Oil industry makes $300m net zero push to boost OPEC’s climate plans
The Organization of the Petroleum Exporting Countries (OPEC) said it has approved to spend around $300m to boost its so-called Climate Action Plan.
Via its new financing vehicle, the OPEC Fund for International Development Fund, in Vienne generally known as the OPEC Fund, the organisation said it plans to support a number of climate finance projects which should help a number of countries on their path towards net zero and stimulate sustainable investments.
"These efforts will aid our partners in Africa, Asia and Latin America to enhance their climate policies while boosting resilience to climate change," said Director-General Dr. Abdulhamid Alkhalifa.
"At the same time, our work on access to energy and road infrastructure underline our continued dedication to improving people's lives worldwide," he added.
The OPEC Fund adopted its first dedicated Climate Action Plan in September 2022.
The plan commits the organization to increase the share of its climate financing to 40 percent of all new financing by 2030 and "to mainstream climate action into the project cycle, increasing climate adaptation, mitigation and resilience investments in energy, transport, agriculture, food, water and smart cities," according to OPEC.
Last night, the OPEC Fund Governing Board approved a project in Armenia that will support a €50 million loan to encourage policies for increasing climate resilience and mitigation through a series of reforms concerning energy efficiency, air quality standards and to finance environmental impact assessments.
In Colombia, A US$150 million loan will support policies for the promotion of sustainable and resilient growth by fostering the government's capacity to plan climate action and promote energy transition.
In India, US$100 million loan will help finance a 56 km ring road around one of the country's largest cities, serving a population of more than 4 million people. T
The financing will also be supported by a US$410,000 grant, which will contribute to project preparation and implementation.
Over in the Seychelles, a US$20 million loan will help the country strengthen policies to promote inclusive and sustainable growth. Among the planned actions are climate-related reforms to land development, consumer data protection and fishing regulations.
The OPEC Fund was established in 1976 to drive development, strengthen communities and empower people. The vehicle claims that its "work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment, particularly relating to MSMEs, clean water and sanitation, healthcare and education."
To date, the OPEC Fund boasts it committed more than $24 billion to development projects in over 125 countries with an estimated total project cost of $190 billion.