In a key development to bolster renewables, three new partners have officially joined the Energy Transition Accelerator Financing Platform (ETAF), IRENA’s global climate finance platform aimed at mobilising 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 at COP27. AIIB intends to deploy $300 million as part of the relationship. Masdar intends to contribute a potential investment of up to $200 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), which has already anchored an investment of $400 million, ETAF closes on securing a minimum of $1 billion in total funding to start Calls for Projects as of today.
The Inter-American Development Bank (IDB) announced its interest in becoming a partner in ETAF and endeavor to co-finance up to $100 million of ETAF projects in renewable energy and decarbonisation technologies in Latin America and the Caribbean (LAC) region.
IRENA’s Director-General Francesco La Camera said on the signing of the new agreement, “Today’s pledges will allow IRENA to facilitate capital mobilisation 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.”
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.
Mohammed Saif Al Suwaidi, Director-General, 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.”
Masdar CEO Mohamed Jameel Al Ramahi said, “The ETAF platform will leverage Masdar’s technical and commercial expertise and capital, with a potential investment from Masdar of up to $200 million in the program, to deliver clean energy to developing countries. The platform will help provide emerging economies with the tools necessary to realise 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.”
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 financing feasible projects and mitigate investment risks in developing countries through innovative financing solutions, matchmaking of project partners, technical assistance, and project facilitation.
ETAF has facilitated the completion of several energy related projects with various countries, namely Cuba, Togo, the island country of Maldives, Sierra Leone to name a few. It has led projects in areas of solar energy, waste to energy, hybrid, hydropower, to success.