In 2023, the Organization of Petroleum Exporting Countries (OPEC) Fund for International Development allocated $1.7 billion to 55 projects, including a Nigerian solar plant and an Azerbaijan wind farm,leadership reports.
With a focus on its Climate Action Plan, nearly 60 percent of the fund’s lending in the energy sector went to renewable energy projects, aligning with global efforts to combat climate change.
Among these projects were a $25 million solar plant in Niger, a $50 million 240-megawatt wind farm in Azerbaijan, and $40 million investment in two wind power plants in Uzbekistan, collectively contributing 1 gigawatt of renewable energy capacity.
In addition to promoting clean energy, the OPEC Fund supported initiatives to enhance energy security in Tanzania and Bangladesh, in line with Sustainable Development Goal 7.
Abdulhamid Al-Khalifa, the organization’s director-general, noted the significant impact achieved despite global challenges, highlighting increased lending and successful partnerships with multilateral development banks.
The OPEC Fund is on track to commit 40 percent of new financing to climate action by 2030, leveraging partnerships such as the Arab Coordination Group.
Africa received the largest share of investments at 42 percent, followed by the Middle East, North Africa, Europe, and Central Asia collectively at 20 percent, and Latin America, the Caribbean, Asia, and the Pacific each receiving 18 percent.
The organization employed various financing mechanisms, including public and private sector lending, trade finance, and grants. Policy-based loans accounted for 31 percent of the lending program, with the transport and storage sector receiving the largest share of support at 14 percent.