OPEC Fund Annual Report 2022

01 | LANDMARKS – AT A GLANCE

POLICY-BASED LENDING

FUNDING PROGRAM

A product of growing importance, policy-based lending allows the OPEC Fund to support structural reform programs that are implemented in a variety of sectors in partner countries. In 2022, such loans were extended to the governments of Côte d’Ivoire, Kosovo, Morocco, Paraguay and Uzbekistan.

The OPEC Fund sold its first bond through a private placement to a single investor in December. The US$50 million bond was issued with a three-year tenor and a sustainability label, following the roll out of the OPEC Fund’s Sustainable Development Goals Bond Framework.

FOOD SECURITY ACTION PLAN

CLIMATE ACTION PLAN

In September, the OPEC Fund adopted its first dedicated Climate Action Plan addressing the twin challenges of energy access and climate change. Under the approach, the OPEC Fund commits by 2030 to increase its climate financing to 40 percent of all new financing and to mainstream climate action into its project cycle focusing on climate resilience, mitigation and adaptation.

In response to the severe disruptions of global food supplies caused by the war in Ukraine, the OPEC Fund in June adopted a US$1 billion Food Security Action Plan leading to a US$10 billion facility by the Arab Coordination Group. The program provides emergency support for imports as well as long-term financing for structural reforms.

STRATEGIC FRAMEWORK

Following the successful implementation of the first phase, the OPEC Fund launched the second stage of its Strategic Framework 2030 with the goal of delivering “transformational growth”. The OPEC Fund introduced a Development Effectiveness Framework, an Environment, Social and Governance (ESG) Policy and an independent Administrative Tribunal as final recourse for the resolution of employment disputes.

OPEC FUND DEVELOPMENT FORUM

Raising its public profile the OPEC Fund hosted its inaugural Development Forum in Vienna in June. More than 250 guests representing governments, international development organizations and businesses discussed how to address pressing issues through concrete actions under the overarching theme “Driving Resilience & Equity”. The Development Forum 2023 will take place on June 20.