OPEC Fund partners with IRENA to accelerate energy transition financing

The OPEC Fund for International Development (OFID) 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 US$250 million in financing until 2030 for renewable energy solutions in its partner countries.

OPEC Fund Director-General Abdulhamid Alkhalifa and Director-General of IRENA Francesco La Camera signed the agreement in Vienna on the sidelines of the OPEC Fund Development Forum.

Commenting on the agreement, Alkhalifa said, “This collaboration marks an important milestone in our joint efforts to tackle the twin challenges of climate change and energy poverty via 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."

La Camera, in turn, stated, "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.”

The ETAF platform initially aimed to mobilise at least US$1 billion of capital by 2030. Now, with the commitment from the OPEC Fund and contributions from all other existing ETAF partners, this initial target has been surpassed, with total commitments amounting to US$ 1.15 billion.

The OPEC Fund and IRENA partnership also reinforces the platform's global reach and ability to attract interest from other international financing institutions, multilateral development banks, development financial institutions, donors and corporate sector entities.

Source: Wam / Rola AlGhoul