BAKU: A group of leading multilateral development banks (MDBs) today 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 USD $120 billion by 2030, including USD $42 billion for adaptation. The MDBs also aim to mobilise USD $65 billion annually from the private sector. For high-income countries, this annual collective climate financing is projected to reach USD $50 billion, including USD $7 billion for adaption, and the MDBs aim to mobilise USD $65 billion from the private sector.

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).

Sweden also pledged approximately $19 million to the Fund for responding to Loss and Damage. This brings the total pledged funding to more than $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.