MDBs' climate leadership

Multilateral Development Banks (MDBs) have the potential to be key leaders of the global transition to a climate-safe world. They play a critical role in climate finance by providing and mobilising funds for climate mitigation and adaptation, including to meet global targets such as the New Collective Quantified Goal, agreed at COP29. Much progress has been made to increase the climate and environmental credentials of MDBs, but there is much to be done in to increase their contribution to the climate transition and safeguard the progress that has been made to align MDB portfolios with the Paris Agreement. The project brings together key shareholders of the largest MDBs to optimise the role of development finance in accelerating the transition and creating the right political conditions for effective leadership on climate change issues. The project also seeks to raise awareness of the role that MDBs play with civil society, academics, and other stakeholders in Germany and beyond.

Project data

IKI funding
2,212,098.00 €
Duration
12/2020 till 12/2027
Status
open
Implementing organisation
Third Generation Environmentalism Ltd (E3G)
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State of implementation/results

  • State of implementation/results
    • The project works with governments and CSOs on improving countries’ access to climate finance through MDBs, including through public as well as bilateral deliberations on climate finance architecture reforms as well as the creation of country platforms to more effectively channel funding to country priorities. Within this project, E3G brings together progressive contributor countries aiming to improve the governance and overall climate finance effectiveness of MDBs. Representatives from Ministries of Foreign Affairs, Finance, Climate and Environment meet on a regular base under Chatham House rules.
    • E3G also undertakes outreach to countries in the Global South to build collaborative approaches to enhancing climate outcomes, with a special focus on access to adaptation finance for LDCs and SIDS as well as accelerating coal phase out in Asia.
    • In June 2025, E3G published the report "Getting on the path to $1.3 trillion. Steps for scaling climate finance to developing countries", which looks into the challenges and opportunities of mobilising climate finance into developing countries and sets out the long-term vision for reaching the 2035 goal and provides recommendations for what can be achieved in the next years.
    • The "E3G Public Bank Climate Tracker Matrix" is kept under continual review. It covers both Multilateral Development Banks and Development Finance Institutions to reflect major changes that have been made in these institutions.

Latest Update:
04/2026

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