In a significant move towards advancing clean energy initiatives in Africa, the United Arab Emirates (UAE) has pledged a substantial $4.5 billion, as announced by the Cop28 Presidency. This generous commitment will accelerate the development of clean energy projects across the continent.
The funding will be provided by prominent UAE entities, including Abu Dhabi’s leading clean-energy firm, Masdar, the Abu Dhabi Fund for Development, Etihad Credit Insurance, and Dubai-based renewable energy company AMEA Power.
Africa50, originally established to address the continent’s infrastructure challenges, will play a vital role in identifying initial projects and establishing connections with local implementing entities, as outlined in the Cop28 Presidency statement.
Dr. Sultan Al Jaber, Cop28 President-designate, emphasized the UAE’s commitment to deploying innovative, commercially driven blended finance solutions for promoting clean energy adoption in emerging and developing nations.
The initiative’s focus will be on countries in Africa with clear transition strategies, improved regulatory frameworks, and comprehensive master plans for grid infrastructure development that integrates supply and demand.
Furthermore, the UAE-based company will contribute $2 billion in equity and mobilize an additional $8 billion in project finance, with the ambitious goal of delivering 10 gigawatts of clean energy capacity in Africa by 2030.
AMEA Power, a key participant, will finance 5 gigawatts of renewable energy capacity on the continent by the end of the decade, mobilizing an impressive $5 billion—comprising $1 billion in equity investments and $4 billion in project finance.
The Abu Dhabi Fund for Development will contribute $1 billion in financial assistance, while Etihad Credit Insurance will provide $500 million in credit insurance to reduce risk and stimulate private capital investment.
The commitment aligns with Africa’s burgeoning renewable energy capacity, set to surge to over 530 gigawatts by 2040, up from 54 gigawatts in 2020, according to the International Renewable Energy Agency (Irena).
By xamse
September 5, 2023
