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.
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