Today's Edition
Hussam Abdelnabi (Abu Dhabi)
Dr. Ahmed Badr, Director of Project Financing Facilitation at the International Renewable Energy Agency (IRENA), confirmed that the UAE is among the most advanced countries in the world in terms of per capita investment in renewable energy and supporting investments in the renewable energy sector.
In an exclusive interview with Aletihad, Dr. Badr stated that the Energy Transition Acceleration Platform (ETAF) now has $1.25 billion in allocated funding, with the expectation that this figure will reach $3 billion by the time the 28th Conference of the Parties to the UN Framework Convention on Climate Change (COP28) is held in Dubai in November.
By 2030, the sum could double to $7 billion, he said. The ETAF is a global climate-focused financing platform launched by the International Renewable Energy Agency (IRENA) with the aim of raising the necessary funds to expand the financing of renewable energy projects in developing countries by 2030 during COP27 in Sharm El-Sheikh. The UAE’s contributed $400 million to the ETAF, with an additional $350 million contribution to the investment platform launched by the agency, Badr said.
The platform helps finance viable projects and reduce investment risks in developing countries by providing innovative financing solutions, matching the right partners, and offering technical support and facilitations for project completion.
The ETAF aims to raise capital to expand the adoption of energy transition technologies based on renewable energy sources in emerging markets and developing economies by 2030. Additionally, it promotes a focus on technical and financial feasibility studies to present a successful set of projects, he added.
In response to a question about the criteria for selecting renewable energy projects financed by the ETAF platform, Badr answered that the platform is open to all member countries, any of which can apply for project financing.
The financing decision is made based on financial criteria to ensure the project is funded securely, both for the borrower and the lender, while achieving the Millennium objectives and the country’s individual climate targets, he explained.
Funding GapBadr estimated that around $150 trillion in global investments is needed to achieve the 2050 carbon neutrality targets, as mentioned in the report on global energy transition forecasts for 2023. He emphasised that the funding gap is increasing year after year due to the escalating negative impacts of climate change.
The required global investments last year were $120 trillion, both for adaptation to climate change and for reducing the climatic impact. He cited remarks by Antonio Guterres, the Secretary-General of the United Nations, which emphasise that the world is currently undergoing a boiling phase, not just climate change.
This is reflected in the increased fires during the summer in Europe and the cyclones and volcanoes witnessed in various parts of the world. At the same time, investments in renewable energy projects reached $750 billion by the end of 2021, Dr. Badr said, adding that the African continent suffers the most from a lack of investment in renewable energy projects.Project FinancingBadr mentioned that IRENA has contributed to the financing of several major projects.
For example, the Mohamed bin Zayed Solar Energy Complex in Togo, which is the largest renewable energy project in West Africa, also represents a collaborative effort between the Abu Dhabi Development Fund and IRENA. The project is aimed at supporting renewable energy sources, their development, and simultaneously stimulating sustainable economic development in developing countries around the world.
He also highlighted that IRENA, headquartered in Abu Dhabi, is an international governmental organisation that supports countries in their transition to a sustainable energy future. It serves as the primary platform for international cooperation and is a center of excellence for policies, technology, resources, and financial knowledge in the field of renewable energy.
IRENA promotes the widespread and sustainable adoption and use of all forms of renewable energy, including bioenergy, geothermal energy, hydropower, ocean energy, solar, and wind, aiming to achieve sustainable development, provide energy access opportunities, ensure energy security, and achieve economic growth and prosperity by reducing carbon emissions.
