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- OPEC Fund approves over US$300 million in new financing and delivers on its Climate Action Plan
OPEC Fund approves over US$300 million in new financing and delivers on its Climate Action Plan
March 14, 2023: The OPEC Fund for International Development (the OPEC Fund) has approved more than US$300 million in new financing in the first quarter of 2023, reflecting the institution’s commitment to fulfilling its Climate Action Plan. Three out of the four projects approved by the OPEC Fund’s Governing Board directly support climate finance.
Director-General Dr. Abdulhamid Alkhalifa said: “The OPEC Fund is proud to deliver on its climate commitments and ensure a positive impact for people and planet. These efforts will aid our partners in Africa, Asia and Latin America to enhance their climate policies while boosting resilience to climate change. At the same time, our work on access to energy and road infrastructure underline our continued dedication to improving people’s lives worldwide.”
The OPEC Fund adopted its first dedicated Climate Action Plan in September 2022. The plan commits the organization to increase the share of its climate financing to 40 percent of all new financing by 2030 and to mainstream climate action into the project cycle, increasing climate adaptation, mitigation and resilience investments in energy, transport, agriculture, food, water and smart cities.
The OPEC Fund Governing Board approved the following projects:
Armenia: A €50 million loan will support policies for increasing climate resilience and mitigation through a series of reforms concerning energy efficiency, air quality standards and to finance environmental impact assessments.
Colombia: A US$150 million loan will support policies for the promotion of sustainable and resilient growth by fostering the government’s capacity to plan climate action and promote energy transition.
India: A US$100 million loan will help finance a 56 km ring road around one of the country’s largest cities, serving a population of more than 4 million people. The financing will also be supported by a US$410,000 grant, which will contribute to project preparation and implementation.
Seychelles: A US$20 million loan will help the country strengthen policies to promote inclusive and sustainable growth. Among the planned actions are climate-related reforms to land development, consumer data protection and fishing regulations.
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.