OPEC Fund Contributes US$1.5 Billion for Sustainable Development in 2022, Launches Food Security and Climate Action Plans
The OPEC Fund for International Development, a multilateral development finance institution headquartered in Vienna, Austria, committed US$1.5 billion in financing to 41 projects last year, supporting partner countries worldwide to strengthen economic resilience, create jobs and develop social and economic infrastructure.
In 2022, the OPEC Fund, which marked its 47th anniversary on January 28, also launched a US$1 billion Food Security Action Plan and adopted its first dedicated Climate Action Plan, committing 40 percent of all new financing to climate action by 2030.
“The OPEC Fund provided critical development support during severe economic upheaval in 2022. We helped meet the basic needs of our partner countries, increased our impact and focused our efforts on responding to the global challenges of food security and climate change. We were able to leverage our engagement by mobilizing billions in development support from our partners.”OPEC Fund Director-General Dr. Abdulhamid Alkhalifa
Following its successful delivery in 2022, the OPEC Fund started the new year with the successful placement of its debut public benchmark bond in the capital markets. The 3-year fixed-rate sustainability (SDG) bond attracted strong demand from investors globally and raised US$1 billion. The additional funds will be used to finance key sustainable development projects that are aligned with the OPEC Fund’s multi-sectoral development mission and directly contribute to achieving the SDGs.
Dr. Alkhalifa said: “The successful issuance of our first-ever SDG bond, which was welcomed by considerable demand from global investors, further inspires us to increase our impact and commitment to the global development agenda.”
See related article: OPEC Fund Supports Panama’s Climate Change Policy with US$120 Million Loan
The OPEC Fund’s 2022 operations were spread across Africa (36 percent), MENA & Europe (34 percent), Asia and the Pacific (24 percent), Latin America & Caribbean (6 percent) regions through public and private sector lending, trade finance and grants.
The OPEC Fund’s US$1 billion Food Security Action Plan, which was swiftly followed by a US$10 billion facility by the Arab Coordination Group (ACG), was put into action immediately with a US$100 million loan to Jordan, followed by loans in Zimbabwe (US$15 million), Côte d’Ivoire (US$60 million), Paraguay (US$30 million) and Uzbekistan (US$50 million). The funding will finance emergency supplies and foster long-term resilience.
Following the adoption of its Climate Action Plan, the OPEC Fund signed its first agreement with a US$120 million loan to the Republic of Panama in support of its national climate policy. Together with the ACG, the OPEC Fund announced a joint US$24 billion climate facility at the UN Climate Change Conference COP27 in Egypt. The OPEC Fund also launched a Climate Finance and Energy Innovation Hub in partnership with the United Nations Capital Development Fund and SEforALL.
The OPEC Fund continues to deepen cooperation with partner institutions and the wider international development community. The first OPEC Fund Development Forum held June 21, 2022 in Vienna, brought together over 250 leaders from governments, international organizations and businesses in Vienna.
In 2022, the OPEC Fund co-financed projects with the Asian Development Bank (ADB), the African Development Bank (AfDB), the Arab Coordination Group, the European Bank for Reconstruction and Development (EBRD), the International Fund for Agricultural Development (IFAD), the World Bank and the International Finance Corporation (IFC). The OPEC Fund also signed cooperation agreements with ADB, AfDB, the Development Bank of Latin America (CAF – Corporación Andina de Fomento) and the International Renewable Energy Agency (IRENA).