The COP28 President-Designate, Dr. Sultan Al Jaber, has unveiled a new initiative from the United Arab Emirates (UAE) that will provide $4.5 billion to support Africa’s clean energy potential. This announcement was made during the inaugural African Climate Summit held in Nairobi, Kenya, and it marks a significant step in promoting renewable energy development on the continent.
The initiative brings together funding from various UAE institutions, including the Abu Dhabi Fund for Development, Etihad Credit Insurance, Masdar, and AMEA Power. In addition, Africa50, an investment platform established by African governments and the African Development Bank, has joined the UAE finance initiative. Africa50 will help identify initial projects and connect with local implementing entities.
Dr. Sultan Al Jaber, the COP28 President-Designate, has been a vocal advocate for tripling global renewable energy capacity by 2030 and making finance more accessible for clean energy projects. He called upon African leaders to improve policy and regulatory frameworks to attract long-term investments in clean and renewable energy.
The initiative aims to prioritize investments in African countries with clear transition strategies, enhanced regulatory frameworks, and plans for developing grid infrastructure. Sub-Saharan Africa currently has around 600 million people without access to electricity, making the expansion of clean energy crucial for social and economic development. However, investments in African renewables represent only a small fraction of what is needed to achieve universal clean energy access by 2030.
This initiative will operate under the Etihad 7 umbrella, a development platform launched by the UAE to provide clean electricity to 100 million people across Africa by 2035. The Abu Dhabi Fund for Development and Etihad Credit Insurance are kick-starting the initiative by providing initial funding to catalyze private sector involvement and de-risk investments in clean energy projects.
Overall, this UAE finance initiative represents a significant commitment to accelerating Africa’s transition to clean and sustainable energy sources, addressing climate change challenges, and promoting low-carbon economic growth.