ABU DHABI, UAE – Emirates Development Bank (EDB) has committed US$350 million (AED 1.3 billion) to support the Energy Transition Accelerator Financing (ETAF) platform to accelerate the financing and drive funding of renewable energy projects in developing countries.
The ETAF platform is a global climate finance facility established by the International Renewable Energy Agency (IRENA).
The announcement was made during the signing of a collaborative partnership agreement between EDB and IRENA, a press release said.
The signing was attended by UAE Minister of Industry and Advanced Technology, COP28 President-Designate, and Chairman of Emirates Development Bank Dr. Sultan Al Jaber and Director-General of the International Renewable Energy Agency (IRENA) Francesco La Camera.
The agreement was signed by Chief Executive Officer of EDB Ahmed Mohamed Al Naqbi and Director of the International Renewable Energy Agency’s (IRENA) Project Facilitation and Support Division Dr. Ahmed Badr.
Under the agreement, EDB will provide financing for projects recommended by IRENA which are aligned with the Paris Agreement and the UN SDGs through the ETAF platform.
EDB will also bring its project financing expertise and collaborate with other ETAF partners to ensure financing of the selected projects.
Dr Sultan Al Jaber said, “Guided by the UAE leadership’s forward-looking vision for sustainable socio-economic development, we are very pleased to sign this timely agreement with IRENA, just days ahead of COP28, where we will rally the world around the goal of keeping 1.5 degrees Celsius within reach.”
He said, “COP28 marks the first global stock take since the Paris Agreement, and this agreement is a significant milestone in helping to provide adequate climate financing to drive global investments that meet the 2030 global goals and fast-track a just, equitable, orderly and responsible energy transition.”
He added, “The UAE is one of the largest investors globally in renewable energy, having invested US$50 billion (AED 183.5 billion) in renewable energy projects in 70 countries.”
The new agreement builds on the long-term partnership between the UAE and IRENA including the country’s commitment to contribute US$400 million (AED1.46 billion) in funding provided by the Abu Dhabi Fund for Development (ADFD) to support ETAF’s goal of mobilizing funds, targeting a total deployment of an additional 1.5 GW of clean renewable energy generation and storage by 2030.
La Camera said, “Due to rapidly falling costs, renewable energy has become the most cost-effective climate solution available to address rising emissions and growing energy demand.”
He said, “This is why, together with the COP28 Presidency, we are advocating for a tripling of global renewable power by 2030, a key step to limit temperature rise to 1.5 degrees Celsius.”
He added, “Earlier this year, the UAE embraced this target domestically, pledging to triple its own renewable energy capacity by 2030, demonstrating its commitment to leading by example.”
Al Naqbi said, “Our new partnership with IRENA comes at a critical time as the UAE prepares to host COP28 and bolster global efforts towards sustainable economic development.”
He said, “This will not only help EDB deliver strong economic, social and environmental impact, but will consolidate the UAE’s position as a pioneering global hub for renewable energy technology and manufacturing.”
ETAF aims to advance the global energy transition globally by facilitating the investment of approximately US$1 billion of capital by 2030 provided by various funding sources to finance commercially proven, mature renewable energy projects, the release added.
For investments in alternative or renewable energy, or businesses shifting to clean and renewable energy sources in the UAE, the EDB offers up to 100 per cent financing of the project value with a maximum tenor of 15 years.