A multi-stakeholder climate finance solution
The Energy Transition Accelerator Financing (ETAF) Platform is an inclusive, multi-stakeholder climate finance platform managed by IRENA to advance the global energy transition in developing economies.
ETAF facilitates capital mobilisation to finance feasible renewable energy projects to achieve an adaptable and resilient energy transition and to bolster economic and social impact in developing countries. The Platform already received pledges from four institutions, amounting to US$900 million to scale approximately 1.5 GW of renewable energy projects by 2030.
ETAF supports the implementation of ambitious National Determined Contributions (NDCs) to meet the Paris Agreement targets (addressing mitigation, adaptation and climate resilience). ETAF contributes to the realisation of United Nations Sustainable Development Goals (SDGs) while serving strategic national objectives such as energy access and security, economic diversification and sustainable impact.
ETAF is leveraging:
- IRENA’s global geographic footprint and unparalleled knowledge of renewable energy.
- ADFD’s 50 years of experience in concessional and development financing worldwide and the track record built with the IRENA-ADFD Facility implemented from 2013 to 2020. ADFD anchors the ETAF with USD 400 million capital allocation.
- AIIB’s global membership and expertise in investing in green infrastructure as the Bank unlocks new capital, new technologies and new ways to connect Asia and the world.
- Swiss Re’s global experience providing risk advisory, de-risking strategies and insurance solutions working with IFIs and project developers, with nearly 160 years of underwriting experience, and investor to support project development.
- Masdar’s technical and project development expertise, together with their market knowledge as an equity investor. Masdar will equity invest in selected private sector-sponsored projects.
- Facilitate and build a geographic and technologically diversified pipeline of bankable renewable energy projects in developing countries.
- Provide technical assistance to eligible projects to ensure bankability regarding economic, environmental, and social sustainability and implementation readiness.
- Mobilise funding resources from international financial institutions, such as MDBs, DFIs, and the private sector, to fund eligible projects’ capital expenditures.
How ETAF works
- Open rolling “Call for Projects” and regular activities to guide on the projects’ registration and submission process.
- Meet the project’s eligibility and readiness screening criteria:
- Access to IRENA’s resources and experts, providing curated guidance and technical assistance targeted to local and regional developers.
- Facilitate access to funding provided by the ETAF Partners and other co-funding sources.
Geographic scope: IRENA member countries [or in accession]
Technology: feasible projects featuring proven renewable energy and decarbonisation technologies
Project’s development level: beyond the business development stage and have availability of grid connection (for on-grid projects) and offtake arrangements
Climate action and sustainable alignment: compliance with Paris Agreement objectives and realisation of NDCs and SDGs
Project size: have a minimum project CAPEX of USD 25 million (for private sector/PPP projects) and USD 10 million (for public sector projects)
IRENA/ADFD Facility (2013-2020)
IRENA-ADFD partnership built on common objectives and on groundwork with local developers and focal points in member countries
In 2013, the International Renewable Energy Agency (IRENA) and the Abu Dhabi Fund for Development (ADFD) initiated a partnership to deploy resources to finance renewable energy (RE) projects in developing countries.
The United Arab Emirates anchored the initiative with USD 350 million to fund the IRENA-ADFD Facility allocated in seven cycles, running until 2020.
IRENA guided the initiative through a call for proposal, review process and recommendation of projects to ADFD for final selection and funding:
- ADFD committed to allocate USD 50 million per cycle to selected projects with ticket sizes ranging from USD 5 to 15 million per project to fund up to 50% of the total project costs
- Funding with have attractive features: interest rates ranging [1%- 2%] on a 15-20 years tenor
- ADFD fully underwrote funding with sovereign risk-mitigation provided by governments where the project are located
- The Facility financed 26 RE projects and further attracted around USD 570 million in co-funding from other financing sources during 2014-2020.