THE HISTORY OF THE OPEC FUND
by strengthening infrastructure, supporting sustainable agroforestry and empowering communities. Going forward, all OPEC Fund-financed projects in Madagascar will include a clean cooking component with dedicated funding. Grants in support of clean cooking have also been extended to Rwanda, Sierra Leone and Somalia. Further deepening its commitment to international climate objectives, the OPEC Fund adopted its Paris Agreement alignment goals in September 2025. The Governing Board approved targets of achieving 60 percent alignment by 2027 and 80 percent by 2030 (excluding trade finance). The ultimate objective is 100 percent alignment across all operations through a phased transformation. A 2024 portfolio assessment found that the majority of OPEC Fund operations are already aligned with the goals of the 2015 Paris Agreement. The OPEC Fund’s strategy for addressing climate change mitigation and adaptation is anchored in a robust partnership approach designed to enhance impact through targeted collaboration. Delivery of the Climate Action Plan was facilitated by vehicles such as the Nature Solutions Finance Hub, conceptualized and implemented in cooperation with the Asian Development Bank (ADB). Al-Shaimaa Al-Sheiby, Vice President, Public Sector, explains:
“South-South financing platforms are increasingly important. Human
skills across the South have been developing at an incredible pace, often imagining solutions that have a greater chance of succeeding because they’re grounded in shared realities and more affordable.”
Al-Shaimaa Al-Sheiby, Vice President, Public Sector, OPEC Fund
“From mangrove restoration to wetland conservation, urban green infrastructure to watershed reforestation, nature- based solutions have been elevated to the strategic level since the approval of the OPEC Fund Climate Action Plan in September 2022. Our Nature Solutions Finance Hub was the logical next step because as forward-looking partners, we wanted to do more. We wanted to share the good work that we do in Asia and replicate it across the globe, because the need for climate finance is critical…
There’s a departure from traditional financing and South-South platforms are increasingly important. Human skills across the South have been developing at an incredible pace, often imagining solutions that have a greater chance of succeeding because they’re grounded in shared realities and more affordable.” With the new Island Resilience Facility, the OPEC Fund has reconfirmed its commitment to Small Island Developing States. A first project loan in the history of the institution was signed with the
Clean cooking Clean cooking has emerged as a critical component of the global development agenda, incorporated into the 2015 UN Sustainable Development Goals (SDG 7). Clean cooking is crucial for public health, environmental protection and socio-economic development. It has grown in scale and complexity, encompassing a wide range of technologies, fuels, business models and innovative funding instruments. Despite the recognized importance, the transition to clean cooking remains slow and challenging. Between 2010 and 2021, global access to clean cooking increased by only 1.4 percent annually, with most progress concentrated in a few populous developing countries. Today, roughly three-quarters of those without access to clean cooking are located in just 20 countries, primarily in Sub-Saharan Africa and Asia. Investment levels are significantly below the required US$8 billion annually, as estimated by the International Energy Agency, to achieve universal access by 2030.
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