At COP29 in Azerbaijan, major development banks, including the World Bank, committed to increasing climate finance to $120 billion annually by 2030, marking a 60% rise from 2023 levels. The initiative targets low- and middle-income countries to help them address climate challenges. Irish Climate Minister Eamon Ryan commented, “It’s very helpful. But that on its own won’t be enough,” stressing the need for further contributions from nations and private enterprises.

The pledge also focuses on mobilizing private-sector support, with an additional $65 billion anticipated from private investment. World Bank President Ajay Banga highlighted this reliance, noting that “trillions of dollars would have to come from the private sector.” He anticipates surpassing the target, recognizing private funding as vital to scaling climate solutions.

A significant component of this pledge is the allocation of $42 billion for climate adaptation, a 70% increase over 2023 levels. Patrick Verkooijen, CEO of the Global Center on Adaptation, described this as “a shot in the arm for the climate finance discussion” while acknowledging the extensive work ahead.

Global political dynamics further emphasize the need for accelerated climate action. Amid shifts in U.S. policy, John Podesta, the U.S. climate envoy, reiterated, “We have a clear choice between a safer, cleaner, fairer future and a dirtier, more dangerous, and more expensive one. We know what to do. Let’s get to work.”

Indigenous leaders called for co-presidency representation at the upcoming COP30 in Brazil, highlighting the need for broader inclusion. Albania’s Prime Minister Edi Rama, reflecting on the slow progress, remarked, “Life goes on with its old habits, and our speeches…change nothing.”

The banks acknowledged the role of shareholders in scaling their efforts, as more resources will be necessary to meet climate finance goals. European Investment Bank President Nadia Calvino emphasized, “We can spend time just discussing issues, but I think it’s better to get on with it and…work as best as possible, together.”

This commitment by development banks reinforces the global focus on climate finance, with MDBs expected to play a central role in the climate finance infrastructure.