OPEC Fund approves more than $300 million in new financing and fulfills its climate action plan

Vienna, March 14, 2023 (ots /PRNewswire) – The OPEC Fund for International Development (the OPEC Fund) has approved more than $300 million in new funding in the first quarter of 2023, reflecting the institution’s commitment to fulfilling its Climate Action Plan. Three of the four projects approved by the OPEC Fund’s Governing Board directly support climate finance.

Director General Dr. Abdulhamid Alkhalifa said: “The OPEC Fund is proud to deliver on its commitments on climate, ensuring a positive impact on people and the planet. These efforts will help our partners in Africa, Asia and Latin America improve their climate governance while increasing resilience to climate change. At the same time, our work to improve access to energy and road infrastructure underscores our ongoing commitment to improving the lives of people around the world.”

In September 2022, the OPEC fund adopted its first climate action plan. The plan commits the organization to increasing its climate finance share to 40 percent of all new funding by 2030 and to mainstream climate action into the project cycle by increasing investment in climate change adaptation, mitigation and energy resilience , transport, agriculture, food, water and smart cities.

The OPEC Fund Governing Board approved the following projects:

Armenia: A €50 million loan will support measures to increase climate resilience and mitigation through a range of reforms related to energy efficiency, air quality standards and funding for environmental impact assessments.

Colombia: A $150 million loan will support strategies to foster sustainable and resilient growth by boosting the government’s ability to plan for climate action and promote the energy transition.

If: A $100 million loan will help fund a 56km ring road around one of the country’s largest cities, serving a population of more than 4 million people. Funding is also supported by a US$410,000 grant that will help with project preparation and implementation.

Seychelles: A $0.20 million loan will help the country strengthen policies to promote inclusive and sustainable growth. Planned measures include climate-related reforms in rural development, consumer protection and fisheries regulations.

Information on the OPEC Fund

The OPEC Fund for International Development The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development agency dedicated exclusively to providing financing from member countries to third countries. The organization works with partners from developing countries and the international development community to promote economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established in 1976 with a specific purpose: to advance development, strengthen communities and empower people. Our work focuses on funding projects that meet basic needs such as food, energy, infrastructure, employment (particularly related to MSMEs), clean water and sanitation, healthcare and education. To date, the OPEC Fund has committed more than US$24 billion to development projects in over 125 countries at an estimated project cost of US$190 billion. The OPEC Fund is rated AA+/ with a stable outlook by Fitch and AA, and a positive outlook by S&P. Our vision is a world where sustainable development is a reality for all.