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GHG reductions
Annual greenhouse gas emission reductions (tons of CO2 equivalent/year)
Definition
This indicator measures the annual tons (in millions) of CO2 equivalent emission reductions (tCO2eq), or sequestration, expected to be produced by climate change mitigation projects supported by OPEC Fund financing. Projects with CO2 emission reduction could include renewable energy generation; supply- and demand-side energy efficiency projects, afforestation and reforestation and conservation projects, wastewater treatment technology, transport (urban transport modal change), climate smart agriculture, among others. The data for a particular year is calculated based on the ex-ante estimated annual emission reductions of investment loans, guarantees, and equities that are committed by OPEC Fund during that year. The ex-ante annual emission reduction figure for a project is estimated as an annual average, or for a representative year, when the activities financed are expected to be completed and operate at full capacity. This is calculated based on the principles agreed in the International Financial Institution (IFI) Framework for a Harmonized Approach to Greenhouse Gas Accounting as well as the harmonized IFI methodologies for specific sectors, where these exist. Only projects for which CO2 emission reduction figures are stated in the Loan Proposal (or its Annexes), or at the latest formally estimated before commitment, are counted. Reduction in greenhouse gas emissions resulting from the use of biofuels are included for projects involving biofuels produced in a sustainable manner. The net GHG emissions for biofuels vary significantly depending on the feedstock source and production pathway. Greenhouse gas conversion factors for biofuels may be used.
https://assets.publishing.service.gov.uk/.../conversion-factors-2020-methodology.pdf
This indicator reflects the aggregate results of all projects completed in the public sector, or those that have reached Early Operation maturity in the private sector. The OFRF presents both the most recent year’s results (for the 12 months leading up to June 30th of the stated year) and three-year rolling cumulative values (for the 3 years leading up to June 30th of the stated year), to address annual data variability and provide a longer-term perspective on development results achieved.
Why it matters for the OPEC Fund
Reducing greenhouse gas emissions is essential for mitigating climate change, strengthening environmental resilience, and supporting sustainable development pathways in partner countries. The OPEC Fund contributes to these outcomes through operations in priority areas as outlined in the Review and Update of OPEC Fund Strategic Framework 2030—specifically Infrastructure Development, Institutional Capacity and Climate Action—by supporting cleaner technologies, low-carbon investments, and policies that promote climate-aligned growth. This indicator aligns with SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation, and Infrastructure), SDG 11 (Sustainable Cities and Communities), SDG 12 (Responsible Consumption and Production), SDG 13 (Climate Action) and SDG 15 (Life on Land).