ETAF Collects $1B Energy Transition Funding For Developing Markets
Three new partners have officially joined the Energy Transition Accelerator Financing Platform (ETAF), a global climate finance platform aimed at mobilizing capital to scale up renewable project funding in developing countries by 2030.
Cooperation agreements with the Asian Infrastructure Investment Bank, Masdar, and Swiss Re were signed on-site at the UN Climate Change Conference COP27 in Sharm el-Sheikh. AIIB intends to deploy $300 million as part of the relationship. Masdar intends to contribute a potential investment of up to $200 million to 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 already anchored an investment of $400 million, ETAF closes on securing a minimum of $1 billion in total funding to start calls for projects.
The Inter-American Development Bank announced its interest in becoming a partner in ETAF and endeavoring to co-finance up to $100 million of ETAF projects in renewable energy and decarbonization technologies in Latin America and the Caribbean region.
The official announcement took place in the presence of IRENA’s Director-General Francesco La Camera, Director-General of the UAE-hosted COP28 Majid Al Suwaidi, Director-General of ADFD Mohammed Saif Al Suwaidi, 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.
“Today’s pledges will allow The International Renewable Energy Agency (IRENA) to facilitate capital mobilization 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 climaate resilience,” La Camera said.
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.
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 finance feasible projects and mitigate investment risks in developing countries through innovative financing solutions, matchmaking of project partners, technical assistance, and project facilitation.
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