The OPEC Fund is committed to deploying a genuine climate action plan at COP27 in Egypt to increase climate resilience. It will also accelerate the transition and energy security of developing countries.
Climate finance
By 2030, 40% of OPEC Fund financing will be related to the fight against global warming. This promise was made at the time of the adoption of the OPEC Fund’s Climate Action Plan. As a member of the Arab Coordination Group, the institution will be able to count on an envelope of several billion dollars.
Sustainable development was suffering the consequences of the Covid-19 pandemic. But the holding of the conference in Egypt appears to be an opportunity to act. Thus, Dr. Abdulhamid Alkhalifa, Director-General of the OPEC Fund, said:
“Our goal now must be to get things back on track for development. We must use COP27 to strengthen international cooperation to maximize impact in a sustainable way for all partner countries.”
The Fund plans to invest $100 million in the Climate Finance and Energy Innovation Hub. This will address the issue of clean and affordable energy. Every dollar invested will turn into four dollars of green and sustainable capital, which will increase the attractiveness of the project.
Development aids
Negotiations should lead to the signing of an agreement with the African Development Bank. It will promote sustainable socio-economic growth in Africa based on knowledge sharing and co-financing. The OPEC Fund is unique in that it can provide financing from member countries to non-member countries exclusively.
Since 1976, the OPEC Fund has been providing financial support for the socio-economic development of low and middle-income countries. It has the means to stimulate development, strengthen communities and empower people. To date, more than $22 billion has been used to fund development projects in over 125 countries.
This work has earned the institution excellent ratings from the major international financial rating agencies. This shows a positive track record of development impact. This is excellent news for this institution that wants to guarantee a world where sustainable development is a reality for all.
