Masdar and IFC agree to explore ways to advance climate action

Masdar, one of the world’s fastest-growing renewable energy companies, has signed an agreement with the International Finance Corporation (IFC), the largest global development institution focused on the private sector in developing countries, to explore collaboration in supporting climate action for emerging markets.

The collaboration framework was signed by Mohamed Jameel Al Ramahi, Chief Executive Officer, Masdar, and Mohamed Gouled, Vice President of Industries at IFC, on the sidelines of the World Government Summit 2023, in Dubai this week. Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, COP28 President-Designate, and Masdar Chairman, witnessed the signing, along with Makhtar Diop, Managing Director of the IFC.

Dr. Al Jaber said, “As the UAE prepares to host COP28, we have placed a special emphasis on ensuring better, more efficient and more equitable access to climate finance. The UAE is a trusted partner of many nations and actively supports the development of emerging nations. The IFC has been a key partner for Masdar in many emerging markets, and this agreement carries forward the UAE’s commitment to equitable climate finance and inclusive, sustainable development.”

Makhtar Diop said, “We are excited to advance our partnership with Masdar today and leverage IFC’s climate expertise across emerging markets to support Masdar in achieving breakthroughs in sectors such as renewable energy, green hydrogen, and green finance.”

Under the agreement, Masdar and the IFC will explore support for establishing green hydrogen platforms for emerging markets and the potential collaboration on bankability and structuring issues for African renewable energy projects.

The framework also covers exploring mechanisms to accelerate the adoption of distributed photovoltaic (DPV) systems and the development of innovative new technologies and business models in emerging markets in response to the evolving climate crisis.

Al Ramahi said, “Masdar has a long history with the IFC, where we have worked together to fund clean energy projects from Jordan to Uzbekistan and other countries. We are confident this agreement will serve as the foundation for further impactful collaborations that advance sustainable development in the countries and communities that need it most.”

The IFC, which is a member of the World Bank Group, uses its capital, expertise, and influence to create markets and opportunities in developing countries.

Masdar is active in several emerging markets, developing utility-scale and DPV projects to bring clean energy to communities across Asia and Africa. It has already completed many projects in African countries, including Egypt, Mauritania, Seychelles, and Morocco.

At the recently concluded Abu Dhabi Sustainability Week 2023, Masdar announced the signing of deals for projects with a combined generation capacity of 5GW across Angola, Uganda, and Zambia as part of Etihad 7, a UAE-led initiative that aims to raise public- and private-sector funds to invest in the development of Africa’s renewable energy sector.

In addition to renewable energy, green hydrogen is an emerging new sector. According to a recent report from Masdar and McKinsey & Company, Africa could capture as much as 10 per cent of the global green hydrogen market, helping to create up to 3.7 million jobs and adding as much as $120 billion to the continent’s gross domestic product.

Meanwhile Abu Dhabi Fund for Development (ADFD) and the International Finance Corporation (IFC), a member of the World Bank Group, have signed a Memorandum of Cooperation (MoC) during the World Government Summit to support investments in emerging markets related to the clean energy transition, climate mitigation and adaptation, the adoption of clean technologies, and food security amongst others.

The cooperation framework aims to strengthen the strategic collaboration between the two organisations in several key areas, including by co-investing up to Dhs5.5 billion ($1.5 billion) in private sector-led projects.

The new cooperation also paves the way for an enhanced exchange of knowledge that leverages best practices and global expertise of both parties.

The agreement was signed by Mohamed Saif Al Suwaidi, Director-General of the ADFD; and Makhtar Diop, Managing Director of IFC.

Al Suwaidi stated that this partnership presented promising opportunities for attaining the sustainable development goals of developing countries.

“The cooperation framework will boost investment in climate and food security projects in crucial sectors such as renewable energy and food security. It will also help stimulate economic activity in both the national private sector and in developing countries, enabling countries to achieve their development goals and programmes,” he said.