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 $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 $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 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.

The Opec Fund for International Development (the Opec Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively.

The organisation works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world.

The Opec Fund was established in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. “

Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education. To date, the Opec Fund has committed more than $24 billion to development projects in over 125 countries with an estimated total project cost of $190 billion. The Opec Fund is rated AA+/Outlook Stable by Fitch and AA, Outlook Positive by S&P. Our vision is a world where sustainable development is a reality for all.

IRENA is the lead intergovernmental agency for the global energy transformation that supports countries in their transition to a sustainable energy future, and serves as the principal platform for international co-operation, a centre of excellence, and a repository of policy, technology, resource and financial knowledge on renewable energy.

With 168 Members (167 States and the European Union) and 16 additional countries in the accession process and actively engaged, IRENA promotes the widespread adoption and sustainable use of all forms of renewable energy in the pursuit of sustainable development, energy access, energy security and low-carbon economic growth and prosperity.

Meanwhile the Opec Fund for International Development (Opec Fund) is providing two loans to the People’s Republic of China to promote vocational and technical education.

A loan of $50 million will support the Shijiazhuang Vocational Education Project in Hebei Province, while another $20 million loan will finance the Lanzhou Vocational Education Project in Gansu Province, ensuring an inclusive and equitable quality education and supporting lifelong learning opportunities.

OPEC Fund Director-General Dr Abdulhamid Alkhalifa,who signed the loan agreement with Qi Mei, Ambassador of the People’s Republic of China to Austria, at the OPEC Fund Headquarters in Vienna, Austria, said: “These projects mark another milestone in the fruitful cooperation between the OPEC Fund and China, which started in 2007.”

“In the last decades, China’s has made remarkable progress in achieving economic development and lifted millions of people out of poverty.” “The Opec Fund is contributing to these efforts by supporting vital sectors such as education.”

The Opec Fund-sponsored projects will expand and strengthen the capacity of the existing vocational education system in China, delivering market-oriented education to approximately 25,000 young job seekers and about 30,000 professional and skilled workers each year.