UAE pledges $4.5 billion to African countries at Africa Climate Summit in Nairobi
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Africa Climate Summit Latest; UAE announces $4.5bn finance initiative for clean energy projects in Africa
Africa Climate Summit Latest; UAE announces $4.5bn finance initiative for clean energy projects in Africa.
The UAE has pledged $4.5 billion to help speed up the development of clean energy projects in Africa, the Cop28 Presidency has said.
Abu Dhabi’s clean-energy company Masdar, the Abu Dhabi Fund for Development, Etihad Credit Insurance, and Dubai-based renewable energy company AMEA Power will provide the funds.
Africa50, an investment platform established by African governments and the Africa Development Bank, has also joined the initiative, the Cop28 Presidency said at the Africa Climate Summit on Tuesday.
The platform, which was founded to help solve the continent’s infrastructure problems, will help to identify initial projects and connect with organizations responsible for putting those into effect, the statement said.
“This initiative builds on the UAE’s track record of commercially driven, innovative blended finance that to promote clean energy in emerging and developing nations,” said Dr Sultan Al Jaber, Cop28 President-designate.
It will “prioritize investments in countries across Africa with clear transition strategies, enhanced regulatory frameworks, and a master plan for developing grid infrastructure that integrates supply and demand”.
To reduce barriers to investment, countries must restore the financial sustainability of local utilities while modernizing basic energy infrastructure, Dr. Al Jaber said.
They should also clarify development processes, eliminate the red tape delaying market lead time, and eliminate restrictions to capital flows.
Masdar has pledged $2 billion of equity and will mobilize an additional $8 billion in project finance aimed at delivering 10 gigawatts of clean energy capacity through its Infinity Power platform in the continent by 2030.
AMEA Power will help fund five gigawatts of renewable energy capacity in Africa by the end of the decade, mobilizing $5 billion, with $1 billion in equity investments, and $4 billion from project finance.
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The Abu Dhabi Fund for Development will provide $1 billion of assistance to address basic infrastructure needs, while the Etihad Credit Insurance will provide $500 million of credit insurance to lower risk and unlock private capital.
The investments will catalyze at least an additional $12.5 billion from multilateral, public, and private sources, Dr Al Jaber said.
The latest initiative falls under the UAE’s Etihad 7 programme, which aims to raise public and private sector funds to invest in the development of Africa’s renewable energy sector.
It aims to achieve 20 gigawatts of capacity to supply 100 million people across the continent with clean electricity by 2035.
Africa’s installed renewable energy capacity is set to grow to more than 530 gigawatts by 2040, from about 54 gigawatts in 2020, according to the International Renewable Energy Agency (Irena).
Solar photovoltaic capacity will rise to 340 gigawatts and wind to 90 gigawatts.
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