OPEC Fund Joins Global Initiative to Mobilize Funds for Renewable Energy Investments

OPEC Fund Joins Global Initiative to Mobilize Funds for Renewable Energy Investments

The OPEC Fund for International Development (OFID) has entered into an agreement with the International Renewable Energy Agency (IRENA) to become a member of the Energy Transition Accelerator Financing (ETAF) platform. This global initiative aims to mobilize funds for investments in renewable energy.

Under the agreement, the OPEC Fund plans to provide up to US$250 million in financing until 2030 to support renewable energy solutions in its partner countries.

The agreement was signed by OPEC Fund Director-General Abdulhamid Alkhalifa and IRENA Director-General Francesco La Camera in Vienna during the OPEC Fund Development Forum.

Abdulhamid Alkhalifa expressed the significance of the collaboration, stating, “This partnership is a crucial milestone in our joint efforts to address the challenges of climate change and energy poverty through this innovative platform. It will contribute to an inclusive and equitable energy transition that leaves no one behind, with investments, new technologies, and knowledge sharing.”

Francesco La Camera emphasized the urgency of accelerating the transition to renewables, stating, “Advancing a renewables-based energy transition is essential in the fight against climate change, as it allows us to simultaneously address pressing energy challenges and alleviate persistent social inequalities. We are proud to announce the OPEC Fund’s decision to join IRENA’s ETAF Platform, which will significantly enhance the Platform’s role in mobilizing capital for the most vulnerable economies.”

Initially, the ETAF platform aimed to mobilize at least US$1 billion in capital by 2030. However, with the commitment from the OPEC Fund and contributions from existing ETAF partners, the initial target has been surpassed, with total commitments now exceeding US$1.15 billion.

The partnership between the OPEC Fund and IRENA strengthens the global reach of the platform and enhances its ability to attract interest from other international financing institutions, multilateral development banks, development financial institutions, donors, and corporate sector entities.

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