The OPEC Fund for International Development (the OPEC Fund) has signed an agreement with the International Renewable Energy Agency (IRENA) to join the Energy Transition Accelerator Financing (ETAF) platform, a global initiative that seeks to mobilise funds for renewable energy investments.
The OPEC Fund plans to support the platform with up to $250 million in financing until 2030 to finance renewable energy solutions in its partner countries.
Francesco La Camera, the director-general of IRENA said accelerating the renewables-based energy transition is imperative in the fight against climate change, as it enables the agency 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,” he said.
Initially, the ETAF platform, established by IRENA and backed by the United Arab Emirates, aimed to mobilise at least $1 billion 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 $1.15 billion.
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.
Abdulhamid Alkhalifa, director-general, OPEC Fund said the collaboration marks an important milestone in their joint efforts to tackle the twin challenges of climate change and energy poverty, and noted that it will help progress an inclusive and just energy transition that leaves no one behind with investments, new technologies and knowledge sharing.