01 | LANDMARKS – CLIMATE ACTION PLAN
dedicated to mitigation (investments to reduce emissions) and the other US$219 million to adaptation (invest- ments to reduce vulnerabilities and build resilience). Climate financing in the public sector was higher (66 percent) than in the private sector (34 percent). The majority of projects with a climate component were in the energy sector (37 percent), followed by water (25 percent) and agriculture (23 percent). The OPEC Fund’s Climate Action Plan will focus on climate adaptation, mitigation and resilience with contri- butions in the following areas: • Promote transformative climate investment through public and private investments in energy, transport, agriculture, food, water and smart cities; • Drive innovative climate finance solutions for the private sector by financing low-carbon and climate resilient projects and facilitating on-lending;
• Support climate diagnostics, plan- ning and policies by offering assis- tance to partner countries through grant-funded technical assistance in partnership with other MDBs and development finance institutions. To maximize the impact of its climate financing, the OPEC Fund will continue to work with partner institutions and to prioritize projects that “crowd-in” the private sector. The OPEC Fund also commits to joining international climate finance initiatives such as the MDB Climate Finance Working Group, and from 2023 onwards to measure climate finance, greenhouse gas emissions and emission reductions based on agreed methodologies and best practices. The OPEC Fund has a very high mobiliza- tion rate with roughly four out of five operations co-financed with institution- al or private sector partners.
Group launched a US$24 billion climate financing facility at the UN Climate Change Conference COP27 in November 2022 in Egypt. The facility will support the energy transition, increased resilience of food, transport, water and urban systems, and the promotion of energy security among vulnerable populations including in least developed countries and small island developing states. The OPEC Fund participated in COP27 with a strong delegation led by its Director-General and used its presence to progress initiatives such as the Climate Finance and Energy Innovation Hub, which will start with a clean cooking pilot project in Madagascar. By building bridges and expanding its network, participation at the conference also served as a springboard for COP28, to be hosted by the OPEC Fund member country United Arab Emirates.
The OPEC Fund’s leverage was demonstrated shortly after the
adoption of its Climate Action Plan, when the majority of institutions represented in the Arab Coordination
Clearly in the case of Panama, pricing carbon neutrality and carbon absorption capacity should be considered key in the ambitious and just transition to create better socio-economic opportunities and tackle income inequality issues. The country’s strategy and policies include the eventual establishment of the ‘National Carbon Market’, seeking to monetize its carbon sequestration potential as one of the few nations that have reached carbon negative status. Our loan supports the country in its advancement on this mission.
ROMULO MARTINEZ Senior Country Manager, Public Sector Operations, OPEC Fund
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