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OPEC to fund renewable energy solutions in select countries

The OPEC Fund will finance US$250mn for renewable energy solutions in its partner countries. (Image source: IRENA)

The OPEC Fund for International Development (the OPEC Fund) signed an agreement with the International Renewable Energy Agency (IRENA) to join the Energy Transition Accelerator Financing (ETAF) platform on 19 June

The ETAF is a global initiative that seeks to mobilise funds for renewable energy investments. The OPEC Fund plans to support the platform with up to US$250mn financing until 2030 to finance renewable energy solutions in its partner countries

The ETAF platform, established by IRENA and backed by the United Arab Emirates, initially aimed to mobilise at least one billion dollars of capital by 2030. Now, with the commitment from the OPEC Fund and contributions from all other existing ETAF partners, this initial target has been surpassed, with total commitments amounting to US$1.15 bn. The partnership between the OPEC Fund and IRENA also further reinforces the platform's global reach and impact in attracting interest from other international financing institutions, multilateral development banks, development financial institutions, donors, and corporate sector entities.

IRENA's director-general Francesco La Camera and OPEC fund director-general Abdulhamid Alkhalifa signed the agreement in Vienna during the OPEC Fund Development Forum. La Camera said, “Accelerating a renewables-based energy transition is imperative in the fight against climate change, as it enables us to simultaneously tackle 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 strengthen the platform’s role as an effective and agile mobiliser of capital for the most vulnerable economies.”

Alkhalifa added, “This collaboration marks an important milestone in our joint efforts to tackle the twin challenges of climate change and energy poverty thanks to this innovative platform. It will help to progress an inclusive and just energy transition that leaves no one behind with investments, new technologies and knowledge sharing."