The Organization of Petroleum Exporting Countries (OPEC) released the sum of $1.7 billion to support 55 projects from its Fund for International Development in 2023, according to a report from the global oil cartel.
Aligned with the multilateral development finance institution’s Climate Action Plan, the oil cartel’s support for renewable energy projects constituted nearly 60 per cent of all lending in the energy sector in 2023
The fund supported a $25 million solar plant in Nigeria, a $50 million 240-megawatt wind farm in Azerbaijan, and contributed $40 million to two wind power plants, totaling 1 gigawatt of renewable energy capacity in Uzbekistan.
The OPEC Fund’s investments in the energy sector included projects dedicated to enhancing energy security in Tanzania and Bangladesh, aligning with the objectives of Sustainable Development Goal (SDG) 7 ensuring clean and affordable energy access.
Additionally, the allocated capital aimed to tackle pressing issues such as climate change, social and economic resilience, and sustainable growth.
Speaking on the interventions, the Director-General of OPEC Fund for International Development (OFID), Dr. Abdulhamid Al-Khalifa, highlighted the significant impact achieved amid a challenging global environment.
He said: “In 2023, the OPEC Fund increased its impact through the delivery of development support in a challenging global environment. We grew our lending program across the board in response to strong demand by our partner countries and thanks to our success in raising additional funds from the capital markets.
“We are well on track with our 2030 target to commit 40 per cent of all new financing to climate action”, he added
Al-Khalifa spoke on the organization’s success in leveraging partnerships with multilateral development banks and institutions, such as the Arab Coordination Group, to mobilize development support.
In 2023, the OPEC Fund showcased robust results across diverse regions, with Africa receiving the largest share of investments at 42 per cent
The Middle East, North Africa, Europe, and Central Asia collectively accounted for 20 per cent while Latin America and the Caribbean also stood at 20 per cent Asia and the Pacific received 18 per cent.
The organization employed a mix of public and private sector lending, trade finance, and grant operations.
The oil cartel lending programme’s focal point last year was policy-based loans, constituting 31 per cent of the total even as transport and storage sector emerged as a key recipient of support, accounting for the largest share at 14 per cent.
