The Arab Coordination Group (ACG) committed to provide up to $24 billion in financing by 2030 to address the global climate crisis, the group announced on Wednesday.
This commitment, made at the ongoing COP27 meet in Egypt, came as part of a joint ‘Call for Climate Action for Equitable Development’.
The corpus, put together by regional and international development financial institutions, is to support the acceleration of energy transition, increased resilience of food, transport, water and urban systems, and the promotion of energy security in countries including the least developed countries and small island developing states.
The ACG said it would strengthen global partnerships, including South-South and Triangular Cooperation to provide solutions to the adaptation, mitigation needs of developing countries and contributing to climate finance flows.
In addition to their own resources, the group members aim to leverage concessional finance to de-risk and catalyze private sector investment in areas and regions where it is needed the most, utilising a range of financial instruments such as loans, blended finance, guarantees and various islamic financing instruments.
Dr. Muhammad Al Jasser, President and Group Chairman of Islamic Development Bank (IsDB) and Dr. Abdulhamid Alkhalifa, the OPEC Fund Director-General announced the ACG climate action commitment on behalf of the member institutions at COP27.
Dr. Al Jasser said IsDB was happy to support the ACG declaration on climate action.
“The bank has made an ambitious target to have by 2025 at least 35 percent of its financing as climate finance. IsDB also pledges to approve at least $13 billion in adaptation and mitigation finance during the period 2023-2030,” Al Jasser said.
OPEC Fund Director-General Dr. Alkhalifa said the ACG’s sizeable financing represented decisive and collective action to address one of the world’s most urgent challenges.
“Climate action and development must be tackled simultaneously. The OPEC Fund as a committed member of the ACG will contribute to this pledge with the implementation of our recently announced Climate Action Plan, which will double the share of climate financing to 40 percent of all new financing by 2030 and mainstream climate action into our project cycle,” he said.
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