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Climate finance

Public flows from bilateral, regional and other channels, as well as multilateral climate funds, increased from $31 billion in 2015 to $36 billion in 2016. MDBs are another important source of public climate finance, with MDB climate flows from developed to developing countries of from $17 billion to $20 billion in 2016, up from $16 billion to $17 billion in 2015.

The 24 national and regional development banks of the International Development Finance Club (IDFC) made $220 billion of climate finance commitments in 2017, an increase of $47 billion over 2016. Many of these investments were made domestically, including by the China Development Bank and Banco Nacional De Desenvolvimento Economico e Social (BNDES) of Brazil, as well as by Kreditanstalt für Wiederaufbau (KFW) in Germany. As IDFC members invest both nationally and across borders, it is difficult to identify the share of flows from developed to developing countries.

The UNFCCC Standing Committee on Finance finds that 24 per cent of bilateral climate flows went to LDCs and 2 per cent went to SIDS. For both country groups, which are among the most vulnerable to the effects of climate change, about half of these flows were allocated to adaptation projects, which can also have a developmental impact. Of the approved financing from multilateral climate funds, 21 per cent went to LDCs and 13 per cent to SIDS, and more than half of this was allocated to adaptation. Fifteen per cent of MDB climate finance went to LDCs and SIDS together, with 41 per cent of that total allocated to adaptation.