UAE’s COP28 presidency vows USD 4.5bn for clean energy in Africa

The COP28 president-designate Sultan Al Jaber on Tuesday pledged USD 4.5 billion (EUR 4.2bn) of UAE finance to help unlock Africa’s clear energy potential.

The initiative will combine public, private and development funding from several UAE institutions, namely Abu Dhabi Fund for Development (ADFD), Etihad Credit Insurance (ECI), Masdar and AMEA Power. They will partner with Africa50, an investment platform established by African governments and the Africa Development Bank (AfDB), to develop 15 GW of clean power by 2030. Alongside the envisioned USD-4.5-billion investment, the initiative is expected to catalyse at least an additional USD 12.5 billion from multilateral, public and private sources.

Sultan Al Jaber, who is UAE’s Minister for Industry and Advanced Technology, Masdar’s chairman, as well as chief executive of the Abu Dhabi National Oil Company (ADNOC), made the announcement at the inaugural African Climate Summit in Nairobi, Kenya.

The ambition is to jumpstart a pipeline of bankable clean energy projects in Africa, he told the summit. “This initiative will target countries with clear transition plans, robust regulatory frameworks and a real commitment to putting the necessary grid infrastructure in place,” the COP28 president-designate added. The UAE will host COP28 from November 30 to December 12.

ADFD and ECI are initiating the project, providing USD 1 billion of financial assistance and USD 500 million of credit insurance, respectively, to mobilse private sector action.

Renewable energy developer Masdar is committing USD 2 billion in equity and aims to deliver 10 GW of clean energy capacity in Africa by 2030. It plans to mobilise another USD 8 billion in project finance and through its Infinity Power platform.

AMEA Power will seek to mobilise USD 5 billion, including USD 1 billion of equity, to build 5 GW of renewable energy capacity in the continent by 2030.

Africa50's role will involve helping to identify initial projects and connect to local implementing entities.

In his remarks, Sultan Al Jaber pointed out that almost half of Africa’s population still lacks access to electricity and added that meeting basic energy needs with low-carbon solutions aligns with Africa’s development and climate goals.

The newly announced initiative is intended as "a scalable model that can and should be replicated," he said.

(USD 1 = EUR 0.926)

Choose your newsletter by Renewables Now. Join for free!