Chapter 5 | UPDATE ON ROADMAP 2030
In 2024, the OPEC Fund made notable progress in advancing its role as an advocate and financial supporter of climate action. One highlight was the April 2024 Climate Solutions Week. This event convened experts from government ministries, partner organizations, developing countries and the private sector for both high-level policy dialogues and in-depth technical exchanges. By creating a platform for the exchange of best practices and emerging solutions, the event reinforced the OPEC Fund’s role as a venue for collaborative climate engagement.
In June 2024, the institution officially launched the Island Resilience Facility during the OPEC Fund Development Forum. Designed in response to the specific climate vul- nerabilities of SIDS — including rising sea levels, coastal erosion and extreme weather events — the facility pro- vides targeted financial resources, capacity-building support and technical assistance. The launch reflects the OPEC Fund’s growing focus on supporting vulnerable communities in the global response to the climate crisis. The OPEC Fund also played an active role at COP29 in Baku, participating in key side events centered on SIDS, biodiversity and land degradation neutrality, includ- ing sessions held in parallel with UNCCD COP16. These engagements emphasized the interlinkages between climate, land and biodiversity and supported sustainable development pathways that protect both people and eco- systems. Through these discussions and partnerships, the institution strengthened its voice in shaping integrated approaches to climate and environmental action. Starting in 2025, all new projects (excluding trade finance) will undergo climate screening to assess their GHG re- duction potential and resilience measures. Low-carbon strategies and climate adaptation components will be systematically integrated into project planning and docu- mented throughout the approval process. The OPEC Fund
will also closely monitor and evaluate the climate-related performance of its projects, applying lessons learned to enhance future programming.
The OPEC Fund will continue to prioritize climate action in the energy, water and agriculture sectors — areas where it has historically had strong engagement. In addition, policy-based financing, introduced in recent years, has proven effective in supporting reforms that strengthen legal and regulatory frameworks for climate, environmen- tal and natural resource management. The institution also plans to expand its partnerships in the financial sector by working with institutions managing large green portfolios in areas such as renewable energy, energy efficiency and climate-resilient agriculture. These efforts closely conform with the MDB Paris Alignment Methodological Principles, which the OPEC Fund has adopted to assess whether operations are con- sistent with national climate strategies and responsive to climate-related risks. The institution also supports partner countries in building the capacity needed to manage these risks effectively. As part of its long-term vision, it will continue collaborating with other MDBs, refining its approaches and facilitating knowledge exchange to strengthen Paris Alignment practices across the develop- ment finance community.
29
Powered by FlippingBook