Three new partners have officially joined the Energy Transition Accelerator Financing Platform (ETAF), IRENA’s global climate finance program aimed at mobilizing capital to scale up renewable project funding in developing countries by 2030.
Cooperation agreements with the Asian Infrastructure Investment Bank (AIIB), Masdar and Swiss Re were signed on-site at the UN Climate Change Conference COP27 in Sharm El Sheikh. AIIB intends to deploy USD300 million as part of the relationship. Masdar intends to contribute a potential investment of up to USD200 million in the program. Swiss Re can help de-risk these critical investments, with insurance solutions and risk insights.
Joining the founding partner and pioneer investor Abu Dhabi Fund for Development (ADFD) who already anchored an investment of USD400 million, ETAF closes on securing a minimum of USD1 billion in total funding to start Calls for Projects as of today.
The Inter-American Development Bank (IDB) announced its interest in becoming a partner in ETAF and endeavor to co-finance up to USD100 million of ETAF projects in renewable energy and decarbonization technologies in Latin America and the Caribbean (LAC) region.
The official announcement took place in the presence of IRENA’s Director-General Francesco La Camera, His Excellency Majid Al Suwaidi, Director-General of the UAE-hosted COP28, His Excellency Mohammed Saif Al Suwaidi, Director-General of ADFD, AIIB President Liqun Jin, Masdar’s CEO Mohamed Jameel Al Ramahi, Swiss Re Chair of Public Sector Solutions Veronica Scotti and IDB’s Graham Watkins, Division Chief, Climate Change and Sustainable Development.
IRENA’s Director-General Francesco La Camera said: “Today’s pledges will allow IRENA to facilitate capital mobilization to accelerate the energy transition in developing countries. As a truly global finance platform, ETAF will change the investment landscape in emerging markets in response to the climate crisis. Together with our partners, we can channel international financing to scale renewable energy projects to secure energy to people and communities in most need on the ground and advance the transition to foster socioeconomic impact and climate resilience.”
The ETAF Platform, managed by IRENA, leverages its partners’ proven track record in innovative financial solutions to deliver impact to IRENA’s member countries. ETAF also benefits from the UAE’s climate investment leadership in the run-up to COP28 hosted by the UAE in 2023.
His Excellency Mohammed Saif Al Suwaidi, Director-General of ADFD said: “We are proud to be part of the ETAF initiative, as it supports the UAE’s strategic vision to unite global efforts to address climate change through the promotion of renewable energy. Greater support to this cause will accelerate mobilization of green financing, which in turn will hasten the pace of energy transformation in the developing world.”
AIIB President Jin Liqun added: “Our collaboration with ETAF marks an important step forward for AIIB. This collaboration reflects our commitment to unlock new capital through innovative financing tools, advance the climate agenda and deliver value to our most vulnerable member economies. As a climate-centric, partnerships-focused Bank, we eagerly anticipate an impactful relationship with fellow members of the platform, and look forward to financing a greener, more sustainable future for all.”
Masdar CEO Mohamed Jameel Al Ramahi said: “I am pleased to formalize Masdar’s commitment to the ETAF platform today through the signing of this cooperation agreement. The ETAF platform will leverage Masdar’s technical and commercial expertise and capital, with a potential investment from Masdar of up to USD200 million in the program, to deliver clean energy to developing countries. The platform will help provide emerging economies with the tools necessary to realize their clean energy potential, and today’s signing underscores Masdar’s commitment to supporting developing nations from around the world to achieve their clean energy objectives.”
Veronica Scotti, Chairperson Swiss Re Public Sector Solutions added: “This partnership is consistent with our vision of helping to make the world more resilient. As a leading provider of insurance solutions and risk insights we can help de-risk these critical investments.”
IDB President a.i Reina Irene Mejía Chacón added: “IDB is delighted to become a partner under the ETAF initiative and continue the strong and productive relationship that it has built with IRENA in Latin America and the Caribbean and looks forward to further collaborate. Platforms such as this one are key to facilitate capital mobilization to scale up the development of renewable energy projects.”
Launched by IRENA with strategic support from the UAE at COP26 in Glasgow, ETAF is an open-ended platform that will source projects on an ongoing basis, aligned with the implementation of the Paris Agreement and Sustainable Development Goals.
It will help financing feasible projects and mitigate investment risks in developing countries through innovative financing solutions, matchmaking of project partners, technical assistance, and project facilitation.
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank whose mission is financing the Infrastructure for Tomorrow—infrastructure with sustainability at its core. We began operations in Beijing in January 2016 and have since grown to 105 approved members worldwide. We are capitalized at USD100 billion and Triple-A-rated by the major international credit rating agencies. Collaborating with partners, AIIB meets clients’ needs by unlocking new capital and investing in infrastructure that is green, technology-enabled and promotes regional connectivity.
IRENA is the lead intergovernmental agency for the global energy transformation that supports countries in their transition to a sustainable energy future and serves as the principal platform for international co-operation, a centre of excellence, and a repository of policy, technology, resource and financial knowledge on renewable energy. With 168 Members (167 States and the European Union) and 16 additional countries in the accession process and actively engaged, IRENA promotes the widespread adoption and sustainable use of all forms of renewable energy in the pursuit of sustainable development, energy access, energy security and low-carbon economic growth and prosperity.