Climate Finance Report 2024

Chapter 2 | THE CLIMATE ACTION PLAN

Commitment to Societal Security and Development

The OPEC Fund is particularly concerned about the devel- opment impacts of climate change on local communities. Ensuring a just transition in the energy sector, promot- ing emission reductions in the transport sector and bol- stering climate-smart agricultural practices for small and medium-sized farmers are key aspects of our climate action approach. Protecting livelihoods, exploring alternative em- ployment opportunities and addressing the needs of women and children are emerging as critical areas of concern. This necessitates active engagement with governments on societal development planning and engaging communities for awareness generation and active participation.

Engaging the Private Sector

Recognizing that advanced economies have historically been the largest contributors of GHG emissions and that public funding from wealthy nations has not kept pace with the growing adverse impacts of climate change, it is clear that public finance from countries most responsible for climate change is insufficient to fully counter its ef- fects. Therefore, engaging the private sector in promoting transformative technologies and innovation is imperative, not only to drive sustainable growth but also to secure the necessary funding and investment that can scale up these solutions effectively. The OPEC Fund actively collaborates with stakeholders to devise mechanisms that de-risk pri- vate capital through guarantees, risk insurance and first- loss compensation. By understanding and addressing climate risks, the OPEC Fund fosters sustainable development and resilience in partner countries, ensuring that climate actions are equitable and effective.

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