OPEC Fund, UNCDF sign agreement to enhance access to efficient, sustainable energy solutions valued at USD 1M

UNCDF in ActionOPEC Fund and UNCDF Sign Agreement to Enhance Access to Efficient & Sustainable Energy Solutions Valued at USD 1 MillionAgreement Signed in Doha, Qatar at the 5th UN Conference on Least Developed Countries (LDC5)

The OPEC Fund for Development (OPEC Fund) and the UN Capital Development Fund (UNCDF) today signed a grant agreement that will finance activities aimed at improving access to efficient and sustainable energy solutions, including clean cooking, as well as increasing private sector engagement and investments in energy access and transition.

USD 1 million will be granted from the OPEC Fund to UNCDF to co-finance activities aimed at assisting countries to meet their clean cooking ambitions as well as support broader efforts towards the achievement of the targets under SDG 7 (ensure access to affordable, reliable, sustainable and modern energy for all) and SDG 13 (take urgent action to combat climate change and its impacts) of the Sustainable Development Goals.

The signing took place on the sidelines of the 5th United Nations Conference of the Least Developed Countries (LDCs)—the once-in-a-decade opportunity to accelerate sustainable development and to tap the full potential of the LDCs.

OPEC Fund Director-General Dr. Abdulhamid Alkhalifa said: “The OPEC Fund has been committed to combatting energy poverty and enhancing access to modern energy services for almost five decades. We are strengthening synergies with new and existing partners through the recently launched Climate Finance and Energy Innovation Hub and look forward to collaborating with UNCDF to help deliver the Sustainable Development Goals.

We are very pleased to sign this grant agreement today as it addresses several key issues: First, it promotes the role of innovation in climate action. Second, it is a direct response to the recent G20 review calling on MDBs to play a bigger role in tackling short-term crises and longer-term development needs.

And third, it provides an excellent example how cooperation takes us further and how by joining forces we can deepen our impact.”

“This agreement between UNCDF and OPEC Fund is another piece in a multi-partner arrangement which confirms the importance of global institutions working together to solve common problems,” quote Xavier Michon, Deputy Executive Secretary, UNCDF.

“As the UN Catalytic Finance Entity for the LDCs, we are proud to embark on a partnership that support the achievement of the SDGs, in the geographies where the success of the 2030 Agenda will be determined.”

Under the agreement, the grant financing will support the inception phase of the Climate Finance and Energy Innovation Hub—created to provide an end-to-end policy and finance global platform, which will introduce innovative financing solutions to leverage additional capital for sustainable energy —which was co-launched last year by the OPEC Fund, SEforALL and UNCDF.

In line with the signing taking place at the LDC5, which is intended to marshal resources and partnerships to support sustainable development in the LDCs, two of the initial target countries for the agreement are Madagascar and Tanzania.

About the OPEC Fund

The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively.

The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world.

The OPEC Fund was established in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education.

To date, the OPEC Fund has committed more than US$23 billion to development projects in over 125 countries with an estimated total project cost of US$190 billion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA, Outlook Positive by S&P. Our vision is a world where sustainable development is a reality for all.

About UNCDFThe United Nations Capital Development Fund (UNCDF) is the United Nations’ flagship catalytic financing entity for the world’s 46 Least Developed Countries (LDCs).

With its unique capital mandate and focus on the LDCs, UNCDF works to invest and catalyse capital to support these countries in achieving the sustainable growth and inclusiveness envisioned by the 2030 Agenda for Sustainable Development and the Doha Programme of Action for the least developed countries, 2022–2031.

UNCDF builds partnerships with other UN organizations, as well as private and public sector actors, to achieve greater impact in development; specifically by unlocking additional resources and strengthening financing mechanisms and systems contributing to transformation pathways, focusing on such development themes as green economy, digitalization, urbanization, inclusive economies, gender equality and women’s economic empowerment.

A hybrid development finance institution and development agency, UNCDF uses a combination of capital instruments (deployment, financial & business advisory and catalysation) and development instruments (technical assistance, capacity development, policy advice, advocacy, thought leadership, and market analysis and scoping) which are applied across five priority areas (inclusive digital economies, local transformative finance, women’s economic empowerment, climate, energy & biodiversity finance, and sustainable food systems finance).

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