Three new partners have officially joined the Energy Transition Accelerator Financing Platform (ETAF), IRENA’s global climate finance program aimed at mobilizing capital to scale up renewable project funding in developing countries by 2030.
Cooperation agreements with the Asian Infrastructure Investment Bank (AIIB), Masdar, and Swiss Re were signed on-site at the UN Climate Change Conference COP27 in Sharm el-Sheikh. AIIB intends to deploy USD300 million as part of the relationship. Masdar intends to contribute a potential investment of up to USD200 million in the program. Swiss Re can help de-risk these critical investments, with insurance solutions and risk insights.
Joining the founding partner and pioneer investor Abu Dhabi Fund for Development (ADFD) already anchored an investment of USD400 million, ETAF closes on securing a minimum of USD1 billion in total funding to start Calls for Projects.
The Inter-American Development Bank (IDB) announced its interest in becoming a partner in ETAF and endeavoring to co-finance up to USD100 million of ETAF projects in renewable energy and decarbonization technologies in Latin America and the Caribbean (LAC) region.
The official announcement took place in the presence of IRENA’s Director-General Francesco La Camera, His Excellency Majid Al Suwaidi, Director-General of the UAE-hosted COP28, His Excellency Mohammed Saif Al Suwaidi, Director-General of ADFD, AIIB President Liqun Jin, Masdar’s CEO Mohamed Jameel Al Ramahi, Swiss Re Chair of Public Sector Solutions Veronica Scotti and IDB’s Graham Watkins, Division Chief, Climate Change and Sustainable Development.
IRENA’s Director-General Francesco La Camera said: “The pledges will allow IRENA to facilitate capital mobilization to accelerate the energy transition in developing countries. As a truly global finance platform, ETAF will change the investment landscape in emerging markets in response to the climate crisis. Together with our partners, we can channel international financing to scale renewable energy projects to secure energy to people and communities in most need on the ground and advance the transition to foster socioeconomic impact and climate resilience.”
The ETAF Platform, managed by IRENA, leverages its partners’ proven track record in innovative financial solutions to deliver impact to IRENA’s member countries. ETAF also benefits from the UAE’s climate investment leadership in the run-up to COP28 hosted by the UAE in 2023.
His Excellency Mohammed Saif Al Suwaidi, Director-General of ADFD said: “We are proud to be part of the ETAF initiative, as it supports the UAE’s strategic vision to unite global efforts to address climate change through the promotion of renewable energy. Greater support to this cause will accelerate the mobilization of green financing, which in turn will hasten the pace of energy transformation in the developing world.”
AIIB President Jin Liqun added: “Our collaboration with ETAF marks an important step forward for AIIB. This collaboration reflects our commitment to unlocking new capital through innovative financing tools, advancing the climate agenda, and delivering value to our most vulnerable member economies. As a climate-centric, partnerships-focused Bank, we eagerly anticipate an impactful relationship with fellow members of the platform, and look forward to financing a greener, more sustainable future for all.”
Masdar CEO Mohamed Jameel Al Ramahi said: “I am pleased to formalize Masdar’s commitment to the ETAF platform today through the signing of this cooperation agreement. The ETAF platform will leverage Masdar’s technical and commercial expertise and capital, with a potential investment from Masdar of up to USD200 million in the program, to deliver clean energy to developing countries. The platform will help provide emerging economies with the tools necessary to realize their clean energy potential, and today’s signing underscores Masdar’s commitment to supporting developing nations from around the world to achieve their clean energy objectives.”
Veronica Scotti, Chairperson of Swiss Re Public Sector Solutions added: “This partnership is consistent with our vision of helping to make the world more resilient. As a leading provider of insurance solutions and risk insights we can help de-risk these critical investments.”
IDB President a.I Reina Irene Mejía Chacón added: “IDB is delighted to become a partner under the ETAF initiative and continue the strong and productive relationship that it has built with IRENA in Latin America and the Caribbean and looks forward to furthering collaboration. Platforms such as this one are key to facilitate capital mobilization to scale up the development of renewable energy projects.”
Launched by IRENA with strategic support from the UAE at COP26 in Glasgow, ETAF is an open-ended platform that will source projects on an ongoing basis, aligned with the implementation of the Paris Agreement and Sustainable Development Goals.
It will help finance feasible projects and mitigate investment risks in developing countries through innovative financing solutions, matchmaking of project partners, technical assistance, and project facilitation.