IRENA & OPEC Fund for International Development have signed an MoU to mobilise fund
International Renewable Energy Agency (IRENA) and OPEC Fund for International Development (OPEC Fund) are stepping up efforts to boost renewable energy investment and enable sustainable finance for emerging and developing economies.
IRENA’s Director-General, Francesco La Camera, and OPEC Fund’s Director-General, Dr Abdulhamid Alkhalifa, signed a Memorandum of Understanding today in Vienna. Both sides agreed to mobilize finance, unlock investments, and support project development on the ground to reach their common goal of a just, inclusive and equitable energy transition in line with the 2030 Agenda for Sustainable Development and the Paris Agreement.
#OPECFundDevForum ➡️ Our DG Dr. Abdulhamid Alkhalifa and Francesco La Camera @flacamera, DG of @IRENA, have signed a Memorandum of Understanding (MoU) to support developing countries in their renewable energy deployment.🤝 #FromAmbitionToAction #SDG7
➡️ https://t.co/LMyPsoq9q6 pic.twitter.com/8JTnOSz71f
— The OPEC Fund for International Development (@TheOPECFund) June 21, 2022
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 [triple] 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:
“We promote an inclusive and just energy transition that leaves no one behind. Our cooperation with IRENA will help to provide the necessary funds and facilitate access to innovative financing solutions, 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.”
Both sides will offer technical assistance and capacity building to projects developers, creating a pipeline of bankable projects. Also, they will seek investors.
The parties will also look into partnering under IRENA’s Energy Transition Accelerator Financing (ETAF) Platform, the Climate Investment Platform (CIP), and OPEC Fund initiatives such as the Energy Access and Transition Trust Fund.
Both sides will also work closely at UN climate conferences COP27 in Egypt in November 2022 and COP28 in the UAE in November 2023.
IRENA is the lead intergovernmental agency for 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 renewables.
With 167 Members (166 States and the European Union) and 17 additional countries in the accession process and actively engaged, IRENA promotes the widespread adoption and sustainable use of all forms of renewables in pursuit of sustainable development, energy access, energy security and low-carbon economic growth and prosperity.
About the OPEC Fund
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 organization 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 by the member countries of OPEC 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 US$22 billion to development projects in over 125 countries with an estimated total project cost of US$187 billion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA/A-1+, Positive Outlook by S&P in 2021. Our vision is a world where sustainable development is a reality for all.