Abu Dhabi’s clean energy company Masdar is teaming up with the International Finance Corporation to explore areas of collaboration to support climate action in emerging markets amid green transition efforts.
As part of the agreement, signed on the sidelines of the World Government Summit 2023, the two entities will explore the establishment of a green hydrogen platform and potential collaboration on bankability and structuring issues for African renewable energy projects.
The framework also covers the exploration of mechanisms to hasten the adoption of distributed photovoltaic systems, and the development of innovative new technology and business models in emerging markets in response to the climate crisis, the Abu Dhabi Media Office said on Tuesday.
“As the UAE prepares to host Cop28, we have placed a special emphasis on ensuring better, more efficient and more equitable access to climate finance,” said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, Cop28 President-designate and chairman of Masdar.
He is also UAE's special envoy on climate change.
“The UAE is a trusted partner of many nations and actively supports the development of emerging nations,” he said.
“The International Finance Corporation has been a key partner for Masdar in a number of emerging markets, and this agreement carries forward the UAE’s commitment to equitable climate finance and inclusive sustainable development.”
Established by Mubadala in 2006, Masdar has taken a leadership role in the global clean energy sector and has also helped to drive the nation’s economic diversification and climate action agenda.
Masdar is active in more than 40 countries and has invested or committed to invest in projects worth more than $30 billion.
The company aims to grow its capacity to at least 100 gigawatts of renewable energy by 2030.
“Masdar has a long history with the IFC, where we have worked together to fund clean energy projects from Jordan to Uzbekistan and other countries,” said Mohamed Al Ramahi, chief executive of Masdar.
“We are confident this agreement will serve as the foundation for further impactful collaborations that advance sustainable development in the countries and communities that need it most.”
This will be 'a Cop of solidarity' says Cop28 President-designate Dr Sultan Al Jaber
Masdar has already completed a number of projects in African countries, including Egypt, Mauritania, the Seychelles and Morocco.
At the last month's Abu Dhabi Sustainability Week 2023, Masdar signed deals for projects with a combined generation capacity of 5 gigawatts across Angola, Uganda and Zambia, as part of Etihad 7, a UAE-led initiative that aims to raise public and private sector funds to invest in the development of Africa’s renewable energy sector.
Masdar is also developing new renewable energy projects in central Asia, as well as in Indonesia, and recently opened an office in Azerbaijan's capital Baku to strengthen the country’s renewable energy programme.
The IFC, a member of the World Bank Group, financed and mobilised $7.7 billion in capital for climate-related initiatives in the first six months of 2022 to help public and private sector projects gain access to funding despite rising interest rates and amid a weakening economic outlook.
The multilateral lender invested $4.4 billion into development programmes and financing deals from its own account and mobilised $3.3 billion from the private sector in the previous financial year that ended on June 30, the IFC’s global head and director of climate business, Vivek Pathak, told The National last year.
Separately, the Abu Dhabi Fund for Development signed a preliminary agreement with the IFC on Tuesday to support investments in emerging markets, including those related to the clean energy transition, climate mitigation and adaptation, the adoption of clean technology and food security.
Under the partnership, the two entities aim to co-invest up to Dh5.5 billion ($1.5 billion) in private sector-led projects, the ADFD said.
