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.
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