EDITORIAL
CLIMATE ACTION: FINDING SOLUTIONS, MOVING FORWARD, DELIVERING CHANGE
Dear reader,
In the coming days and weeks Sharm El-Sheikh will be the center of international attention. The Egyptian city on the southern tip of the Sinai Peninsula, usually known as a popular beach resort, will host the COP27 climate conference. Delegates from around the world representing the 194 signatories of the Paris Agreement will gather knowing that concrete climate action can no longer be postponed. In a powerful contribution to this edition of our magazine, the host of the conference, Egypt’s Minister of International Cooperation Rania Al-Mashat (see pages 50-53) notes that global climate financing falls far short of the estimated US$4.13 trillion required annually to achieve our climate commitments. Her conclusion for COP27: “The main objective is to move from pledges to implementation.” The OPEC Fund is following this call. Our Governing Board in September 2022 adopted the organization’s first Climate Action Plan, setting ambitious
targets and changing the way the OPEC Fund appraises its projects: With this new strategy the organization commits to doubling its climate financing by 2030 from currently 20 percent to 40 percent of approved projects. It moves to combine the fight against energy poverty with the promotion of sustainable energy (see pages 8-13). Mobilizing more of the much-needed financing is key to moving forward in the fight against climate change. But these funds must also be invested prudently. Smart, effective and feasible solutions are key and this edition of the OPEC Fund Quarterly is dedicated to some of the many noteworthy options and opportunities. We are starting our journey in Iceland (see pages 18-21), a pioneer in geothermal energy, a resource which also holds promise for some of the OPEC Fund’s development partners: According to the renewables agency IRENA, as of 2020 the lion’s share of renewable electricity in Kenya, the Philippines and
Nicaragua already came from this source. Utilizing geothermal energy’s undisputed potential, however, will require mobilizing serious private sector investment. One of the conditions to attract private investors is a stable business environment with guaranteed rule of law and predictable risk performance. Minister Al-Mashat argues: “Innovative solutions, such as de-risking instruments and blended finance, are more important than ever.” Combining innovative financing with technical solutions remains the way forward. In an interview with Kristen P. Patterson (see pages 38-41) we have the opportunity to learn more about the work of Project Drawdown, a nonprofit organization based in the USA that seeks to help the world reach “drawdown” – the future point in time when levels of greenhouse gases in the atmosphere stop climbing and start to steadily decline. Patterson heads the organization’s efforts to find and promote concrete climate solutions.
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