Development banks’ climate pledges hit record, but World Bank pullback looms

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🗞️ Driving the news: Multilateral development banks committed a record $162.5 billion in climate finance in 2025, according to a report by the European Investment Bank
• However, concerns are growing that future funding for developing countries could be affected after the World Bank stepped back from a key climate financing target

🔭 The context: The world’s largest development banks are working toward climate finance commitments made at COP29, including providing at least $120 billion annually to low- and middle-income countries by 2030
• Last year, nearly $103 billion of total climate funding went to developing economies, with the World Bank accounting for almost half of that amount

🌍 Why it matters for the planet: Climate finance enables countries to accelerate renewable energy deployment, reduce emissions and adapt to rising climate impacts
• Maintaining and scaling these investments is critical for vulnerable economies facing increasing risks from extreme weather, sea-level rise and ecosystem degradation

⏭️ What’s next: Development banks may face pressure to maintain momentum ahead of COP31, where climate finance for developing countries will remain a central issue
• Meeting future targets will likely depend on continued public funding, private capital mobilisation and stronger cooperation among international lenders

💬 One quote: “These results show that multilateral development banks are delivering at scale and accelerating support where it is most needed.” – Ambroise Fayolle, Vice-President of the European Investment Bank

📈 One stat: $162.5 billion in climate finance was committed by major development banks in 2025, the highest level recorded

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