The Arab Coordination Group will allocate $10 billion through 2030 to facilitate the energy transition, the group said on Tuesday during the COP28 meeting.
The $10 billion in funds is designed to drive "a comprehensive and affordable transition to renewable energy in developing countries," the ACG said on Tuesday.
The funds are part of the group's previous pledge of $24 billion.
The ACG will raise funds through the use of green bonds, blended finance, and risk mitigation tools. The group will also support universal access to clean energy and work to enhance resilience to climate change in the food, transport, water, and urban systems sectors.
According to the group's statement, the ACG allocate $15.7 billion last year to 500 financing operations across 80 countries, which went toward "addressing fundamental challenges faced by societies in developing countries, such as food insecurity and climate change." The largest share of commitments by ACG members went to the energy sector.
The Arab Coordination Group (ACG) is a strategic alliance that provides a coordinated response to development finance, comprising four bilateral and six multilateral Arab development financial institutions: Abu Dhabi Fund for Development, Arab Bank for Economic Development in Africa, Arab Fund for Economic and Social Development, Arab Gulf Program for Development, Arab Monetary Fund, Islamic Development Bank, Kuwait Fund for Arab Economic Development, OPEC Fund for International Development, Qatar Fund for Development, and Saudi Fund for Development. It is the second-largest grouping of development finance institutes in the world.
The announcement comes as the UN's COP28 meeting shines a spotlight on climate financing and facilitating the energy transition.
"The delivery of a sustainable and equitable energy transition requires stronger collaboration and joint action. The ACG has the capacity to mobilise substantial financing, boasts nearly 50 years of South-South cooperation and has a proven track-record in advancing sustainable development in its partner countries. The OPEC Fund is proud to contribute to this highly welcome ACG initiative through its own Climate Action Plan," OPEC Fund Director-General Abdulhamid Alkhalifa said in a statement.
By Julianne Geiger for Oilprice.com
Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group. More
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