The ETAF Platform Closes in on USD 1 Billion to Advance Energy Transitions in Developing Markets

Commitments by new partners grow the global ETAF platform in support of renewable energy investment in developing countries.

Sharm el-Sheikh, Egypt / Abu Dhabi, United Arab Emirates, 9 November 2022 – Today, three new partners have officially joined the Energy Transition Accelerator Financing Platform (ETAF), IRENA’s global climate finance platform aimed at mobilising capital to scale up renewable project funding in developing countries by 2030.

Cooperation agreements with the Asian Infrastructure Investment Bank (AIIB), Masdar and Swiss Re were signed on-site at the UN Climate Change Conference COP27 in Sharm el-Sheikh. AIIB intends to deploy USD 300 million as part of the relationship. Masdar intends to contribute a potential investment of up to USD 200 million USD in the program. Swiss Re can help de-risk these critical investments, with insurance solutions and risk insights.

Joining the founding partner and pioneer investor Abu Dhabi Fund for Development (ADFD) who already anchored an investment of USD 400 million, ETAF closes on securing a minimum of USD 1 billion in total funding to start Calls for Projects as of today.

The Inter-American Development Bank (IDB) announced its interest in becoming a partner in ETAF and endeavor to co-finance up to USD 100 million of ETAF projects in renewable energy and decarbonisation technologies in Latin America and the Caribbean (LAC) region.

The official announcement took place in the presence of IRENA’s Director-General Francesco La Camera, His Excellency Majid Al Suwaidi, Director-General of the UAE-hosted COP28, His Excellency Mohammed Saif Al Suwaidi, Director-General of ADFD, AIIB President Liqun Jin, Masdar’s CEO Mohamed Jameel Al Ramahi, Swiss Re Chair of Public Sector Solutions Veronica Scotti and IDB’s Graham Watkins, Division Chief, Climate Change and Sustainable Development.

IRENA’s Director-General Francesco La Camera said: “Today’s pledges will allow IRENA to facilitate capital mobilisation to accelerate the energy transition in developing countries. As a truly global finance platform, ETAF will change the investment landscape in emerging markets in response to the climate crisis. Together with our partners, we can channel international financing to scale renewable energy projects to secure energy to people and communities in most need on the ground and advance the transition to foster socioeconomic impact and climate resilience.”

The ETAF Platform, managed by IRENA, leverages its partners’ proven track record in innovative financial solutions to deliver impact to IRENA’s member countries. ETAF also benefits from the UAE’s climate investment leadership in the run-up to COP28 hosted by the UAE in 2023.

His Excellency Majid Al Suwaidi, Director-General of COP28 added: “We are encouraged to see new partners join the IRENA-led Energy Transition Accelerator Financing (ETAF) Platform. Developing and emerging markets account for only one fifth of clean energy investment, and the ETAF is helping to address this critical gap in the global energy transition. The UAE is proud to have provided the $400 million in anchor funding for the ETAF at COP26, and we look forward to working with our partners to see this Platform deliver clean energy, climate action, and economic prosperity for emerging markets in the Global South.”

His Excellency Mohammed Saif Al Suwaidi, Director-General of ADFD said: “We are proud to be part of the ETAF initiative, as it supports the UAE’s strategic vision to unite global efforts to address climate change through the promotion of renewable energy. Greater support to this cause will accelerate mobilisation of green financing, which in turn will hasten the pace of energy transformation in the developing world.”

AIIB President Liqun Jin added: “Our collaboration with ETAF marks an important step forward for AIIB. This collaboration reflects our commitment to unlock new capital through innovative financing tools, advance the climate agenda, and deliver value to our most vulnerable member economies. As a climate-centric partnerships-focused Bank, we eagerly anticipate an impactful relationship with fellow members of the platform, and look forward to financing a greener, more sustainable future for all.”

Masdar CEO Mohamed Jameel Al Ramahi said: “I am pleased to formalise Masdar’s commitment to the ETAF platform today through the signing of this cooperation agreement. The ETAF platform will leverage Masdar’s technical and commercial expertise and capital, with a potential investment from Masdar of up to $200 million USD in the program, to deliver clean energy to developing countries. The platform will help provide emerging economies with the tools necessary to realise their clean energy potential, and today’s signing underscores Masdar’s commitment to supporting developing nations from around the world to achieve their clean energy objectives.”

Veronica Scotti, Chairperson Swiss Re Public Sector Solutions added: “This partnership is consistent with our vision of helping to make the world more resilient. As a leading provider of insurance solutions and risk insights we can help de-risk these critical investments.”

IDB President a.i Reina Irene Mejía added: “IDB is looking forward to becoming a partner under the ETAF initiative and continue the strong and productive relationship that it has built with IRENA in Latin America and the Caribbean. Platforms such as this one are key to facilitate capital mobilisation to scale up the development of renewable energy projects.”

Launched by IRENA with strategic support from the UAE at COP26 in Glasgow, ETAF is an open-ended platform that will source projects on an ongoing basis, aligned with the implementation of the Paris Agreement and Sustainable Development Goals.

It will help financing feasible projects and mitigate investment risks in developing countries through innovative financing solutions, matchmaking of project partners, technical assistance, and project facilitation.

More information on ETAF is available on etafplatform.org.

This press release is also available in Arabic (عربي).