The OPEC Fund for International Development has adopted its first Climate Action Plan, which commits the organisation to increase its climate financing to 25% by 2025 and 40% by 2030 with a cross-cutting approach to all its projects. The current share of climate finance in approved projects is 20%.
The new Climate Action Plan will boost the Fund’s support for sustainable, low-carbon, inclusive and climate resilient investments in partner countries. The OPEC Fund will promote transformative climate investments in energy, transport, agriculture, food, water and smart cities, support climate diagnostics, planning and policies, and drive innovative climate finance solutions for the private sector.
OPEC Fund Director-General Dr Abdulhamid Alkhalifa says, “This is a historic moment as it commits the OPEC Fund to significantly increase its climate finance. Our new strategy is ambitious in its target numbers, but also in its approach to cover a variety of sectors where we invest. We are inspired by the conviction that climate goals and development objectives complement each other.”
The OPEC Fund will continue to work in partnership with other partner institutions and prioritise projects that seek to crowd-in the private sector.