COP28 Initiates $4.5bn Finance For African Clean Energy Projects
The COP28 President-Designate, Dr Sultan Al Jaber, has disclosed a United Arab Emirates finance initiative set to bring over $4.5bn to help unlock Africa’s clean energy potential.
This was disclosed during a keynote address at the inaugural African Climate Summit in Nairobi, Kenya.
It noted that the initiative brings together vital public, private, and development capital from UAE institutions, notably from Abu Dhabi Fund for Development, Etihad Credit Insurance, Masdar, and AMEA Power.
In a statement, it also disclosed that Africa50, which is an investment platform established by African governments and the Africa Development Bank, has joined the UAE finance initiative.
The COP28 President Designate has further requested for the global tripling of renewable energy by 2030 and has pushed to make finance more available, accessible, and affordable.
According to him, “To reduce barriers to investment, the President-Designate highlighted multiple action points that require the coordinated efforts of African leaders and the international community."
He also noted that, “This initiative builds on the UAE’s track record of commercially driven, innovative blended finance solutions that can be deployed to promote the adoption of clean energy in emerging and developing nations.”
He added that, “The initiative will prioritise investments in countries across Africa with clear transition strategies, enhanced regulatory frameworks and a master plan for developing grid infrastructure that integrates supply and demand.”
The statement disclosed that in sub-Saharan Africa alone, 600 million people live without access to electricity. Delivering greater access to clean energy will drive social and economic development but currently investment in African renewables represents only 2 per cent of the global total, and less than a quarter of the $60bn a year the continent needs by 2030.
It stated, “The initiative will sit under the umbrella of Etihad 7, a development platform launched by the UAE at Abu Dhabi Sustainability Week in 2022 and championed by the Ministry of Foreign Affairs. Announced in 2022, Etihad 7 aims to provide 100 million people across the African continent with clean electricity by 2035."
The Abu Dhabi Fund for Development and the Etihad Credit Insurance, are kick-starting this initiative through funding the initial investment intended to catalyse private sector action, it said.
However, it further stated that ADFD was supported with $1bn of financial assistance to address basic infrastructure needs, offer innovative finance solutions and increase mobilisation of private investments.