Foreword
SHAIMAA AL-SHEIBY
Vice President, Strategy The OPEC Fund for International Development
It is widely recognized that global warming is likely to exceed the critical threshold of 1.5°C before mid-century and may reach the 2°C threshold by 2050, even if CO 2 emissions are kept at 2019 levels throughout the current decade (2020 to 2030). To mitigate these scenarios, higher levels of commitment and corresponding invest- ments to reduce emissions are essential. On a hope- ful note, according to the Intergovernmental Panel on Climate Change’s 2023 report, more than 100 countries, accounting for at least two-thirds of global emissions, are developing strategies for carbon neutrality or zero greenhouse gas (GHG) emissions. However, this can only be achieved if global initiatives to reduce emissions are accelerated and effectively implemented. The OPEC Fund is actively engaged in the global dia- logue, hosting climate events and participating in key multilateral policy discussions aimed at reinforcing mit- igation efforts and strengthening adaptation measures. In addition to supporting partner countries in achiev- ing their emission reduction targets through renewable energy and energy efficiency projects, the OPEC Fund has been addressing the immediate impacts of climate change such as extreme weather events, unprecedented floods, droughts and record-high temperatures. Recog- nizing that effective climate resilience requires ongoing updates of policy documents, environmental regula- tions and climate-sensitive sectoral reforms, the OPEC Fund has prioritized collaborating with other multilateral
development banks (MDBs) and bilateral partners to im- plement these changes in several partner countries.
Our efforts were brought into sharp focus with the in- troduction of our Climate Action Plan in 2022, which was then followed by a comprehensive Climate Action Strategy. The Climate Action Plan reflects our firm com- mitment to proactively seek climate financing opportu- nities and to align with the Paris Agreement’s mandate. By doing so, the OPEC Fund joins the MDB community, , advancing the global climate financing agenda with am- bitious targets, including achieving 25 percent climate finance by 2025 and 40 percent of all new financing by 2030. Starting in 2022, we also inaugurated the annual climate finance tracking of our portfolio, utilizing the joint MDB Framework for Climate Finance Tracking methodology. This takes an activity-based approach and ensures that our assessments are context-specific, granular and trans- parent. This report, comprising five sections, outlines the evolu- tion of the OPEC Fund’s climate policy and action, exam- ines temporal trends in climate financing and highlights significant contributions being made towards global cli- mate goals. The OPEC Fund remains committed to driving change and fostering sustainable development through robust climate finance initiatives.
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