OPEC Fund Quarterly - 2024 Q2

SPECIAL FEATURE

more di ffi cult to keep the private sector ratio high because it may not be as ready as some more advanced countries like Türkiye or Poland. On the green agenda, we’re helping our clients to be ambitious and Paris-

green transition. We help policymakers remove these barriers to create market environments that mobilize the private sector. We recently launched our corporate climate governance facility, which helps clients develop Paris-aligned transition plans to address governance gaps and identify priority green investments. We then support them to create the conditions and awareness to raise capital for green investments. Here we’re engaging with all sectors including agribusiness, energy, manufacturing, natural resources, etc. We’re also supporting access to long- term finance because a lot of is required to deliver green technology investments. Here we need to be innovative with financial instruments and the risk mitigation measures must be able to support first-market movers. EBRD is not only filling the financing gaps. We’re driving systematic improvements

in the resilience of our clients and the economies of our regions. This approach delivers results. Last year, EBRD’s green financial commitments reached € 6.5 billion. At the same time, we mobilized over € 21 billion of green finance from the private sector. OF Q : What are EBRD’s experiences with pooling resources within partnerships? HI: Some institutions naturally align in terms of mandate and strategy. EBRD, together with many partners including the OPEC Fund, favors a long-term approach. But others have a di ff erent risk approach, focusing on quick returns. It can be di ffi cult to convince them about certain markets and the need for green commitments. Ultimately, it’s clear for EBRD and the OPEC Fund that climate action and competitiveness go hand-in-hand. We’re entirely committed to this dual-track path.

aligned. We’re also working with governments to support market

development and improve the regulatory environment to help the private sector accelerate the green transformation. Our approach is to further engage with the public sector on policy (institutions, regulations, capacity building) while providing long-term green finance to private sector clients. OF Q : How do you incentivize the private sector to do just that? HI: We understand the barriers faced by our private sector clients, including a lack of enabling regulations, large

subsidies for fossil fuels and weak government commitments to the

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