Three new partners have officially joined the Energy Transition Accelerator Financing (ETAF) platform, the International Renewable Energy Agency's (IRENA) global climate finance platform 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 on November 9, 2022, at the UN Climate Change Conference COP27 in Sharm el-Sheikh, Egypt.
AIIB intends to deploy US$300 million as part of the relationship. Masdar intends to contribute a potential investment of up to US$200 million in the program, while Swiss Re can help de-risk these critical investments, with insurance solutions and risk insights.
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, said Liqun Jin, President of AIIB.
Joining the founding partner and pioneer investor Abu Dhabi Fund for Development (ADFD), which already anchored an investment of US$400 million, ETAF closes on securing a minimum of US$1 billion in total funding to start Calls for Projects as of today.
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 for this cause will accelerate the mobilization of green financing, which in turn will hasten the pace of energy transformation in the developing world, said H.E. Mohammed Saif Al Suwaidi, Director-General of ADFD.
The Inter-American Development Bank (IDB) announced its interest in becoming a partner in ETAF and endeavoring to co-finance up to US$100 million of ETAF projects in renewable energy and decarbonization technologies in Latin America and the Caribbean (LAC) region.
IDB is looking forward to becoming a partner under the ETAF initiative and continuing the strong and productive relationship that it has built with IRENA in Latin America and the Caribbean. Platforms such as this one are key to facilitating capital mobilization to scale up the development of renewable energy projects, IDB President a.i Reina Irene Mejía added.
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 (SDGs).
Today’s 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 for people and communities in most need on the ground and advance the transition to foster socioeconomic impact and climate resilience, said Francesco La Camera, Director-General of IRENA.
The ETAF Platform, managed by IRENA, leverages its partners’ proven track record in innovative financial solutions to deliver impact to IRENA’s member countries.
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 US$200 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, said Mohamed Jameel Al Ramahi, CEO of Masdar.
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.
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, said Veronica Scotti, Chairperson of Swiss Re Public Sector Solutions.
ETAF also benefits from the UAE’s climate investment leadership in the run-up to COP28 hosted by the UAE in 2023.
We are encouraged to see new partners join the IRENA-led Energy Transition Accelerator Financing (ETAF) Platform. Developing and emerging markets account for only one-fifth of clean energy investment, and the ETAF is helping to address this critical gap in the global energy transition. The UAE is proud to have provided the US$400 million in anchor funding for the ETAF at COP26, and we look forward to working with our partners to see this Platform deliver clean energy, climate action, and economic prosperity for emerging markets in the Global South, remarked H.E. Majid Al Suwaidi, Director-General of COP28.