OPEC Fund steps up support for small island nations with new climate finance platform

Highlights:

• OPEC Fund launches New Island Resilience Facility tailored to Small Island Developing States and presents new small islands strategy
• OPEC Fund SIDS Summit in Vienna gathers ministers from Austria, Antigua and Barbuda, Grenada and Mauritius, alongside development partners
• OPEC Fund signs MoU with the Pacific Islands Forum to enhance climate finance cooperation and support resilience across the Pacific region

May 12, 2025: The OPEC Fund for International Development (the OPEC Fund) is launching a new Island Resilience Facility, a dedicated platform to scale climate adaptation and sustainable development across Small Island Developing States (SIDS). The launch is one of the highlights of a dedicated SIDS Summit under the banner “Resilience in Action”, hosted at the OPEC Fund’s Headquarters in Vienna and attended by ministers, development partners and global institutions to accelerate support for vulnerable island nations.

OPEC Fund President Abdulhamid Alkhalifa said: 

“The fate of SIDS is not just a development challenge — it is a defining test of our global solidarity. The OPEC Fund’s new Island Resilience Facility is designed to deliver what’s urgently needed: concessional finance, technical support and real partnerships that move projects from paper to reality. We are building resilience one project at a time — and we are committed to ensuring no island is left behind.”

Representing the host country, Austria’s Federal Minister for European and International Affairs Beate Meinl-Reisinger said: 

“Small Island Developing States face challenges of unparalleled severity. Let us reinforce the very rules-based framework on which small nations depend, and turn resilience into real, tangible action. Austria stands firmly with you – today and in the years ahead.”

The Island Resilience Facility is consistent with the OPEC Fund’s planned and soon to be rolled out “SIDS Strategy”. The facility introduces tailored support to SIDS, structured around the needs of island nations. It provides technical assistance and project development support — with a strong focus on last mile financing to attract investment. Core focus areas include climate-resilient infrastructure, green digital solutions and capacity building for long-term sustainability.

During the SIDS Summit the OPEC Fund also signed a Memorandum of Understanding with the Pacific Islands Forum, formalizing a strategic partnership to strengthen climate finance access and delivery across the Pacific region. This will accelerate collaboration in key areas such as project preparation, capacity building, policy dialogue and knowledge sharing to support the development and implementation of bankable climate initiatives in Pacific Island countries.

Small Island Developing States (SIDS) are a distinct group of states that face unique social, economic and environmental vulnerabilities. Although the 39 island nations registered by the UN as SIDS together generate less than 1 percent of global greenhouse gas emissions, they are threatened by numerous phenomena related to climate change: Coastlines are retreating, coral reefs are dying off and hurricanes are breaking records over warming seas and oceans.

The ministerial roundtable brought together leaders from across the SIDS community, including Michael Joseph, Minister of State, Ministry of Health, Wellness, Social Transformation and the Environment, Antigua and Barbuda; Kerryne Z. James, Minister for Climate Resilience, the Environment and Renewable Energy of Grenada; and Dhananjay Ramful, Minister of Foreign Affairs, Regional Integration and International Trade, Mauritius. The two-day summit also includes technical workshops, policy roundtables and a project marketplace, where SIDS delegations pitch investment-ready projects directly to financiers and development partners. Sessions cover topics such as innovative finance, clean cooking, sustainable energy, and nature-based disaster resilience — all aimed at delivering actionable, scalable solutions.

Over the past four decades, the OPEC Fund has committed more than US$2 billion to 25 island nations, supporting projects in energy, health, transport, water and education. The new facility consolidates this legacy and scales it through deeper collaboration, particularly with regional platforms such as the Organisation of Eastern Caribbean States (OECS), the Indian Ocean Commission and the Pacific Islands Forum.

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$29 billion to development projects in over 125 countries with an estimated total project cost of more than US$200 billion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA+, Outlook Stable by S&P. Our vision is a world where sustainable development is a reality for all.