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OPEC Fund and UNIDO increase cooperation to advance the clean energy transition
April 11, 2023: The OPEC Fund for International Development (the OPEC Fund) and the United Nations Industrial Development Organization (UNIDO) signed a joint declaration to deepen their partnership in securing energy access and promoting energy transition. They also signed a US$1.5 million technical assistance grant agreement in support of the National Clean Cooking Transition Program in Madagascar.
The OPEC Fund grant will finance detailed studies and pilot projects as part of the Madagascar clean cooking transition program, which the OPEC Fund is funding with a US$35 million loan. UNIDO and project partners will also develop a monitoring and evaluation framework for the implementation and measurement of development results, which can be replicated in other countries for similar projects.
OPEC Fund Director-General Dr. Abdulhamid Alkhalifa signed the joint declaration and the grant agreement in Vienna with Gerd Müller, Director-General of UNIDO, and said:
“We are very pleased to expand our cooperation with UNIDO and to support our flagship clean cooking program in Madagascar with UNIDO’s vast technical and advisory expertise, which is critical for an effective implementation. We continue to strengthen synergies with new and existing partners through the recently launched Climate Finance and Energy Innovation Hub and look forward to collaborating with UNIDO to help deliver the Sustainable Development Goals.”
UNIDO’s Gerd Müller said:
“I am pleased to begin a new era of partnership with a new quality of cooperation with the OPEC Fund. As a start, UNIDO is working with the OPEC Fund to expand the use of clean fuels and technologies improving health and living conditions of communities in Madagascar. This partnership will make a difference as we plan to roll-out clean cooking solutions to 500,000 households in five cities across the country.”
In their joint declaration, both institutions confirm their commitment to increase cooperation in advancing energy access and clean cooking, mobilizing public and private funds to support energy access, green transition, climate adaptation and resilience. Both institutions are also promoting the private sector and the development of agro-industries and agri-business value chains.
The Climate Finance and Energy Innovation Hub is a partnership launched in June 2022 by the OPEC Fund, the UN Capital Development Fund (UNCDF) and the UN-affiliated organization Sustainable Energy for All (SEforALL) to accelerate access to clean and affordable energy in developing countries. It is prioritizing clean cooking and provides support for countries to advance it as a critical component of their integrated energy plans. Madagascar is the first country where the new approach is being rolled out.
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 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$24 billion to development projects in over 125 countries with an estimated total project cost of US$190 billion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA/Outlook Positive by S&P. Our vision is a world where sustainable development is a reality for all.
UNIDO is a specialized agency of the United Nations with a unique mandate to promote, dynamize and accelerate industrial development. Our mandate is reflected in Sustainable Development Goal (SDG) 9: “Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation”, but UNIDO’s activities contribute to all the SDGs.
UNIDO’s vision is a world without poverty and hunger, where industry drives low-emission economies, improves living standards, and preserves the livable environment for present and future generations, leaving no one behind.
UNIDO provides support to its 171 Member States through four mandated functions: technical cooperation; action-oriented research and policy-advisory services; normative standards-related activities; and fostering partnerships for knowledge and technology transfer.