In a bid to join the global fight against climate change, COP28 President-Designate, Dr Sultan Al Jaber, has announced a transformative finance initiative aimed at unlocking Africa’s clean energy potential.
Dr. Al Jaber made this announcement during his keynote address at the inaugural African Climate Summit held in Nairobi, Kenya.
The initiative, which amounts to a substantial $4.5 billion investment, brings together a coalition of crucial stakeholders from the UAE, including the Abu Dhabi Fund for Development (ADFD), Etihad Credit Insurance (ECI), Masdar, and AMEA Power.
Additionally, Africa50, an investment platform established by African governments and the Africa Development Bank (AfDB), is a key partner in this endeavor.
Dr. Al Jaber, who has been a vocal advocate for tripling global renewable energy by 2030 and enhancing financial accessibility, urged African leaders to improve policy and regulatory frameworks to attract long-term investments in clean and renewable energy.
The COP28 President-Designate outlined several key action points to reduce barriers to investment, including enhancing the financial stability of local utilities, streamlining development processes, and eliminating bureaucratic obstacles.
He highlighted the initiative’s aim to work with Africa, prioritising countries with clear transition strategies and improved regulatory frameworks, while also focusing on developing grid infrastructure to integrate supply and demand.
With 600 million people in sub-Saharan Africa lacking access to electricity, the initiative seeks to address this critical issue by accelerating the development and delivery of clean energy solutions.
Currently, investments in African renewables account for just 2 percent of the global total, falling far short of the estimated $60 billion annually needed by 2030.
This initiative will operate within the framework of Etihad 7, a development platform launched by the UAE, which aims to provide clean electricity to 100 million people in Africa by 2035.
ADFD and ECI are kickstarting the initiative with substantial financial support, while Masdar commits to an additional $2 billion of equity and the mobilisation of $8 billion in project finance to deliver 10 gigawatts of clean energy capacity in Africa by 2030.
AMEA Power targets 5GW of renewable energy capacity in Africa by 2030, mobilising $5 billion.
Moreover, the initiative aims to pave the way for other multilateral development banks, governments, and philanthropies to contribute to this effort, underlining the COP28 Presidency’s commitment to converting words into actions in the fight against climate change.
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