Multilateral development banks (MDBs) provided almost $27-billion in global financing in 2012 to address the challenges of climate change, with the African Development Bank (AfDB) mobilising $1.7-billion of climate mitigation finance – more than any other development institution on the continent, a report has revealed.

The second joint MDB report on climate finance, which was released on Monday,
analysed the financial commitments made by the institutions to support climate change mitigation and adaptation, in line with a commitment by the organisations to enhance the transparency of their investments in climate change mitigation and adaptation.

It found that, of the $27-billion in climate finance, 78%, or over $21-billion, was dedicated to mitigation, while 22%, or nearly $6-billion, was applied to adaptation measures.

Of the total commitments, 8% or $2 billion, came from external resources, such as bilateral or multilateral donors, including the Global Environment Facility and the Climate Investment Funds.

In terms of regional coverage, at 31% of total adaptation finance and 8% of total mitigation finance – or $1.8 billion under each – sub-Saharan Africa received almost equal amounts of adaptation and mitigation finance.

The $1.7-billion of climate mitigation finance awarded by the AfDB in 2012 would largely go toward tackling the infrastructural deficit on the continent, primarily in the energy sector.

“The bank is responding to the need of African nations to diversify their energy sources and increase the level of energy security across the continent by prioritising investments in clean and renewable-energy sources,” the AfDB said in a statement.

Regarding adaptation finance, the bank had established itself as the leading provider of climate adaptation finance on the African continent, where, for every dollar of external financing mobilised, it had also contributed over six dollars of its own resources.

Between 2011 and 2012, the AfDB increased its climate finance levels by 50% and, while climate finance represented 20% of the banks’ total lending in 2011, it represented roughly 34% of its total lending in 2012.

Commenting on the AfDB’s commitments in climate change as reflected in the climate finance levels, Energy, Environment and Climate Change Department chief climate change specialist Mafalda Duarte said the bank was proud of its increasing contribution toward development that was embedded with climate action.

“This is a record we hope to improve upon to better serve African countries and to further cement our position as the premiere African development institution,” she said.