Abu Dhabi’s government-owned renewable energy company, Masdar, along with the Abu Dhabi Fund for Development, Etihad Credit Insurance (the country’s export credit agency), and Amea Power, a Dubai-based renewable energy company, will jointly contribute the necessary financing, as stated by al-Jaber. They will be collaborating with the Africa Development Bank’s Africa50 investment platform, which will serve as a strategic partner responsible for identifying the initial projects.
The pledge aims to “catalyse at least an additional $12.5 billion from multilateral, public, and private sources,” al-Jaber said.
“This initiative will target countries with clear transition plans, robust regulatory frameworks, and a real commitment to putting the necessary grid infrastructure in place,” he added.
Africa’s annual climate finance needs amount to $250 billion, according to the African Development Bank, but the continent only receives 12 percent of the total, and less than 2 percent is going to adaptation, according to al-Jaber. “This is neither just nor equitable… and it is a big, missed opportunity.”
“That is why I am calling on donors to close out the $100 billion per year pledge they made over a decade ago and to replenish the green climate fund,” al-Jaber said. Developed countries have come under fire after missing a goal set in 2009 to provide $100 billion per year in climate financing to developing countries by 2020. The target is likely to be met this year.
Africa contributes only about 3 percent to 4 percent of global emissions, yet it suffers some of the worst consequences. “Droughts, floods, and failed harvests have exposed one fifth of Africa’s people to hunger, tripled the number of people displaced in the last three years, and are dragging down Africa’s GDP growth by at least 5 percent every year,” al-Jaber said.
Africa’s installed renewable energy capacity is set to grow to more than 530 GW by 2040, from about 54 GW in 2020, according to the International Renewable Energy Agency (IRENA). Solar photovoltaic photovoltaic capacity will rise to 340 GW and wind capacity to 90 GW.
On September 4, the UAE Carbon Alliance made a commitment to buy $450 million worth of carbon credits from Africa by the year 2030. Their goal is to link the abundant and reliable supply of African carbon credits with the significant demand for these credits in the Middle East.
