INTERVIEW VICE PRESIDENT STRATEGY “OUR ROLE IS TO HELP COUNTRIES PROTECT THEIR DEVELOPMENT GAINS AND INVEST IN A MORE
RESILIENT FUTURE” OPEC Fund Vice President, Strategy Musab Alomar on plans for COP31 and the next phase of climate action By Howard Hudson and Axel Reiserer, OPEC Fund
OPEC Fund Quarterly : Extreme heat, droughts and floods are putting increasing pressure on economies. What do these risks mean for the OPEC Fund’s partner countries and how are they shaping the institution’s strategic priorities? Musab Alomar: For our partner countries, climate resilience is closely linked to economic stability and development. A drought can reduce agricultural production, disrupt electricity supply and increase food import costs. A flood can damage infrastructure and interrupt essential services. These pressures affect livelihoods – often those of the most vulnerable – as well as public budgets, often in countries with limited resources to respond. Our role is to help countries protect their development gains and invest in a more resilient future. That means addressing climate risks at the design stage of projects and identifying opportunities to improve their long-term performance. For me, the strategic conclusion is clear: understanding climate risk is part of sound development finance. The infrastructure we support today must continue serving communities in the conditions they will face tomorrow. OFQ: Agriculture and food security are particularly exposed. Where can development finance make the greatest difference, both now and over the longer term?
MA: The immediate concern is how disruptions to production affect food availability, affordability and farmers’ incomes. The effects differ across countries, but poorer households and small producers often have the least capacity to absorb shocks. Development finance can help address several vulnerabilities combined. More reliable water management, better storage, access to weather information and stronger transport links can help farmers protect production and bring their goods to market. Support for local financial institutions can also improve access to finance and insurance for farmers and agricultural businesses. Over the longer term, we need food systems that can cope with changing rainfall and temperatures while maintaining healthy soils and using water sustainably. This requires investments shaped by local conditions. Our priority should be to help countries identify the blend of infrastructure, knowledge and institutional support that will make their food systems more productive and resilient. In Zimbabwe, for example, the Smallholder Irrigation Revitalization Project, which we co-financed with the International Fund for Agricultural Development (IFAD) and the government, helped more than 35,000 farmers, including nearly 21,000 women. It rehabilitated irrigation across 4,780 hectares, while 86 percent of participating households reported adopting environmentally sustainable
and climate-resilient technologies and practices. This illustrates how investment in infrastructure, combined with support to farmers, can help strengthen the capacity to manage climate risks. OFQ: Countries also need more electricity while their energy systems face growing climate pressures. How can they expand access while improving reliability and resilience? MA: Energy access, affordability and resilience need to be planned together. Countries need sufficient generation, but they also need networks that can deliver power reliably and withstand disruptions. Depending on the country, the response may include diversifying electricity supply, strengthening grids, investing in off-grid backup power solutions and storage and improving energy efficiency. Efficient cooling and better building design can also help manage demand. For essential services such as hospitals and water supply, continuity of power is particularly important. The benefits are tangible at the community level. In Nicaragua, the second phase of the OPEC Fund- supported Caribbean Coast Rural Electrification Project connected 2,375 households across 43 communities to the electricity grid, benefiting more than 12,000 people. These are the kinds of results that give meaning to our financing: extending essential services to communities that have long been underserved.
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