E.g., 04/22/2024
E.g., 04/22/2024
Financing Responses to Climate Migration: The Unique Role of Multilateral Development Banks
November 2022

Financing Responses to Climate Migration: The Unique Role of Multilateral Development Banks

As climate change increasingly contributes to migration and displacement in many parts of the world, there is a pressing need for measures that build resilience and prevent displacement as well as those that help climate-affected people move to safety and support receiving communities. Multilateral development banks (MDBs) are critical, if sometimes overlooked, players because of their ability to invest in large-scale projects that contribute to sustainable development, primarily in low- and middle-income countries.

This report explores the unique role of MDBs in the climate finance landscape and highlights opportunities for migration, humanitarian, and other key actors to partner with them on projects that effectively target climate-related migration and displacement. After reviewing the evidence on the complex linkages between climate and mobility, the report examines MDBs’ climate-related work to date, challenges they face to scaling up these efforts, and strategies to begin to address hurdles. These recommendations include learning from past MDB investments that have touched on climate migration, funding data collection or sharing to strengthen understanding of climate migration trends, and developing partnerships to support policy and project development, financing, and implementation.

Table of Contents 

1  Introduction

2  Reviewing the Evidence on Climate Change, Migration, and Displacement
A. Why Do People Move?
B. How Do People Move?

3  Challenges to MDB Financing for Climate Migration Projects
A. A Need for More Context-Specific Data and Knowledge
B. Limited National Policy Frameworks and Client Demand
C. A Dearth of Concessional Financing and Grant Funding
D. Underdeveloped Internal Coordination and Capacity

4  Prevention: Targeting Climate Displacement Hotspots
A. The What: Investments to Reduce Exposure to Climate Impacts
B. The How: Technical and Financial Tools

5  Preparedness: Supporting Host Communities, Migrants, and Displaced People
A. Building Migrant-Inclusive, Climate-Resilient Infrastructure
B. Enhancing Private-Sector Development and Livelihood Opportunities

6  Conclusions