Chapter 3 | TRACKING CLIMATE FINANCE
The analysis of the OPEC Fund’s climate finance initia- tives highlights the institution’s commitment to address- ing the urgent challenges of climate change. By adopting the established terminology and methodology for tracking climate finance, the OPEC Fund demonstrates its dedi- cation to transparency and accountability in its climate finance reporting practices.
37 projects with total OPEC Fund financing of US$1.5 billion. Out of these 37 projects, 25 (67.6 percent of the total num- ber of investments) addressed climate finance, 5 projects (13.5 percent) involved climate change adaptation finance, 10 projects (27 percent) involved climate change mitigation finance and 10 projects (27 percent) were a mix of both. Climate change adaptation finance amounted to US$146.6 million (9.5 percent of total OPEC Fund financ- ing), and climate change mitigation finance amounted to US$368.8 million (23.9 percent). Total OPEC Fund climate finance was US$515.4 million, accounting for 33.4 percent of the total portfolio.
Climate Finance Baseline 2018-2021
The first climate finance review for the OPEC Fund was re- leased in 2022. The results were derived from the entire portfolio (excluding trade finance) during the period 2018– 2021. The analyzed portfolio included 133 projects with a total OPEC Fund contribution of US$4 billion. Of this port- folio, 54 projects (40 percent) addressed climate finance: 23 projects (17 percent of the total number of investments in the reviewed portfolio) were for climate change adap- tation finance, 18 projects (14 percent) were for climate change mitigation finance and 15 projects (11 percent) were a mix of both. Across the board, the OPEC Fund’s climate change adap- tation finance in the period amounted to US$219 million (5.3 percent of total financing), and climate change mitiga- tion finance amounted to US$457 million (11.5 percent of total financing). Total OPEC Fund climate finance was US$676 million, accounting for 17 percent of the total portfolio. The share of OPEC Fund climate finance in the public sector was higher (58 percent) than in the private sector (42 per- cent). The main focus of climate finance was on the energy sector (25.3 percent), followed by water and agriculture.
Out of this US$515.4 million, 80 percent was committed to sovereign projects and 20 percent to non-sovereign projects.
Climate Finance 2023
The latest climate finance review was based on net pro- ject approvals for the year 2023, excluding trade finance projects. Total financing for this period amounted to US$1.2 billion across 34 projects. Of these, 32 projects (94.1 percent of the total number of investments) contrib- uted to climate finance: 13 projects (38.2 percent) involved adaptation finance, 4 projects (11.8 percent) focused on mitigation finance and 15 projects (44.1 percent) included a mix of both. Across the board, climate change adaptation finance amounted to US$205.1 million (16.9 percent of total OPEC Fund financing), while climate change mitigation finance totaled US$212.3 million (17.5 percent). Total OPEC Fund climate finance for 2023 was US$417.4 million, accounting for 34.4 percent of the total portfolio.
Climate Finance 2022
The review of the OPEC Fund's climate finance in 2023 was based on net project board approvals for 2022, exclud- ing trade finance projects. The analyzed portfolio included
Of this US$417.4 million, 68 percent was committed to sovereign projects and 32 percent to non-sovereign projects.
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