THE HISTORY OF THE OPEC FUND
ACWA Power projects in Azerbaijan, Egypt, Jordan and Uzbekistan, with total commitments of close to US$300 million. The 240 MW Khizi–Absheron wind farm in Azerbaijan, co-financed through a US$50 million loan from the OPEC Fund’s Private Sector Operations, is the country’s first independent wind power project financed by international investors and the largest in the Caucasus region. Inaugurated in January 2026, it is expected to provide nearly 300,000 households with renewable power and mitigate the impact of 400,000 tonnes of CO 2 emissions annually. The OPEC Fund is also co-financing the largest onshore wind power project in Africa to date with a US$30 million loan. Located on the western coast of the Gulf of Suez in Egypt, the project will contribute to the country’s strategy to increase the share of renewables to around 40 percent of its energy mix by 2035, strengthen energy security, reduce greenhouse gas emissions and promote private sector participation in clean energy infrastructure. The facility is expected to supply enough clean energy to power more than one million households, while offsetting 2.4 million tonnes of CO 2 emissions a year. At the other end of the scale in terms of size, though not impact, are a series of smaller loans between US$250,000 and US$750,000 provided between 2013 and 2015 to finance solar mini-grids in Africa and Asia. In Guinea-Bissau, for example, 440 customers of Contuboel village – including 390 households and 40 businesses, a local school and a health center – gained access to affordable, reliable and sustainable electricity through the installation of a local solar plant and distribution network, with surplus capacity serving the wider community. At the intersection of the OPEC Fund’s priorities of climate finance and food security lies clean cooking. The institution has been supporting clean cooking initiatives since the early 2000s, building knowledge and experience in promoting innovative solutions. In September 2024, the OPEC Fund signed a US$35 million loan with the Republic of Madagascar for the SMART Clean Cooking Project. Its objective is to drive a nationwide clean cooking transition
OPEC Fund Climate Financing 2024
New solar and wind energy projects are now the cheapest form of electricity generation in many markets.
Of 49 projects, 44 (89.8%) contributed to climate finance, amounting to US$863.7 million, representing 39.3% of the year’s approvals. This reflects a strengthened commitment to tackling climate change. Mitigation & Adaptation Finance: Both mitigation and adaptation finance increased in 2024 compared to previous years, highlighting a more balanced approach that addresses both
the root causes of climate change and its impacts.
the institution has positioned itself as an enabler of equitable climate action in low- and middle-income countries. The Climate Action Plan has significantly accelerated the OPEC Fund’s climate finance contributions. In 2024, climate-related financing reached 39.3 percent of total commitments (against its target of 40 percent by 2030), with 44 projects contributing to climate action and totaling US$863.7 million. Both mitigation and adaptation finance increased in 2024 compared to previous years, underscoring a balanced approach that addresses both the root causes of climate change and its impacts. Of total climate finance, US$525 million (60.8 percent) supported mitigation activities, while US$338.7 million (39.2 percent) supported adaptation measures. Public sector investments accounted for 89.4 percent of this financing, with the private sector contributing the remaining 10.6 percent. The world of energy generation has undergone a profound transformation in recent years. Beyond the climate imperative, the energy transition is delivering economic and social benefits: new solar and wind energy projects are the cheapest form of electricity generation in many markets. ACWA Power, a leading Saudi developer and operator, has emerged as a frontrunner in this field, with a presence across the Middle East, Africa, Central and Southeast Asia. To date, the OPEC Fund has co-financed six
US$525 MN 60.8% of the total climate finance supported mitigation activities US$338.7 MN 39.2% of the total climate finance supported adaptation measures Public & Private Sector Investments: 89.4% of the total climate finance was accounted for by public sector investments 10.6% of the total climate finance was accounted for by private sector investments
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