"Middle-income countries face traps and shocks that justify continued MDB lending"

"See footnote 1 for Figures 1a and 1b. Table 9 shows a breakdown by type of recipient or borrower. Table 9. MDB adaptation finance by MDB and by type of recipient or borrower in low- and middle-income economies, 2022 (in $ million) MDB Private Public AfDB 261 2 015 ADB 89 2 740 AIIB 5 418 CEB - 211 EBRD 145 155 EIB 211 220 IDBG 118 1 927 IsDB - 571 NDB - - WBG 128 13 512 Total 956 21 762* (*) See footnote 1 for Figures 1a and 1b. Table 10 breaks down MDB adaptation finance by type of instrument. The multilateral development banks reported that the majority (62%) of adaptation finance for low- and middle-income economies was committed through investment loans, followed by grants (16%) and policy-based financing (13%). Table 10. MDB adaptation finance by MDB and by type of instrument in low- and middle-income economies, 2022 (in $ million) Instrument type Adaptation finance Equity 7 Grant 3 539* Guarantee 289 Investment loan 14 091 Line of credit 767 Policy-based financing 3 032 Results-based financing 804 Other instruments 188 Total 22 718* (*) See footnote 1 for Figures 1a and 1b. MDB climate finance in low- and middle-income economies, 2022 | 11 Equity $7 million Grant $3 539* million Guarantee $289 million Investment loan $14 091 million Line of credit $767 million Policy-based financing $3 032 million Results-based financing $804 million Other instruments $188 million TOTAL CLIMATE FINANCE BY INSTRUMENT $22 718* million Figure 5. MDB adaptation finance by MDB and by type of instrument in low- and middle-income economies, 2022 (in $ million) 3% 1% 2% 1% 62% 15% 13% 3% TOTAL $22 718* million (*) See footnote 1 for Figures 1a and 1b. Table 11 shows total adaptation finance by region. The largest proportions of adaptation finance in low- and middle-income economies were in the following regions: Sub-Saharan Africa, South Asia, and Latin America and the Caribbean. Table 11. MDB adaptation finance by region in low- and middle-income economies, 2022 (in $ million) Region Adaptation finance Central Asia 812 East Asia and the Pacific 2 718* Europe: European Union 3 Europe: Non-European Union 1 049 Latin America and the Caribbean 3 635 Middle East and North Africa 1 805 South Asia 3 884 Sub-Saharan Africa 8 659 Multi-regional 154 Total 22 718* (*) See footnote 1 for Figures 1a and 1b. Central Asia $812 million East Asia and the Pacific $2 718* million Europe: European Union $3 million Europe: Non-European Union $1 049 million Latin America and the Caribbean $3 635 million Middle East and North Africa $1 805 million South Asia $3 884 million Sub-Saharan Africa $8 659 million Multi-regional $154 million TOTAL ADAPTATION FINANCE BY REGION $22 718* million Figure 6. MDB adaptation fi"

"ANCE IN LOW- AND MIDDLE-INCOME ECONOMIES In 2022, multilateral development banks committed $60.7 billion to low-income and middle- income economies, thus surpassing the annual expectation of $50 billion set in the joint MDB High Level Statement of 2019. Of the $60.9 billion of climate finance committed to low-income and middle-income economies, $57.9 billion was from the MDBs’ own account and $3.0 billion was in external resources channelled through MDBs. Mitigation finance committed to low- and middle- income economies totalled $38.2 billion, or 63%, while adaptation finance totalled $22.7 billion, or 37%. Sources of MDB climate finance are split between the multilateral development banks’ own accounts and the external resources channelled through and managed by them. External resources include trust-funded operations, such as those funded by bilateral agencies and dedicated climate finance funds such as the Climate Investment Funds (CIF), the Green Climate Fund (GCF) and climate-related funds under the Global Environment Facility (GEF), EU blending facilities and others. As bilateral reporting may already cover some external resources, those managed by the MDBs are presented separately from the multilateral development banks’ own accounts. Table 2. MDB climate finance in low- and middle-income economies, 2022 (in $ million) AfDB ADB AIIB CEB EBRD EIB IDBG IsDB NDB WBG Total Own account 3 151 6 721 2 311 295 3 949 4 097 5 556 1 050 466 30 334 57 931 MDB-managed external resources 500 385 - - 340 67 373 - - 1 333 2 985* MDB climate finance 3 651 7 107 2 311 295 4 289 4 165 5 930 1 050 466 31 666 60 916* Notes: 1. “MDB climate finance” refers to the sum of climate finance from the MDBs’ own accounts and MDB-managed external resources. 2. For IsDB, the reported commitment excludes operations of IsDB Group members including the Islamic Corporation for the Development of the Private Sector (ICD), the International Islamic Trade Finance Corporation (ITFC) and the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). 3. (*) See footnote 1 for Figures 1a and 1b. Table 3. MDB climate finance by scope in low- and middle-income economies, 2022 (in $ million) MDB Adaptation finance Mitigation finance MDB climate finance AfDB 2 276 1 375 3 651 ADB 2 829 4 277 7 107 AIIB 423 1 889 2 311 CEB 211 84 295 EBRD 300 3 989 4 289 EIB 431 3 734 4 165 IDBG 2 045 3 885 5,930 IsDB 571 479 1 050 NDB 0 466 466 WBG 13 640 18 027 31 666 Total 22 718* 38 198* 60 916* Notes: 1. In certain cases, MDBs finance activities that have simultaneous benefits for mitigation and adaptation. The 2022 figure of $2 354 million of climate finance with dual benefits in low- and middle-income economies is presented under the subheading of"