Riyadh, Saudi Arabia – The OPEC Fund for International Development has announced the approval of financing totaling $1.7 billion for 55 projects in 2023, with a significant focus on renewable energy initiatives. Noteworthy among them are a Nigerian solar plant and an Azerbaijan wind farm.
In line with the institution’s Climate Action Plan, nearly 60 percent of the funding was directed towards supporting renewable energy projects, according to a press release. A $25 million solar plant in Niger and a $50 million 240-megawatt wind farm in Azerbaijan were among the notable beneficiaries. Additionally, $40 million was contributed to two wind power plants in Uzbekistan, collectively adding 1 gigawatt of renewable energy capacity.
The OPEC Fund’s commitment to the energy sector extended to projects dedicated to enhancing energy security in Tanzania and Bangladesh, aligning with the Sustainable Development Goal 7 of ensuring clean and affordable energy access.
Addressing broader global challenges, the funding aimed to tackle climate change, promote social and economic resilience, and support sustainable growth. Abdulhamid Al-Khalifa, the Director-General of the organization, emphasized the impact achieved in a challenging global environment.
“In 2023, the OPEC Fund increased its impact through the delivery of development support in a challenging global environment. We grew our lending program across the board in response to strong demand by our partner countries and thanks to our success in raising additional funds from the capital markets,” stated Al-Khalifa.
He highlighted the OPEC Fund’s success in leveraging partnerships with multilateral development banks and institutions, including the Arab Coordination Group, to mobilize development support. Al-Khalifa expressed confidence in meeting the organization’s 2030 target to allocate 40 percent of all new financing to climate action.
Diversifying investments across regions, Africa received the largest share at 42 percent in 2023. The Middle East, North Africa, Europe, and Central Asia collectively accounted for 20 percent, while Latin America and the Caribbean also stood at 20 percent. Asia and the Pacific received 18 percent of the funding.
The OPEC Fund employed a strategic mix of public and private sector lending, trade finance, and grant operations. Policy-based loans claimed 31 percent of the total, with the transport and storage sector emerging as a key recipient, securing the largest share at 14 percent.