The OPEC Fund goes to COP27: Doubling climate funding while fostering innovation

Boosted by its recently approved Climate Action Plan the OPEC Fund for International Development will actively participate for the first time in a UN Climate Change Conference, which this year will be held in Sharm El-Sheikh, Egypt from November 6 to 18.

Our presence at COP27 will provide an opportunity to share our new plan with governments, multilateral development and finance organizations, climate funds and other interested parties. Egypt as holder of this year’s COP presidency has said that more than 35,000 participants are expected at the two-week conference.

At a joint side event led by the OPEC Fund on November 9, the Arab Coordination Group (ACG), a union of regional development institutions, will launch a major initiative for climate action. This new financial platform and package will address the energy transition and augmentation of climate change action across the Global South.

Beyond the ACG declaration, announced by the chiefs of the OPEC Fund and the Islamic Development Bank Group, the event will include two panel sessions: one on Islamic finance as a driver of low-carbon and resilient development, followed by two OPEC Fund announcements.

The first OPEC Fund announcement will spotlight our new Climate Action Plan, which will raise our climate financing to 40 per cent of annually approved projects by 2030 — double our current rate — while also introducing a new holistic approach whereby all our new projects will be appraised according to their climate impact.

The second OPEC Fund announcement will launch our Climate Finance and Energy Innovation Hub, together with partners the United Nations Capital Development Fund and the organization Sustainable Energy For All. Recognizing the crucial role of clean cooking we have earmarked US$100 million in support of relevant projects as part of the initiative.

Nonetheless, while stepping up climate action the OPEC Fund retains its commitment to combating energy poverty and promoting Sustainable Development Goal 7 - Affordable and Clean Energy, with a view to ensuring a just and inclusive energy transition.

In the words of our UN hosts, COP27 aims to deliver real progress in the implementation of the Paris Agreement — “from urgently reducing greenhouse gas emissions, building resilience and adapting to the inevitable impacts of climate change, to delivering on the commitments to finance climate action in developing countries”.