The OPEC Fund for International Development will launch new climate action at the UN Climate Conference COP27 in Sharm El-Sheikh. The conference will see the unveiling of a multibillion-dollar financing package by the Arab Coordination Group (ACG), a group of 10 development finance institutions including the OPEC Fund, to address the global climate crisis.
The ACG package for the period 2022-2030 will support economies in developing countries to accelerate the energy transition, increase climate resilience and promote energy security. The new facility follows the adoption of the OPEC Fund Climate Action Plan that commits the institution to increase its climate finance to 40 per cent of new financing by 2030.
OPEC Fund Director-General Dr. Abdulhamid Alkhalifa, who will lead the institution’s delegation at COP27, said: “We are living through a challenging period, which started with the COVID-19 pandemic, quickly followed by other crises, including food insecurity, soaring inflation and an economic slowdown. Our goal now must be to get things back on track for development. We must use COP27 to strengthen international cooperation so that we can maximize impact in a sustainable way for all partner countries.”
During COP27, the OPEC Fund will also roll out its Climate Finance and Energy Innovation Hub, a joint facility with the United Nations Capital Development Fund and Sustainable Energy For All, which will provide support for the delivery of Sustainable Development Goal 7, “clean and affordable energy”, in developing countries, starting with Madagascar. The OPEC Fund is setting aside US$100 million for the Hub and aims to leverage 1 dollar invested from sovereign sources into 4 dollars of green and sustainable capital.
The conference in the Egyptian city of Sharm El-Sheikh will also see a number of events and meetings organized by the OPEC Fund in the period from November 7-18. Together with partners from the community of multilateral development banks, international financial institutions, partner countries and private sector representatives the OPEC Fund delegation will engage in discussions on sustainable infrastructure, private sector mobilization, food security, clean cooking and other important and timely topics. The signing of a Memorandum of Understanding with the African Development Bank will strengthen the partnership between the two institutions in order to promote sustainable socio-economic growth in Africa through synergies, knowledge sharing and increased co-financing opportunities.
The OPEC Fund will be present at COP27 with its own pavilion in the Blue Zone – a UN-managed space where negotiations will be hosted and attendees must be accredited by the UNFCCC Secretariat.
