ETAF
A multi-stakeholder climate finance solution
The Energy Transition Accelerator Financing (ETAF) Platform is an inclusive, multi-stakeholder climate finance solution managed by IRENA to advance the energy transition across the Agency’s 167-strong membership.
ETAF pursues facilitating capital mobilisation to scale up the development of renewable energy projects to advance the energy transition across emerging markets. ETAF supports implementing National Determined Contributions (NDCs) to meet the Paris Agreement targets and realise United Nations Sustainable Development Goals (SDGs).
ETAF aims to mobilise approximately USD 1.0 billion of capital by 2030 from various funding partners, private sector investors, and donors.
ETAF benefits from the convening power of our Funding Partners, the Abu Dhabi Fund for Development (ADFD), Abu Dhabi Future Energy Company PJSC (MASDAR) and IRENA.
ETAF will leverage:
- ADFD’s 50 years' experience in concessional and development financing resources worldwide, commitment to climate finance and the track-record built with the IRENA-ADFD Facility implemented in 2013 to 2020. ADFD anchors the ETAF with USD 400 million capital allocation to co-finance eligible project submitted on the ETAF platform.
- Masdar’s technical, project development expertise together with their market knowledge as equity investor. Masdar joined the ETAF platform as partner last June 2022.
- IRENA’s global geographic footprint and unparalleled knowledge of the renewable energy. IRENA manages the ETAF platform.
ETAF Objectives
- Facilitate and build a geographic and technologically diversified pipeline of bankable renewable energy projects across the Asia Pacific, Africa and Latin America.
- 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 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 conceptual stage
Climate action and sustainable alignment: compliance with Paris Agreement objectives and realisation of NDCs and SDGs
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.