UAE Finance Initiative to Fund Africa’s Clean Energy Potential for US$4.5 Billion

The announcement made by H.E. Dr. Sultan Al Jaber, the COP28 President-Designate, is a significant initiative aimed at supporting clean energy development in Africa. Here’s a summary of the key points in the announcement:

1. UAE Finance Initiative: The UAE has pledged $4.5 billion to assist in unlocking Africa’s potential for clean energy. This initiative is a collaboration between public, private, and development capital from various UAE entities, including the Abu Dhabi Fund for Development (ADFD), Etihad Credit Insurance (ECI), Masdar, and AMEA Power. Africa50, an investment platform created by African states and the African Development Bank (AfDB), has also joined the effort.
2. COP28 Goals: The COP28 President-Designate has repeatedly called for a global doubling of renewable energy by 2030 and aims to make finance more accessible and affordable.
3. Action Points for African Leaders: The initiative encourages African leaders to improve policy and regulatory frameworks to attract long-term investments in clean and sustainable energy. This includes making local utilities financially sustainable, modernizing energy systems, streamlining development processes, eliminating bureaucratic delays, and removing barriers to capital flows.
4. Etihad 7 Development Platform: The initiative is part of the Etihad 7 development platform launched by the UAE in 2022, which aims to provide clean power to 100 million people in Africa by 2035.
5. Key Contributors: Various entities are contributing to this initiative, including ADFD, ECI, Masdar, and AMEA Power, which are committing substantial amounts of funding for clean energy projects in Africa.
6. Addressing the Access Gap: In sub-Saharan Africa, millions of people lack access to electricity. This initiative aims to accelerate the development and delivery of infrastructure, generation, and distribution solutions to close the gap in access to clean energy.
7. Encouraging Additional Investment: The initiative aims to open up opportunities for other governments, philanthropies, and multilateral development banks to encourage further private sector investment in clean energy projects in Africa.
8. Global Call to Action: The COP28 UAE Presidency is calling on global financial institutions and foundations to join the effort to convert commitments into tangible actions.
9. Climate Change and Funding: The COP28 UAE Presidency is also emphasizing the need for funding arrangements for Loss and Damage and an increase in adaptation finance to protect vulnerable communities from the effects of climate change.
10. UNFCCC Global Stocktake: This announcement comes just before the release of the technical data related to the first Global Stocktake of climate progress since the 2015 Paris Agreement, which is expected to reveal that the world is off track in meeting its climate goals.

The initiative aims to drive clean energy development in Africa, reduce carbon emissions, and improve access to sustainable energy sources across the continent, addressing both environmental and developmental challenges.