22 ENERGY
@ green | May-June , 2022
Climate Finance Platform enters next phase
IRENA can facilitate capital mobilisation and accelerate energy transition in developing countries
THE INTERNATIONAL Renewable Energy Agency ( IRENA ) signed agreements with the Abu Dhabi Fund for Development ( ADFD ) and The Abu Dhabi Future Energy Company ( known as Masdar ) at the Agency ’ s headquarters recently .
The agreement with ADFD formalises the fund ’ s anchor investment of US $ 400 million to IRENA ’ s Energy Transition Accelerator Financing ( ETAF ) Platform . The signing of the Letter of Intent with Masdar paves the way for renewable energy projects through technical advisories and equity investments .
The financing development , business expertise and financial commitment of ADFD and Masdar to ETAF is a testament to the UAE ’ s strong commitment to supporting the global energy transition , It will enable IRENA to facilitate capital mobilisation and significantly accelerate the energy transition in developing countries .”
— La Camera
Mohammed Saif Al Suwaidi , Director- General of the Abu Dhabi Fund for Development ( ADFD ), Mohamed Jameel Al Ramahi , Masdar ’ s Chief Executive Officer , and Francesco La Camera , Director-General of IRENA , signed the agreements and also delivered remarks at the signing ceremony .
“ The financing development , business expertise and financial commitment of ADFD and Masdar to ETAF is a testament to the UAE ’ s strong commitment to supporting the global energy transition ,” said La Camera .
“ It will enable IRENA to facilitate capital mobilisation and significantly accelerate the energy transition in developing countries ,” said La Camera .
“ With strong , committed partners , I ’ m certain that this platform will be transformative in the pursuit of a just , inclusive , and prosperous future .”
ADFD Director-General Mohammed Saif Al Suwaid said the agreement reflected their commitment to sustainability goals . He added the ETAF platform supported the strategic objective of the UAE to unite global efforts to address climate change through the promotion of renewable energy .
“ ADFD ’ s funding supports the platform ’ s objectives , as it attracts new investment and provides innovative solutions and financing tools to promote renewable energy in developing countries ,” said Al Suwaid .
CEO Mohamed Jameel Al Ramahi said Masdar was proud to build strong relationships with IRENA and ADFD by joining the ETAF platform . The platform was an important tool to help finance renewable energy projects in developing countries and one that will leverage Masdar ’ s expertise as a global renewable energy powerhouse .
“ The agreement reinforces Masdar and the UAE ’ s steadfast commitment to supporting the developing world in the energy transition ,” said Al Ramahi .
By joining the ETAF Platform , Masdar leverages its extensive expertise as an international renewable energy project developer and operator to increase bankability and attract investors to ETAF projects . Masdar will also provide a soft capital commitment to equity investment in projects until 2030 .
ETAF is a multi-stakeholder climate finance platform targeting the deployment of 1.5 gigawatts of new renewable power in developing countries by 2030 . The signing formalises ADFD ’ s commitment of USD 400 million in funding and is a significant step towards the platform ’ s goal of securing a minimum of USD one billion .
New partnership signed to support developing countries in renewable energy deployment
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THE INTERNATIONAL Renewable Energy Agency ( IRENA ) and the OPEC Fund for International Development ( OPEC Fund ) are ramping up efforts to advance renewable energy investment and enable access to sustainable finance in emerging and developing economies .
A Memorandum of Understanding signed recently in Vienna by IRENA ’ s Director-General Francesco La Camera and the Director-General of the OPEC Fund , Dr Abdulhamid Alkhalifa , formalises the cooperation .
In pursuit of the common objective of a just , inclusive and equitable energy transition aligned with the 2030 Agenda for Sustainable Development and the Paris Agreement , both sides agreed to mobilise finance , unlock investment and support project development on the ground .
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IRENA ’ s Director-General Francesco La Camera said : “ The global energy transition must dramatically accelerate . To achieve net-zero and universal energy access , our World Energy Transitions Outlook shows that we must nearly treble the speed of deployment of renewables and massively redirect investment towards transition . Our cooperation with the OPEC Fund will help unlock much-needed capital in developing countries to bring economic growth , sustainable prosperity and jobs to people through renewables projects on the ground .”
OPEC Fund Director-General Abdulhamid Alkhalifa added they promoted an inclusive and just energy transition that leaves no one behind .
“ Our cooperation with IRENA will help provide the necessary funds and facilitate access to innovative financing solutions ,
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knowledge and technologies , as well as technical assistance for project development and capacity building to support the energy transition in our partner countries , particularly in Africa ,” said Alkhalifa .
At a practical level , both sides will collaborate to provide technical assistance and capacity building to project developers , creating a pipeline of bankable projects ready to be financed . They will also work to attract potential investors .
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The parties will also explore cooperation under the IRENA-managed Energy Transition Accelerator Financing ( ETAF ) Platform , the Climate Investment Platform ( CIP ), and OPEC Fund initiatives such as the planned Energy Access and Transition Trust Fund .
Both sides will also closely collaborate at UN Climate Conferences COP27 in Egypt in November 2022 and COP28 in the United Arab Emirates in November 2023 . — @ Green
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