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When the G7 leaders met at the end of June 2022 in Elmau, they called on Multilateral Development Banks (MDBs) to further strengthen ambitious climate action. This policy brief explains what the G7 asked the MDBs to do, why this is important, and what it means in terms of concrete steps that should be taken in the short and medium term (including until COP27) to halt the climate crisis and successfully support the global transformation towards green and resilient economies. In this critical decade of implementation, quick outcomes are more important than ever before and MDBs are called upon to increase their efforts. Especially the World Bank will be assessed in terms of its ability to step up its climate ambitions and to lead the MDBs’ engagement in those areas.

Outstanding scientific research is exploring tipping points’ development and dynamics. Lacking, however, is a systematic approach that translates scientific research into concrete recommendations. Also lacking are targeted calls for action for political decision-makers in affected countries and regions, as well as the international community. An early warning system in the form of a regular report could fill this gap.

One of the most prominent projects launched by Germany during its G7 presidency has been the initiation of an international “climate club”. The push for an international climate alliance has come at the right time: A properly designed climate alliance can make an important contribution to global emissions reduction and climate justice, accelerate industrial transformation around the world, and create conditions for fair competition. In the worst case, however, the existence of a climate alliance can have the opposite of its intended effect; for example, if it is seen as an exclusive project of the West.