CLIMATE
ACTION PLAN
With the adoption of its first dedicated Climate Action Plan in September 2022, the OPEC Fund is taking on the twin challenges of energy access and climate change.
Committed to the delivery of the United Nations Sustainable
Alkhalifa, the OPEC Fund will main- stream climate financing throughout its project pipeline.
The Climate Action Plan was developed on the basis of a comprehensive review of historic OPEC Fund commitments. The analysis of the project portfolio from 2018 to 2021, based on net pro- ject approvals, excluding trade finance projects, numbered 134 public and private sector projects totaling US$18.3 billion, of which the OPEC Fund’s share amounted to US$4.13 billion in financ- ing. Of this total, 57 projects (42 per- cent of total projects) included climate finance components worth US$826 million (20 percent of portfolio).
Development Goals (SDGs) since their proclamation in 2015, the OPEC Fund has long viewed SDG7 – Affordable and Clean Energy as one of its top priorities. With its Climate Action Plan, the OPEC Fund has now taken the next step towards an energy transition that is just, equitable and sustainable. The plan sets the target to increase the share of climate financing to 40 percent of all new financing by 2030. To achieve this “ambitious, yet realistic” target, in the words of Director-General Dr. Abdulhamid
Beginning in 2023, the OPEC Fund will subject all new projects to climate screening, identifying climate action potential while systematically including low-carbon and climate resilient options in project approval documentation. In addition, once the Multilateral Development Banks (MDBs) Joint Framework for Paris Alignment is finalized, the OPEC Fund will fully align a proportion of all newly approved projects.
Of those climate finance com ponents, US$607 million were
PANAMA
The OPEC Fund signed a US$120 million loan to the government of Panama to support the country’s climate change actions and policies. The Panama Support Program for the National Climate Change Policy aims to mitigate, contain and reverse the effects of climate change, helping Panama to achieve its long-term climate change commitments aligned with the Paris Agreement. CAF - Development Bank of Latin America is supporting the project with an additional US$320 million loan.
This loan helps guide the transformation of our socio-economic development. Our aim is a decarbonized green economy and a resilient society with healthy productive systems and ecosystems. Our focus is on strengthening public climate change policies. These include carbon negativity across 10 priority sectors, for example: energy, biodiversity and sustainable infrastructure.
LIGIA CASTRO DE DOENS Director of Climate Change, Ministry of Environment, Panama
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