National Development Banks (NDBs) hold enormous potential to finance climate action, yet their role is often overlooked compared to multilateral development banks (MDBs) like the World Bank and Asian Development Bank.
Developing countries (excluding China) need around $2.3–2.5 trillion annually by 2030 for nature and climate initiatives — nearly four times current levels. With combined assets of $20 trillion, NDBs could significantly scale up climate investments.
Currently, NDBs provide one-fifth of global climate finance, but only 14% of their credit portfolios are green. Success stories include India’s NABARD channeling adaptation funds to rural projects, Brazil’s BNDES leveraging match-funding for forest restoration, and South Africa’s DBSA financing small renewable energy ventures.
Challenges remain, such as limited capital, technical capacity, and impact tracking. By strengthening their frameworks and aligning with international partners, NDBs could play a catalytic role in transitioning countries toward sustainable, low-carbon futures.
