Climate Finance Report 2025

FINANCE CLIMATE REPORT 2025

Climate Action in Addressing Development Challenges

THE OPEC FUND for International Development

opecfund.org

Table of Contents

Executive Summary

Preface

Foreword

2024 Snapshot

Chapter 1 | ABOUT THE OPEC FUND

Chapter 2 | STRATEGIC FRAMEWORK & COMMITMENT

The Growing Climate Imperative

Global Climate Finance Needs

Chapter 3 | THE OPEC FUND CLIMATE ACTION PLAN

OPEC Fund’s Partnership-Based Approach to Climate Mitigation and Adaptation

New Partnerships and Commitments in 2024

Chapter 4 | TRACKING OPEC FUND’S CLIMATE FINANCE

Climate Finance 2018-2023

Climate Finance 2024

The Comparative Picture

Chapter 5 | UPDATE ON ROADMAP 2030

Chapter 6 | PROJECTS CONTRIBUTING TO THE OPEC FUND’S CLIMATE FINANCE 30 Bangladesh: Green and SME Financing 32 Egypt: Gulf of Suez Wind Power Plant 35 Honduras: Strengthening Agri-food Systems 38 Tanzania: Climate Smart Smallholder Dairy Transformation 42 Türkiye: Climate Finance Facility 46 Uzbekistan: Inclusive and Resilient Market Economy Development 51

ANNEX

Climate Finance Methodology

OPEC Fund Climate Finance Portfolio 2024

OPEC Fund Climate Finance Analysis 2018-2024

List of Acronyms

Footnotes

Acknowledgements

Imprint

EXECUTIVE SUMMARY

The OPEC Fund for International Development is scaling up its efforts to support sustainable, climate-resilient development in its partner countries. Guided by its Strategic Framework 2030 and Climate Action Plan, the OPEC Fund is embedding climate considerations into its operations and aligning its portfolio with the goals of the Paris Agreement. This report marks a milestone for the in- stitution’s commitment to transparency and accountability, offering a detailed account of its climate finance performance from 2018 through 2024.

The global development context has grown increasingly complex, with intersecting crises and accelerating climate risks threatening progress toward the delivery of the Sus- tainable Development Goals (SDGs). In response, the OPEC Fund is intensifying its climate finance, targeting both mit- igation and adaptation, particularly in low- and middle- income countries where climate vulnerability is at its highest. In 2024, the OPEC Fund marked a record US$863.7 million in climate finance, representing 39.3 percent of its total annual approvals, up from 34.4 percent in 2023 and 20 percent during the 2018-2021 baseline period. This increase reflects strong institutional momentum and strategic alignment with international climate finance targets. Public sector opera- tions continued to dominate (89.4 percent), while private sector participation remains a priority for future scaling.

adaptation investments. Agriculture received US$178.7 million in loans, while energy finance reached US$206.9 million, re- inforcing the OPEC Fund’s dual focus on rural resilience and clean energy transition. The institution’s regional climate finance footprint also ex- panded, with notable increases in the Middle East, Eastern Europe, Central Asia (MEC) and Sub-Saharan Africa — together accounting for the majority of climate-related financing in 2024.

In line with its Climate Action Plan, the OPEC Fund is deliver- ing targeted impact through flagship partnerships, including:

• The Climate Finance and Energy Innovation Hub with Sus- tainable Energy for All (SEforALL) and the United Nations Capital Development Fund (UNCDF),

Sectoral allocations in 2024 saw a significant shift toward agriculture and cross-cutting (“Other”) sectors due to an increase of policy-based lending (PBL), driven by a rise in

• The Food Security and Climate Adaptation Facility with the World Food Programme (WFP),

• The Nature Solutions Finance Hub with the Asian Devel- opment Bank (ADB) and the Arab Coordination Group (ACG),

Tanzania, Türkiye and Uzbekistan, each showcasing diverse pathways to climate mitigation and adaptation. These operations reflect the OPEC Fund’s growing exper- tise in applying joint multilateral development bank (MDB) climate finance tracking methodologies and in support- ing partner countries’ nationally determined contributions (NDCs). Starting in 2025, all new OPEC Fund projects (excluding trade finance) will undergo climate screening. The institu- tion will also expand support for low-carbon transitions, sus- tainable infrastructure and climate-smart agriculture, while strengthening its role as a South-South cooperation partner and knowledge platform. As global climate finance needs continue to rise, the OPEC Fund stands committed to supporting its partners in navigating the dual challenge of development and climate resilience — through inclusive, transparent and high-impact investments.

• The newly launched Island Resilience Facility, supporting Small Island Developing States (SIDS), and

• The OPEC Fund’s US$1 billion pledge to the Global Drought Resilience Partnership launched at the United Nations Convention to Combat Desertification (UNCCD) COP16 in Riyadh, Saudi Arabia, in December 2024. These initiatives enhance climate resilience, strengthen food systems, promote clean energy and foster nature-based solutions. The OPEC Fund also increasingly leverages in- novative financing tools such as sustainability bonds and policy-based loans to catalyze systemic change.

The Climate Finance Report features in-depth analy- ses of key projects from Bangladesh, Egypt, Honduras,

PREFACE

“The OPEC Fund will continue to work hand in hand with its partners to mobilize the resources, innovation and political will required for a sustainable, inclusive and climate-resilient future.”

The world continues to face a defining challenge — one that tests our resolve, resources and ability to act in concert. Climate change is not a distant threat but an immediate crisis, reshaping economies, displacing communities and reversing decades of development gains — particularly in partner countries across the Global South.

In response, the OPEC Fund has sharpened its focus on climate action, moving from acknowledgment of the challenge to concrete, scaled-up solutions. Over the past year, we have bolstered our climate ambition, strengthened our partnerships and further integrated climate considerations throughout our financing activities. This report demonstrates our evolving role in aligning with the Paris Agreement and the Sustainable Development Goals. A key highlight of 2024 was the launch of major new initiatives aimed at building climate resilience, including the Island Resilience Facility for Small Island Developing States and our US$1 billion pledge under the Global Drought Resilience Partnership. These steps underscore our commitment to stand with countries most at risk, supporting localized solutions that can be replicated and scaled up.

Looking ahead, we are taking bolder steps toward our climate change efforts — beginning in 2025, all new projects are undergoing systematic climate screening to maximize impact, with tailored approaches applied to trade finance.

While we recognize the progress made, we are mindful that much more remains to be done. The OPEC Fund will continue to work hand in hand with its partners to mobilize the resources, innovation and political will required for a sustainable, inclusive and climate-resilient future.

ABDULHAMID ALKHALIFA President, OPEC Fund

FOREWORD

“We aim to catalyze systemic change by unlocking investment, supporting policy reforms and ensuring that development gains are sustainable and inclusive.”

Global temperatures continue to climb, bringing mounting threats — from intensifying floods to droughts, wildfires and storms — that imperil communities, particularly in vulnerable regions. As the Earth heats up, we risk crossing a range of tipping points, with dire knock-on effects for people and planet alike.

Against this backdrop, the OPEC Fund has ramped up its climate response measures. Since adopting our Climate Action Plan in 2022, we have meticulously tracked and expanded our climate finance, striving to balance mitigation and adaptation efforts in line with our partner countries’ needs.

In 2024, we approved a record US$863.7 million in climate finance — representing 39.3 percent of our total financing for the year. Projects spanned diverse sectors, including renewable energy in Egypt and Türkiye, food security and climate-smart agriculture in Honduras and broad-based policy reform for sustainable growth in Uzbekistan.

We have also undertaken rigorous internal reforms to embed climate considerations into each stage of project design and implementation. Since the beginning of 2025 all new operations (excluding trade finance) are being screened with enhanced climate metrics. We also use collaborative platforms such as the Climate Finance and Energy Innovation Hub to continue to leverage partnerships for broader systemic impact.

This report highlights our progress, lessons learned and priorities moving forward. Our ambition extends beyond financing individual projects. We aim to catalyze systemic change by unlocking investment, supporting policy reforms and ensuring that development gains are sustainable and inclusive.

The OPEC Fund remains committed to working alongside our partners in driving meaningful climate action at scale.

MUSAB ALOMAR Vice President Strategy, OPEC Fund

Our highlights at a glance in numbers 2024 SNAPSHOT

Financing approved by the OPEC Fund:

Projects:

US$ 2.2 bn

Of 49 projects, 44 (89.8 % ) contributed to climate finance, amounting to US$ 863.7 million, representing 39.3 % of the year’s approvals. This reflects a strengthened commitment to tackling climate change.

Mitigation & Adaptation Finance:

Both mitigation and adaptation finance increased in 2024 compared to previous years, highlighting a more balanced approach that addresses both the root causes of climate change and its impacts.

60.8 % of the total climate finance supported mitigation activities US$ 525 mn

39.2 % of the total climate finance supported adaptation measures US$ 338.7 mn

Public & Private Sector Investments:

89.4 %

10.6 %

of the total climate finance was accounted for by public sector investments

of the total climate finance was accounted for by private sector investments

1. ABOUT THE OPEC FUND

The OPEC Fund envisions a future where sustainable development is a reality for all. Guided by this vision, the institution is building on its longstanding legacy in fostering development and reducing poverty by focusing on three interlinked strategic objectives: Promoting sustainable development through South-South cooperation, driving climate innovation and a just transition and building resilient and equitable societies.

Chapter 1 | ABOUT THE OPEC FUND

OUR VISION

As part of the global development finance architecture, the OPEC Fund remains steadfast in its commitment to the goals of the Paris Agreement. In line with its Strategic Framework 2030 the OPEC Fund has adopted a Climate Action Plan to systematically scale up climate-aligned investments across its portfolio. With this plan the institution aims to embed climate considerations into project design, implementation and financing decisions. Building on this momentum, the OPEC Fund began report- ing its climate finance in accordance with the harmonized multilateral development bank (MDB) methodology in 2022. In a milestone moment the OPEC Fund published its inau- gural Climate Finance Report at the UN Climate Change Conference COP29 in 2024 in Dubai, providing a compre- hensive overview of climate finance commitments from 2018 to 2023. The inaugural report marked an important step in reinforcing the OPEC Fund’s commitment to transparency, accountability and alignment with international best prac- tices. Looking ahead, the institution will continue strength- ening its climate finance tracking systems and collaborating with partners across the Global South to deliver high-impact and climate-resilient development solutions.

A world where sustainable development is a reality for all.

Sustainable development challenges are becoming increas- ingly complex and interdependent. As the world continues to recover from the multifaceted impacts of various crises, it is increasingly evident that achieving the Sustainable Development Goals (SDGs) by 2030 requires intensified and collective action. At the same time the growing impacts of climate change are undermining hard-won development gains, making it critical to address climate and development objectives in tandem. As climate finance plays a central role in delivering global goals, robust methodologies for tracking financial flows are essential. Over the years, climate finance tracking has pro- gressed significantly, incorporating more granular eligibility criteria, improved income-level classifications and updated principles for both mitigation and adaptation finance. The most recent updates, rolled out in 2023 1 , represent a contin- ued evolution toward more robust methodologies, including enhanced approaches to tracking adaptation investments and assessing climate outcomes. MDBs are also advancing work on greenhouse gas (GHG) accounting, green bond impact reporting and climate resilience metrics to better capture the transformative potential of climate investments.

OUR MISSION

Together we drive development, strengthen communities and empower people.

2. STRATEGIC FRAMEWORK & COMMITMENT

Approved in 2019, the OPEC Fund’s long-term plan, the Strategic Framework 2030, sets out the vision for the institution to become a more dynamic, financially sustainable and responsive multilateral development bank. The strategy focuses on delivering enhanced support to low- and middle-income countries, addressing urgent development and climate challenges with a focus on those most vulnerable. This vision is grounded in the OPEC Fund’s longstanding commitment to South-South cooperation, fostering collaboration and knowledge exchange among developing nations.

Chapter 2 | STRATEGIC FRAMEWORK & COMMITMENT

Under the Strategic Framework 2030 the OPEC Fund’s financing solutions are channeled across a set of operational priorities that respond to the development needs of its partner countries:

Building Infrastructure

Developing Human Capital

Institutional modernization, economic and disaster resilience, public finances and policy support Enhancing Institutional Capacity

Promoting Private Sector & Trade

Improved connectivity, water & sanitation and digital infrastructure, enhanced access to energy and social infrastructure

Human capital development, social inclusion, health, education and training

Support for private sector development, access to financial services, trade finance & industry

CROSS-CUTTING PRIORITIES

Response to rising Food Security and Rural Development challenges • US$2 billion over 2025-2030 • Continued prioritization as a cross cutting theme of operations to 2030 Bolstering Food Security

Driving Climate Action

Support for Climate Mitigation, Adaptation & Nature Based Solutions

• 25% of operations by 2025 • 40% of operations by 2030

These operational priorities represent an integrated approach to sustainable development. They reflect the institution’s intent to address both the immediate needs and structural constraints faced by partners, while enabling long-term trans- formation and resilience.

Crucially, climate action serves as a cross-cutting priority across all areas of operations. Recognizing the interde- pendence between climate and development, the OPEC Fund’s Climate Action Plan commits to increasing the proportion of climate finance in its overall portfolio to 40 percent by 2030 and to mainstreaming climate consid- erations throughout the project cycle. While this target remains a cornerstone of our strategic direction, we have

drawn important lessons from recent years and are in the process of updating our targets to remain ambitious and responsive to evolving global needs. This strategic orientation ensures that climate resilience and low-carbon development are embedded in all sectors of engagement — from sustainable agriculture and energy transitions to infrastructure investment, institutional reform and private sector growth.

Chapter 2 | STRATEGIC FRAMEWORK & COMMITMENT

In line with this integrated approach, the OPEC Fund’s pro- jects portfolio is increasingly aligned with climate-responsive development pathways. Infrastructure investments are de- signed to be adaptive and sustainable; human capital initi- atives promote skills and education aligned with climate re- silience; institutional capacity building supports countries in managing climate risks and integrating environmental con- siderations into public policy; and private sector and trade interventions foster green innovation, competitiveness and sustainable value chains. As a forward-looking strategy, the Strategic Framework 2030 focuses on delivering impactful results through inno- vative financing and capacity-building. Recognizing that climate change introduces new uncertainties, the institution now applies environmental and social screening to its invest- ments. It is also rolling out mechanisms for climate screen- ing to evaluate climate-related risks. These measures rein- force the OPEC Fund’s role as a dependable partner, helping developing countries advance on a path of inclusive and climate-resilient growth.

Global South. Despite contributing the least to global emis- sions, they are bearing the brunt of climate impacts. Many of these countries struggle with weak economies, poor access to energy and infrastructure and have large populations that lack basic services and job opportunities. The Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report 2 underscores this global imbal- ance. The report highlights that the wealthiest 10 percent of households account for 34-45 percent of global consump- tion-based CO 2 emissions, while the poorest 50 percent con- tribute just 13-15 percent. Globally, the impacts of climate change are becoming more frequent, more severe and more expensive. Rising tem- peratures are leading to unpredictable weather along with growing risks such as droughts, floods and powerful storms. These challenges threaten both social and economic pro- gress. The IPCC’s Sixth Assessment Report highlights the un- equal impact of climate change, stressing the need for more investment in adaptation and resilience — especially in the Global South. In many ways, the climate crisis affects Least Developed Countries (LDCs) and SIDS the most. With fragile econo- mies and limited infrastructure these countries often lack the resources needed to manage rising temperatures,

The Growing Climate Imperative

The world faces a dual imperative: Reducing GHG emissions while building resilience to the accelerating impacts of climate change. This challenge is especially acute for countries in the

Chapter 2 | STRATEGIC FRAMEWORK & COMMITMENT

unpredictable rainfall and more frequent natural disasters. SIDS face growing threats from sea level rise and coastal erosion, which damage critical infrastructure, reduce fresh- water availability and put entire communities at risk of dis- placement. At the same time, LDCs — many of which de- pend heavily on climate-sensitive sectors like agriculture — can see hard-won development gains reversed by extreme droughts, floods and the spread of climate-related diseases. These overlapping vulnerabilities create an urgent need for international support in both adaptation and mitiga- tion efforts, highlighting the importance of accessible and effective climate finance to strengthen resilience and protect long-term development progress.

growing commitments current financing remains inadequate, particularly for adaptation efforts in vulnerable regions.

At the 2024 World Bank Spring Meetings experts estimated that climate finance needs already stand at US$8 trillion per year, rising to US$10 trillion annually beyond 2030. This surge reflects not only the increasing urgency of emission reductions but also the growing need for adaptation and resilience as climate disasters become more frequent and severe. Floods, droughts, hurricanes and heatwaves are already causing significant economic losses and humanita rian crises, reinforcing the need for urgent action. Recognizing this persistent shortfall the international com- munity has taken steps to scale up climate finance. At COP29 in 2024 countries agreed on the New Collective Quantified Goal on Climate Finance, committing developed nations to mobilize US$300 billion per year by 2035 for develop- ing countries. 3 This represents a threefold increase over the previous US$100 billion annual goal set in 2009, signaling a higher level of ambition. However, this amount still covers only a fraction of the US$2.4 trillion annual financing needed for EMDEs and is far below the estimated US$8–10 trillion required globally per year. Bridging the climate finance gap will require significantly greater private sector mobilization, stronger international collaboration and innovative financing mechanisms to drive investments at scale.

Global Climate Finance Needs

Global climate finance has grown significantly in recent years, yet it remains far below what is needed. According to the Climate Policy Initiative (CPI), annual climate finance levels nearly doubled from US$653 billion in 2019–2020 to an average of US$1.3 trillion in 2021–2022. While this growth is encouraging, funding must increase fivefold to align with the 1.5°C target. IPCC estimates that global climate finance needs range from US$5 trillion to US$12 trillion per year through 2050, with emerging markets and developing economies (EMDEs), excluding China, requiring US$2.4 trillion annually by 2030 for climate and nature-related investments. Despite

3. THE OPEC FUND CLIMATE ACTION PLAN

In September 2022, the OPEC Fund approved a dedicated Climate Action Plan (CAP) as part of its evolving commitment to address the growing vulnerability of ecosystems and communities to climate change. The plan outlines how the organization will systematically identify, fund and account for climate adaptation and mitigation projects in alignment with international best practices.

Recognizing that climate finance still falls short of the scale required to meet global targets the OPEC Fund positioned itself as an enabler of equitable climate action in low- and middle-income countries. This approach has significantly accelerated climate finance contributions by the OPEC Fund, which by the end of 2024 had nearly achieved its climate finance targets for 2030. This success shows effective stra- tegic alignment with international climate finance efforts and heightened institutional capacity. Under the CAP, strategic investments remain focused on energy, infrastructure, agriculture, water and sanitation, emphasizing renewable energy and climate-smart agri- cultural practices. Additionally, the OPEC Fund prioritizes nature-based solutions, aligning with the global biodiversity objectives discussed at the UN Biodiversity Summit COP16 in Cali, Colombia, which underscores the integration of climate resilience and biodiversity conservation.

— especially in African and small-island economies that face urgent climate threats. At the same time, the insti- tution will continue investing in sustainable energy and infrastructure to address the emissions gap in partner countries. The OPEC Fund continues leveraging innovative financing mechanisms, including sustainability bonds and blended finance approaches, to mobilize private capital effectively. Strengthening partnerships and scaling up private sector involvement remain central to achieving sustainable and re- silient infrastructure goals.

OPEC Fund’s Partnership-Based Approach to Climate Mitigation and Adaptation

The OPEC Fund’s strategy for addressing climate change mitigation and adaptation is founded on a robust partner- ship approach designed to enhance development impact through targeted collaboration. This approach includes three major initiatives:

While the OPEC Fund supports mitigation and adapta- tion, it sees a clear need to scale up adaptation finance

Chapter 3 | THE OPEC FUND CLIMATE ACTION PLAN

New Partnerships and Commitments in 2024

Climate Finance and Energy Innovation Hub

Established in June 2022 in collaboration with SEforALL and UNCDF, the hub accelerates access to modern energy services and facilitates the energy transition across partner countries. It prioritizes the deployment of low-emission and affordable energy solutions, such as clean cooking technol- ogies and decentralized renewable energy systems, along- side tailored advisory services. Through this integrated approach the facility significantly contributes to poverty alleviation, improved health outcomes and enhanced energy security.

In 2024, building on extensive stakeholder consultations conducted with SIDS, recent COPs and UN Subsidiary Bodies meetings, the OPEC Fund launched the Island Re- silience Facility, reaffirming its commitment to SIDS. Rec- ognizing the significant barriers that these island nations face in accessing climate finance, the facility provides ded- icated technical assistance focused explicitly on building local capacity and supporting project development. It pri- oritizes helping SIDS formulate robust and bankable project proposals designed to effectively respond to their urgent climate adaptation and mitigation requirements. Through targeted resources for feasibility studies, technical training and institutional strengthening, the facility empowers island communities and authorities to strategically design and im- plement critical interventions, ensuring sustained resilience in the face of climate change. Reflecting its increased engagement in global climate ef- forts, in 2024 the OPEC Fund became an active member of the Global Drought Resilience Partnership during UNCCD COP16 in Riyadh, Saudi Arabia, pledging US$1 billion toward drought mitigation and resilience measures. This partner- ship addresses the escalating threats posed by droughts — especially in arid and semi-arid regions — via enhanced wa- ter management infrastructure, climate-resilient agriculture and research on drought-tolerant crop varieties. A corner- stone of this initiative is local-level capacity building, ensur- ing communities and regional institutions have the requisite tools, knowledge and training to anticipate, mitigate and ef- fectively respond to drought episodes. With this significant investment, the OPEC Fund underscores its commitment to tackling climate challenges comprehensively, fostering greater resilience and promoting sustainable development across diverse vulnerable regions. Through these expanding partnerships and substantial re- source commitments, the OPEC Fund continues to strategi- cally leverage international collaboration, broadening both the geographic and thematic scope of its climate finance interventions. This approach reinforces the institution’s mission of promoting equitable, inclusive and sustainable climate-resilient development worldwide.

Food Security and Climate Adaptation Facility

Launched in collaboration with partners such as the WFP, the International Fund for Agricultural Develop- ment (IFAD) and other global development institutions, the facility addresses the intersecting challenges of food insecurity and climate vulnerability. The initiative delivers essential technical assistance, project prepara- tion resources and capacity-building support aimed at strengthening agricultural value chains, improving local and regional food systems and building resilience against climate-related disruptions. By mobilizing collective ex- pertise, the facility effectively enhances nutritional se- curity and promotes sustainable agricultural practices in vulnerable regions.

Nature Solutions Finance Hub

With a target to mobilize at least US$5 billion by 2030, with at least 15 percent coming from private and commercial sources, the hub aims to become a leading global initiative driving the transition to a nature-positive economy. Our financing partners include the Asian Development Bank, Agence Française de Développement, Saudi Fund for De- velopment, Global Environment Facility, Green Climate Fund and UK-ASEAN Catalytic Green Finance Facility. In alignment with global commitments, the facility aims at unlocking new funding pathways to integrate nature-pos- itive investments into sustainable finance by mainstream- ing nature-based solutions into regional and national development plans, while rehabilitating and conserving ecosystems.

4. TRACKING OPEC FUND’S CLIMATE FINANCE

The OPEC Fund annually discloses its climate finance activities (excluding trade finance), covering projects approved in the previous year. Climate finance is accounted for in line with the methodology set out in the Joint Report on MDB Climate Finance standards 4 . By following international standards, the OPEC Fund ensures transparent and accountable climate finance tracking. This review highlights the institution’s ongoing commitment to tackling key climate challenges, with a focus on delivering impactful and measurable climate action.

Chapter 4 | TRACKING OPEC FUND’S CLIMATE FINANCE

Climate Finance 2018-2023

(60.8 percent) supported mitigation activities, while US$338.7 million (39.2 percent) supported adaptation measures.

For the baseline period from 2018 to 2021 the OPEC Fund’s first climate finance review assessed 133 projects, represent- ing a total funding volume of US$4 billion. Of these, 54 pro- jects (41 percent) were identified as contributing to climate finance. The OPEC Fund’s total climate finance during this period amounted to US$826 million, accounting for 20 per- cent of the overall portfolio. Public sector investments made up the majority of this climate finance, contributing 66 per- cent, while the private sector accounted for the remaining 34 percent. Climate finance focused primarily on the energy sector followed by water and agriculture. In 2022, the OPEC Fund’s climate finance portfolio expand- ed with 25 (67.6 percent) out of 37 board-approved projects dedicated to climate finance. Total OPEC Fund climate finance was US$515.4 million, which accounted for 33.4 percent of the total portfolio of US$1.5 billion. Public sector investments in- creased significantly, accounting for 80 percent of total cli- mate finance, while the private sector contributed 20 percent. Total financing in 2023 amounted to US$1.2 billion across 34 projects, out of which 32 projects (94.1 percent) contribut- ed to climate finance. Total OPEC Fund climate finance for 2023 was US$417.4 million, accounting for 34.4 percent of the total portfolio. Out of this 68 percent were public sector projects and 32 percent private sector projects.

Public sector investments accounted for 89.4 percent of total financing, with the private sector contributing the re- maining 10.6 percent.

The Comparative Picture

The OPEC Fund’s climate finance has grown significantly in recent years. Compared to the 2018-2021 baseline the share of climate finance in the overall portfolio increased from 20 percent to 34 percent in 2023 and further to 39 percent in 2024 — demonstrating an upward trajectory. The institution is now close to achieving its target of 40 percent climate finance by 2030, well ahead of schedule. In 2024, total climate finance across all sectors reached US$863.7 million, the highest level to date and more than double the amount recorded in 2023. This substantial in- crease reflects the OPEC Fund’s growing commitment to supporting climate-focused investments. At the sector level, agriculture saw a notable rise in climate finance, increasing from US$77.1 million during the 2018- 2021 baseline period to US$178.7 million in 2024, indicating a stronger emphasis on agricultural sustainability and resilience. The transport sector also experienced growth with climate finance reaching US$121.9 million in 2024, up from US$71.1 million in 2023, signaling continued support for sustaina- ble transport systems. In the energy sector, climate finance increased significantly — from US$114.7 million in 2022 and US$75 million in 2023 to US$206.9 million in 2024 — high- lighting sustained investment in clean energy solutions. While it is important to note that a relatively small number of projects may cause short-term fluctuations in annual data, the overall trend points to a growing prioritization of climate-related investments. Despite year-to-year variations across sectors, the 2024 figures reflect a broader recogni- tion of the urgency of climate action and the need to accel- erate investment in sustainable solutions.

Climate Finance 2024

In 2024, the OPEC Fund approved US$2.2 billion in financing across 49 projects. Of these, 44 projects (89.8 percent) con- tributed to climate finance, amounting to US$863.7 million — representing 39.3 percent of the total portfolio. This reflects a strengthened commitment to tackling climate change (see Charts 1 and 2). Both mitigation and adaptation finance increased in 2024 compared to previous years, highlighting a more balanced ap- proach that addresses both the root causes of climate change and its impacts. Of the total climate finance, US$525 million

Chapter 4 | TRACKING OPEC FUND’S CLIMATE FINANCE

Chart 1: Climate Finance Summary, 2018-2024 Climate finance share of total OPEC Fund finance and sectoral contribution to climate finance (%)

50%

100%

34 %

20 %

32 %

11 %

45%

90%

40%

80%

39 %

35%

70%

30%

60%

33 %

25%

50%

20%

40%

20 %

15%

30%

10%

20%

10%

66 %

80 %

68 %

89 %

2018-2021

2022

2023

2024

Public Sector

Private Sector

Climate Finance

Source: OPEC Fund climate finance reporting, 2018-21, 2022, 2023 and 2024 | See also Annex 7.3, Table 2

Chart 2: Contribution of Public and Private Sector to Climate Finance, 2018-2024 (US$MN)

1000

900

800

283

700

600

500

105

400

132

300

200

100

542

411

286

772

2018-2021

2022

2023

2024

Public Sector

Private Sector

Source: OPEC Fund climate finance reporting, 2018-21, 2022, 2023 and 2024 | See also Annex 7.3, Tables 3 and 7

Chart 2 illustrates the contribution of the public and private sectors to total OPEC Fund climate finance from 2018 to 2024. During the 2018-2021 baseline period, total climate finance amounted to US$825.3 million, with the public sector contributing US$542.1 million and the private sector US$283.2 million. In 2022, total climate finance reached US$515.4 million, comprising US$410.8 million from the public sector and US$104.7 million from the private sector. In 2023, the total was US$417.4 million, including US$285.6 million from the public sector and US$131.8 million from the private sector.

In 2024, public sector contributions increased significantly to US$772.2 million, while the private sector contributed US$91.5 million, bringing total climate finance for the year to US$863.7 million — out of a total portfolio of US$2.2 billion. This marks the highest combined public and private sector contribution across the entire period reviewed and surpasses the baseline total of 2018–2021.

Chapter 4 | TRACKING OPEC FUND’S CLIMATE FINANCE

Chart 3: Contribution of Public and Private Sector to Climate Finance as percentage of total OPEC Fund finance, 2018-2024

50%

45%

40%

43 %

42 %

35%

38 %

30%

32 %

25%

27 %

24 %

20%

19 %

15%

10%

2018-2021

2022

2023

2024

Public Sector

Private Sector

Source: OPEC Fund climate finance reporting, 2018-21, 2022, 2023 and 2024 | See also Annex 7.3, Table 3

Sectoral Distribution of Climate Finance

Sector Definitions

Agriculture This sector encompasses all projects related to farming, live- stock, fisheries and forestry. It includes initiatives aimed at improving agricultural productivity, sustainability and resil- ience to climate change. Education This sector includes projects aimed at improving educational infrastructure, access to education and quality of education. It includes investments in schools, universities and vocational training centers as well as educational programs and initiatives. Energy This sector includes projects related to the production, dis- tribution and consumption of energy. It covers renewable en- ergy projects (such as solar, wind and hydroelectric power 5 ), energy efficiency initiatives and other efforts to transition to sustainable energy sources. Financial Institutions This sector includes financial institutions’ transactions, primarily loans to banks. It covers all financial services pro- vided by banks and other financial institutions, including

credit, investment and insurance services that support eco- nomic activities.

Multisectoral This category is used for projects that are cross-cutting and do not fit into a single sector. Multisectoral projects might include initiatives that address climate resilience, energy transition and agriculture simultaneously. This classification is used for loans and other financial transactions that have impacts across multiple sectors. Transport This sector includes projects related to the development and maintenance of transportation infrastructure. It covers roads, railways, airports, seaports and public transportation systems as well as initiatives aimed at improving transporta- tion efficiency and sustainability. Others This category includes any projects that do not fit into the specific sectors mentioned above. It is a category for miscel- laneous projects that have unique or diverse objectives such as policy-based lending.

Chapter 4 | TRACKING OPEC FUND’S CLIMATE FINANCE

Analysis of the OPEC Fund’s portfolio shows that the distri- bution of sectoral investments varied over the seven-year period from 2018 to 2024 (Chart 4).

the “Others” category, which also saw a notable increase in 2024, reaching over US$250 million.

In 2024, the agriculture sector received approximately US$180 million in climate finance, while the energy sector received around US$200 million. In earlier years, the financial institutions sector recorded an investment of approximately US$190 million in 2022, and the multisectoral category received around US$160 million in 2022 and US$140 million in 2023. The energy sector recorded annual investments ranging from US$80 million to US$110 million between 2018 and 2023, increasing to approximately US$210 million in 2024. The education and transport sectors received lower invest- ment levels across all years, generally below US$50 million annually.

Agriculture and energy accounted for relatively higher in- vestment levels at the beginning of the period in 2018. The financial institutions sector recorded an increase in 2019, reflecting shifting investment priorities in that year. Educa- tion remained relatively stable throughout the period, with only minor variations in annual allocations. Multisectoral investments began at a moderate level in 2018, increased between 2022 and 2023 and then saw a slight decline in 2024. Agriculture sector investments, initially modest, grad- ually increased in 2022 and 2023, spiking in 2024, reaching over US$150 million. Transport, after higher levels in 2018, experienced a decline in the middle of the period, followed by renewed growth in 2024. A similar trend is observed in

Chart 4: Sectoral Distribution of Climate Finance, 2018-2024

250%

200%

150%

100%

50%

Agriculture

Education

Energy

Financial Institutions

Multisectoral

Transport

Others

2018

2019

2020

2021

2022

2023

2024

Source: OPEC Fund climate finance reporting, 2018-21, 2022, 2023 and 2024 | See also Annex 7.3, Table 5a

Chart 4 depicts contributions of different sectors for 2018-21, 2022, 2023 and 2024. Chart 5 indicates the percentage of climate finance of each sector to total investment in the sector for the respective time periods.

Chapter 4 | TRACKING OPEC FUND’S CLIMATE FINANCE

Chart 5: Climate Finance Percentage of Total Sectoral Financing, 2018-2024

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

Agriculture

Education

Energy

Financial Institutions

Multisectoral

Transport

Others

2018

2019

2020

2021

2022

2023

2024

Source: OPEC Fund climate finance reporting, 2018-21, 2022, 2023 and 2024 | See also Annex 7.3, Table 5b

Chart 6: Sectoral Distribution of Total Climate Finance, 2018-2024

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

2018–2021

2022

2023

2024

Agriculture

Education

Energy

Financial Institutions

Multisectoral

Transport

Others

Source: OPEC Fund climate finance reporting 2018-21, 2022, 2023 and 2024 | See also Annex 7.3, Tables 6 and 8

Chart 6 depicts the sectoral contribution of climate finance to total climate finance of the OPEC Fund for the time periods 2018-21, 2022, 2023 and 2024.

Chapter 4 | TRACKING OPEC FUND’S CLIMATE FINANCE

Between 2018 and 2024, the OPEC Fund’s climate finance portfolio shows a gradual shift from an emphasis on energy to an allocation across other sectors, including agriculture, multisectoral initiatives and financial institutions. In 2024, the portfolio saw a pivot toward agriculture and the “Others” category, which accounted for 25 percent and 30 percent of total climate finance, respectively — both significantly higher than in previous years as shown in Chart 6. Projects in the “Others” category in 2024 included basic

health infrastructure as well as government and public sec- tor policy and public finance management. These changes suggest a strategic emphasis on rural development, food security, and emerging or cross-cutting thematic areas linked to the growing importance of adaptation finance. At the same time, energy investments remained low at 20 percent, while transport (10 percent) and multisectoral (7 percent) declined compared to their 2023 levels. Invest- ments through financial institutions further decreased to around 5 percent.

Chart 7: Sectoral Distributions of Adaptation and Mitigation Finance of Total Climate Finance, 2018-2024

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

Adaptation Mitigation

2018–2021

2022

2023

2024

Agriculture

Education

Energy

Financial Institutions

Multisectoral

Transport

Others

Source: Fund climate finance reporting 2018-21, 2022, 2023 and 2024 | See also Annex 7.3, Tables 6 and 8

Chart 7 shows the distribution of climate finance across several of the OPEC Fund’s focus areas — agriculture, financial institu- tions, education, energy, transport — broken down by adaptation and mitigation funding for 2018-2021, 2022, 2023 and 2024.

Chapter 4 | TRACKING OPEC FUND’S CLIMATE FINANCE

Regional Distribution of Climate Finance

Regional Definitions

MENA, Eastern Europe and Central Asia (MEC) This region includes the Middle East and North Africa as well as countries in Eastern Europe and Central Asia. Our partner countries in this area include Armenia, Jordan, the Kyrgyz Republic and Uzbekistan. Sub-Saharan Africa This region encompasses all countries in Africa except for North Africa. It includes Eastern and Southern Africa (ESA) and Western and Central Africa (WCA). Our partner coun- tries in this region include Burundi, Liberia, Malawi, Senegal, Tanzania and Zimbabwe.

To provide clarity on the regional classifications used in this report, below are the definitions for each region:

Asia and the Pacific (ASP) This region includes countries in East and South Asia, such as Bangladesh, India and Nepal, as well as Pacific island nations. Countries in Central Asia and the Middle East are part of the MEC region. Latin America and the Caribbean (LAC) This region includes countries in Central and South America as well as the Caribbean. Our partner countries include Co- lombia, Nicaragua and Panama.

Climate finance as percentage of total regional allocation is displayed in Tables 12a and 12b in the Annex.

From 2018 to 2021 climate finance commitments remained relatively balanced across the regions, with each receiving annual allocations between US$40-90 million. However, be- ginning in 2022, some regions experienced sharp increases in financing volumes. In ASP, commitments saw a moderate rise in 2022 (ap- proximately US$110 million) and reached a peak in 2024 at around US$190 million, indicating growing engagement in climate-resilient development across the region. This up- ward trend suggests increasing demand for climate finance in ASP countries in support of adaptation and integrated infrastructure investments. The LAC region experienced a substantial increase in climate finance in 2022, reaching approximately US$170 million, the highest volume recorded for the region over the period. Although this declined in 2023 and 2024 to roughly US$120 million and US$90 million, respectively, LAC still received significant financing compared to earlier years. MEC maintained relatively consistent financing levels be- tween 2018 and 2022 (around US$80-90 million per year), before experiencing a dramatic surge in 2023 and especially in 2024, reaching US$110 million and nearly US$310 million, respectively. This made MEC the largest recipient region in 2024, suggesting a major scale-up of climate-related

investments — likely driven by strategic infrastructure projects, renewable energy transitions and the introduction of policy-based loans. These loans have enabled partner countries to implement wide-ranging reforms in support of climate goals, including regulatory improvements, ener- gy sector transformation and strengthened institutional frameworks, contributing to a more systemic and impactful approach to climate finance in the region. Sub-Saharan Africa also saw a marked increase in financing, particularly in 2024. While financing remained relatively stable between 2018 and 2021 (around US$50 million annu- ally), it increased significantly in 2022 (US$120 million) and 2023 (US$130 million), before rising sharply to approximate- ly US$280 million in 2024. This positions Sub-Saharan Africa as the second-largest region in 2024, reflecting a strong strategic focus on supporting climate adaptation, food secu- rity and resilience-building in vulnerable contexts. Overall, the data reveal a clear trend toward geographic con- centration of climate finance in the MEC and Sub-Saharan African regions in 2024, combined with a broader increase in total regional allocations. The OPEC Fund’s evolving portfo- lio reflects both the growing scale of its climate investments and an adaptive response to emerging regional needs with a strong emphasis on aligning resources with areas of highest vulnerability and development opportunity.

Chapter 4 | TRACKING OPEC FUND’S CLIMATE FINANCE

Chart 8: Regional Distribution of Climate Finance, 2018-2021 (US$MN)

Chart 9: Regional Distribution of Climate Finance, 2022 (US$MN)

PROJECTS APPROVED mid-2022 – mid-2023 45 42+21+19+18+H 153.2 178.3 145.6 348.3 TOTAL 825.3 2018–2021

PROJECTS APPROVED mid-2022 – mid-2023 45 33+25+21+21+H 110.0 129.0 171.3 105.1 TOTAL 515.4 2022

LAC

MEC

LAC

ASP

Sub-Saharan Africa

ASP

Source: OPEC Fund climate finance reporting 2018-21 See also Annex 7.3, Table 12a

Source: OPEC Fund climate finance reporting 2022 See also Annex 7.3, Table 12a

Chart 10: Regional Distribution of Climate Finance, 2023 (US$MN)

Chart 11: Regional Distribution of Climate Finance, 2024 (US$MN)

PROJECTS APPROVED mid-2022 – mid-2023 45 32+29+29+10+H 44.2 120.1 118.8 134.3 TOTAL 417.4 2023

PROJECTS APPROVED mid-2022 – mid-2023 45 36+32+22+10+H 189.4 276.4 92.8 305.1 TOTAL 863.6 2024

ASP

MEC

LAC

ASP

MEC

LAC

Sub-Saharan Africa

Source: OPEC Fund Climate Finance Report 2023 See also Annex 7.3, Table 12a