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Opec Fund had a busy 4Q: The Opec Fund for International Development (Opec Fund) approved almost USD 1 bn in development financing in 4Q 2024 including USD mns worth of loans for regional renewable projects and initiatives, according to a statement. Egypt and Turkey were among the countries to receive financing from the fund totaling nearly USD 100 mn.
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First, Egypt: Opec has extended a USD 40 mn loan for the construction of two wind farms in the Gulf of Suez with 1.1 GW capacity, according to the statement. The USD 1 bn mega wind farm is being developed by Saudi renewables giant Acwa Power and Hassan Allam Utilities and is set to be the largest wind project in both Africa and the Middle East.
Turkey also got some help: Turkey received a EUR 50 mn (c. USD 52.6 mn) loan for the Turkish Industrial and Development Bank (TSKB)-backed Climate Finance Facility Project to bolster investments in renewables, energy efficiency, and climate adaptation, the statement notes. The TSKB aims to accelerate financing of climate investments in Turkey and has already received loans from the German Development Bank and the International Climate Initiative. Turkey has set an ambitious target to reach net zero by 2053 which will require USD 10 bn in financing annually through 2030.
REMEMBER- OFID is upping its climate financing: Opec Fund raised its climate project financing target for low and middle-income countries to at least 50% by 2030 — up from the previous goal of 40%. Saudi Arabia plays a significant role in OFID — being the largest contributor with over 30% — supporting climate change initiatives including clean cooking initiatives in low-income countries in Africa and parts of MENA. Last year, OFID allocated 34% of its funding — USD 1.7 bn — to 55 climate projects, of which 42% were in Sub-Saharan Africa.
