01 | THE HIGHLIGHTS – CLIMATE ACTION PLAN
CLIMATE ACTION PLAN
While “affordable and clean energy” (Sustainable Development Goal 7) has al- ways been a focus for the OPEC Fund for International Development the mat- ter was promoted to the highest level with the adoption of the Climate Action Plan in September 2022. Since then climate action has become a cross-cut- ting theme that encompasses all sectoral activities of the OPEC Fund. The plan sets the ambitious target of dedicating 25 percent of all new financ- ing to climate action by 2025 and 40 percent by 2030. Delivery is ahead of schedule: In 2022, climate finance accounted for 33 percent of the total approvals. For example, last year the OPEC Fund supported a solar plant in Niger and wind farms in Azerbaijan and Uzbekistan. Another significant climate intervention was launched in Colombia. The country is particularly vulnerable to climate change and the government has been developing a climate mitigation and adaptation response that includes ambitious emission reduction targets. The country aims to cut greenhouse gas emissions by 51 percent by 2030. The comprehensive plan seeks to balance sustainable development with economic growth. The OPEC Fund is supporting Colombia’s Climate Action and Energy Tran- sition Program with a US$150 million policy-based loan. The main goals are to reduce greenhouse gas emissions by 40 percent by 2030 compared to 2014 levels, reduce deforestation by 30 percent, double the land area with systems for sustainable production and conservation to 1.4 million hectares, transition to sustainable transportation and implement the national strategy on the circular economy to increase solid waste recycling and water reuse. With the adoption of its Climate Action Plan, the OPEC Fund joined the large number of development finance institutions and multilateral development banks (MDBs) that contribute to the global agenda for climate financing and measure their contributions. Creating greater synergies through the appli- cation of standardized methodologies has improved the effectiveness of measuring climate finance and the deployment of resources. This is all the more urgent as public funds are increasingly scarce due to huge pressures on national budgets. In a situation in which governments have less capacity for action, while at the same time global challenges such as climate change are becoming ever more important, expectations for MDBs to expand their activities are growing.
51 % by 2030 Colombia aims to cut greenhouse gas emissions by
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