IRENA, UAE launch global climate finance facility

The United Arab Emirates (UAE) and the International Renewable Energy Agency (IRENA) have announced a new global climate finance facility to accelerate the transition to renewable energy in developing countries.

The UAE committed $400 million (€346 million) in funding provided by the Abu Dhabi Fund for Development towards the Energy Transition Accelerator Financing (ETAF) Platform’s goal of securing a minimum of $1 billion (€865 million) in total funding.

ETAF’s formal launch took place on the sidelines of COP26 in Glasgow, in the presence of Sheikh Abdullah bin Zayed al Nahyan, UAE Minister of Foreign Affairs and International Cooperation, together with the Prime Minister of Antigua and Barbuda Gaston Browne, President of the Maldives Ibrahim Mohamed Solih, and President of Togo, Faure Gnassingbè and UAE Climate Envoy Sultan Al Jaber.

“The UAE views development aid and climate action as powerful catalysts for economic growth, both domestically and internationally,” said Sultan Al Jaber.

“Today’s announcement will help to advance the economies of partner countries by providing reliable, low-cost renewable energy for businesses, industry, and homes.

“We are proud of this significant new contribution by the Abu Dhabi Fund for Development to accelerate climate action and deliver immediate economic benefits in the process. This is the kind of initiative that combines partnership, policy and finance to create tangible progress, and it is this focus on practical results that have motivated the UAE to offer to host COP28 in 2023.”

Through co-financing, EFAT will aim to mobilise a further $2 billion (€1.73 billion) in energy transition investments, targeting a total deployment of 1.5 GW of clean renewable energy generation and storage by 2030.

ETAF will be managed by IRENA from its Abu Dhabi headquarters, capitalising on the nation’s climate finance market and renewable energy innovation infrastructure. The new platform will help mitigate investment risks and finance renewable energy projects in developing countries that may otherwise struggle to secure sufficient capital.

Francesco La Camera, director-general of IRENA, commented: “This new investment platform reflects the UAE’s commitment to shaping a sustainable future, and IRENA’s efforts to serve its over 180 member countries as an indispensable energy transformation partner.

“We encourage multilateral development banks, international financial institutions, governments, and private sector actors to join us in bolstering sustainable development efforts.”

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