Arab Coordination Group Announces $10 Billion Energy Transition Plan at COP 28
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In a continued effort to address the global climate crisis, the Arab Coordination Group (ACG), a strategic alliance of regional and international development institutions, announced at COP 28 in Dubai, UAE, a comprehensive plan to support an inclusive, affordable and equitable energy transition in developing countries.
The 7-point strategic initiative outlines the deployment of US$10 billion financing by 2030 to accelerate the global shift to clean and renewable energy sources and is part of the previous US$24 billion pledge by the ACG. The plan’s pillars are:
- Mobilizing Financial Resources: Increasing the use of green bonds, blended finance and risk mitigation tools.
- Fostering Innovation: Embracing new technologies for maximum impact on energy efficiency and storage.
- Promoting Energy Access: Ensuring universal access to sustainable energy globally.
- Strengthening Climate Resilience: Building resilience across key sectors, including food, transport, water and urban systems.
- Collaborating and Knowledge Sharing: Encouraging global cooperation through collaborative initiatives and knowledge sharing.
- Capacity Building: Investing in upskilling workforces in the clean energy sector worldwide.
- Monitoring and Evaluation: Implementing rigorous mechanisms to track progress and impact.
This plan comes at a time when world leaders will review their commitments to reduce carbon emissions at the end of a year marked by record-breaking climate events. Dramatically increasing climate finance and accelerating the energy transition are the pivotal points of deliberations at the current UN Climate Change Conference as the world struggles to manage rising temperatures and unprecedented natural disasters.
OPEC Fund Director-General Abdulhamid Alkhalifa said:
“The delivery of a sustainable and equitable energy transition requires stronger collaboration and joint action. The ACG has the capacity to mobilise substantial financing, boasts nearly 50 years of South-South cooperation and has a proven track-record in advancing sustainable development in its partner countries. The OPEC Fund is proud to contribute to this highly welcome ACG initiative through its own Climate Action Plan.”
The ACG’s landmark US$24 billion commitment was announced at COP27 in 2022 and is currently being rolled out worldwide, particularly in UN-designated least developed countries and small island developing states, where it is being used to accelerate the energy transition, increase resilience of food, transport, water and urban systems, and promote energy security.
The pledge builds in earlier commitments of the group to take climate action: In 2022, ACG members provided US$15.7 billion to nearly 500 operations in over 80 countries. The financing helped to address urgent challenges such as food insecurity and climate change, provided support to key economic sectors and helped facilitate international trade. The largest shares of ACG members’ commitments in 2022 were dedicated to energy (27 percent), the financial sector (27 percent) and agriculture (21 percent).