A group of leading multilateral development banks (MDBs) have shared an estimate of their annual collective financing for low- and middle-income countries to conclude the first day of the World Leaders Climate Action Summit at COP29 in Baku, Azerbaijan.

For low- and middle-income countries, the annual collective climate financing contributions from the group of MDBs is set to cumulatively reach US$120 billion by 2030, including US$42 billion for adaptation.

The MDBs also aim to mobilise US$65 billion annually from the private sector. For high-income countries, this annual collective climate financing is projected to reach US$50 billion, including US$7 billion for adaption, and the MDBs aim to mobilise USD $65 billion from the private sector.

The estimates encompass lenders including the Asian Development Bank (ADB), the World Bank Group, the African Development Bank (AfDB), the Asian Infrastructure Investment Bank (AIIB), the Council of Europe Development Bank (CEB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the Inter-American Development Bank Group (IDB), the Islamic Development Bank (IsDB) and New Development Bank.

MDBs have exceeded their 2025 climate finance projections set in 2019, with a 25% increase in direct climate finance and mobilisation for climate efforts doubling over the past year.

The estimates were presented during a high-level meeting in Baku hosted by COP29 President Mukhtar Babayev. He was joined by Heads of States and Governments as well as senior executives from the lenders and other major financial organisations, including the International Monetary Fund (IMF).

One of the key pillars of the COP29 Presidency’s plan – enabling action – involves putting in place the financing necessary to support urgent climate action.

Commenting on the estimates, the COP29 President Mukhtar Babayev said: “Every contribution is welcome, but there is still a clear gap between where we are and where we need to be. We are working closely with the shareholders of international financial institutions at COP29 as we seek to build the foundations of a fair and ambitious new climate finance goal." 

He continued: “We must deliver what the world expects, including climate financing that is several multiples beyond existing arrangements, adequate to the scale and urgency of the problem.

"As a Presidency, we are committed to ensuring that Party and non-Party stakeholders have spaces available to discuss and progress such means of implementation.”

Fully Operationalising the Fund for responding to Loss and Damage

Throughout the year, the COP29 Presidency has been supporting the full operationalisation of the Fund for responding to Loss and Damage so that it can begin disbursing much needed and long-awaited funds as soon as possible.

The Fund is now ready to accept contributions after the signing of key documents.

A ceremony on the second day of COP29 in Baku celebrated the signing of the Trustee Agreement and the Secretariat Hosting Agreement between the Board of the Fund for responding to Loss and Damage and the World Bank, as well as the Host Country Agreement between the Fund Board and the Fund Board’s host country, the Republic of the Philippines.

With this important milestone reached, the Fund is now expected to start financing projects in 2025.

At the event, Sweden also pledged approximately US$19 million to the Fund, subject to government approval. This brings the total pledged funding to more than US$720 million.

The COP29 Presidency thanked Sweden for answering the call to action and continues to urge further pledges to the Fund to better meet the needs of communities on the frontlines of climate change. 

The COP29 Presidency also launched today a new high-level annual dialogue on coordination and complementarity for funding arrangements responding to loss and damage that will bring together stakeholders from within and outside of the UNFCCC process.

World Leaders and Heads of Government address delegates at COP29

The first day of the World Leaders Climate Action Summit began with an address from Ilham Aliyev (President of the Republic of Azerbaijan).

During his speech, President Aliyev said: “As the President of COP29, Azerbaijan will do its best to find common understanding between developed and developing countries, between Global South and Global North." 

Additionally, 80 Heads of States, Governments and Vice-Presidents participated in the World Leaders Climate Action Summit. The Summit, starting on the second day of the two-week COP29 conference in Baku, aims to build consensus and momentum around Azerbaijan’s plan to enhance ambition and enable action and demonstrate to all stakeholders a clear political will to deliver.

Leaders addressed the need to raise ambition for mitigation and adaptation through Nationally Determined Contributions (NDCs), National Adaptation Plans (NAPs), and long-term low-emission development strategies (LT-LEDS), enabling action with the New Collective Quantified Goal on Climate (NCQG), and other means of implementation and support.

Other prominent leaders to deliver speeches included António Guterres (Secretary-General of the United Nations), Maimunah Mohd Sharif (Executive Director of the United Nations Human Settlements Programme), Recep Tayyip Erdoğan (President of Türkiye), Ms. Hilda Heine (President of Marshall Islands), Ms. Mia Amor Mottley (Prime Minister of Barbados), Nana Addo Dankwa Akufo-Addo (President of Ghana), Mr. Andrzej Duda (President of Poland), Mr. Aleksandr Lukashenko (President of Belarus), Mr. Charles Michel (President of the European Council), Sir Keir Starmer, (Prime Minister of the United Kingdom of Great Britain and Northern Ireland), Mr. Viktor Orbán (Prime Minister of Hungary) and Mr. Aleksandar Vučić (President of Serbia).