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
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