OPEC Fund launches climate action plan

The OPEC Fund is committed to deploying a real climate action plan at COP27 in Egypt to increase climate resilience.

Share:

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.

The German Ministry of Economy plans to significantly expand aid aimed at reducing industrial electricity costs, increasing eligible companies from 350 to 2,200, at an estimated cost of €4bn ($4.7bn).
A major electricity blackout paralyzed large parts of the Czech Republic, interrupting transport and essential networks, raising immediate economic concerns, and highlighting the vulnerability of energy infrastructures to unforeseen technical incidents.
French greenhouse gas emissions are expected to rise by 0.2% in the first quarter of 2025, indicating a global slowdown in reductions forecast for the full year, according to Citepa, an independent organisation responsible for national monitoring.
The Republican budget bill passed by the U.S. Senate accelerates the phase-out of tax credits for renewable energies, favoring fossil fuels and raising economic concerns among solar and wind industry professionals.
Rapid growth in solar and wind capacities will lead to a significant rise in electricity curtailment in Brazil, as existing transmission infrastructure remains inadequate to handle this massive influx of energy, according to a recent study by consulting firm Wood Mackenzie.
In April 2025, fossil fuels represented 49.5% of South Korea's electricity mix, dropping below the symbolic threshold of 50% for the first time, primarily due to a historic decline in coal-generated electricity production.
The US Senate Finance Committee modifies the '45Z' tax credit to standardize the tax treatment of renewable fuels, thereby encouraging advanced biofuel production starting October 2025.
According to the 2025 report on global energy access, despite notable progress in renewable energy, insufficient targeted financing continues to hinder electricity and clean cooking access, particularly in sub-Saharan Africa.
While advanced economies maintain global energy leadership, China and the United States have significantly progressed in the security and sustainability of their energy systems, according to the World Economic Forum's annual report.
On the sidelines of the US–Africa summit in Luanda, Algiers and Luanda consolidate their energy collaboration to better exploit their oil, gas, and mining potential, targeting a common strategy in regional and international markets.
The UK's Climate Change Committee is urging the government to quickly reduce electricity costs to facilitate the adoption of heat pumps and electric vehicles, judged too slow to achieve the set climate targets.
The European Commission will extend until the end of 2030 an expanded state-aid framework, allowing capitals to fund low-carbon technologies and nuclear power to preserve competitiveness against China and the United States.
Japan's grid operator forecasts an energy shortfall of up to 89 GW by 2050 due to rising demand from semiconductor manufacturing, electric vehicles, and artificial intelligence technologies.
Energy-intensive European industries will be eligible for temporary state aid to mitigate high electricity prices, according to a new regulatory framework proposed by the European Commission under the "Clean Industrial Deal."
Mauritius seeks international investors to swiftly build a floating power plant of around 100 MW, aiming to secure the national energy supply by January 2026 and address current production shortfalls.
Madrid announces immediate energy storage measures while Lisbon secures its electrical grid, responding to the historic outage that affected the entire Iberian Peninsula in late April.
Indonesia has unveiled its new national energy plan, projecting an increase of 69.5 GW in electricity capacity over ten years, largely funded by independent producers, to address rapidly rising domestic demand.
French Minister Agnès Pannier-Runacher condemns the parliamentary moratorium on new renewable energy installations, warning of the potential loss of 150,000 industrial jobs and increased energy dependence on foreign countries.
The European battery regulation, fully effective from August 18, significantly alters industrial requirements related to electric cars and bicycles, imposing strict rules on recycling, supply chains, and transparency for companies.
The European Parliament calls on the Commission to strengthen energy infrastructure and accelerate the implementation of the Clean Industrial Deal to enhance the continent's energy flexibility and security amid increased market volatility.