The UAE has pledged $4.5 billion to help speed up the development of clean energy projects in Africa, the Cop28 Presidency has said.
Report informs via foreign media that Abu Dhabi’s clean-energy company Masdar, the Abu Dhabi Fund for Development, Etihad Credit Insurance, and Dubai-based renewable energy company AMEA Power will provide the funds.
Africa50, an investment platform established by African governments and the Africa Development Bank, has also joined the initiative, the Cop28 Presidency said at the Africa Climate Summit on Tuesday.
The platform, which was founded to help solve the continent’s infrastructure problems, will help to identify initial projects and connect with organizations responsible for putting those into effect, the statement said.
“This initiative builds on the UAE’s track record of commercially driven, innovative blended finance that to promote clean energy in emerging and developing nations,” said Dr Sultan Al Jaber, Cop28 President-designate.
It will “prioritize investments in countries across Africa with clear transition strategies, enhanced regulatory frameworks and a master plan for developing grid infrastructure that integrates supply and demand”.
To reduce barriers to investment, countries must restore the financial sustainability of local utilities while modernising basic energy infrastructure, Dr Al Jaber said.
They should also clarify development processes, eliminate the red tape delaying market lead-time and eliminate restrictions to capital flows.
Masdar has pledged $2 billion of equity and will mobilize an additional $8 billion in project finance aimed at delivering 10 gigawatts of clean energy capacity through its Infinity Power platform in the continent by 2030.
AMEA Power will help fund five gigawatts of renewable energy capacity in Africa by the end of the decade, mobilizing $5 billion, with $1 billion in equity investments, and $4 billion from project finance.
The Abu Dhabi Fund for Development will provide $1 billion of assistance to address basic infrastructure needs, while the Etihad Credit Insurance will provide $500 million of credit insurance to lower risk and unlock private capital.
The investments will catalyze at least an additional $12.5 billion from multilateral, public and private sources, Dr Al Jaber said.