilize more public and private finance in response to client demand. Adaptation, resilience and disaster preparation are priorities for further support. Alongside this initiative, the Joint MDB Long-Term Strategies Program is moving into implementation in more than 30 countries. In several countries, MDBs are coordinating support to translate climate plans and strategies into investment pipelines and financing.