INTERVI EW
Wadi Azraq solar panel farm, Jordan
OFQ : What role can the private sector play in addressing global challenges such as climate change? How can we attract and crowd in the private sector? TA: We have seen an increased role of the private sector in the financing of renewable energy projects in emerging markets. Private sector financing is also
driving the technological advancement required to tackle climate change such as the reduction of the production cost of solar and wind power facilities, the proliferation of e-mobility solutions, driving energy e ffi ciency across sectors, financing electric vehicle battery storage systems and supporting hydrogen-based solutions. The private sector has a crucial role in developing local and regional capital markets and providing other forms of innovative financing structures to address climate change and other global development challenges. Together with other MDBs and led by the International Finance Corporation (IFC) we co-financed the first commercial utility-scale wind power plant in the Middle East. The 117 MW Tafila wind power plant helped Jordan diversify its energy mix and enabled the country to attract additional investments in the renewable energy sector. In 2023, we financed the first non-state wind farm in Azerbaijan sponsored by ACWA Power of Saudi Arabia.
“MDBs’ private sector financing is driving the technological advancement required to tackle climate change.” Tareq Alnassar, Vice President, Private Sector, OPEC Fund
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