Emirates Development Bank (EDB) has pledged up to AED 1.3B ($350M) to support the Energy Transition Accelerator Financing (ETAF) platform, a global climate finance initiative initiated by the International Renewable Energy Agency (IRENA). The goal of this platform is to expedite the funding of renewable energy projects, particularly in developing nations.
During the signing of a Collaborative Partnership Agreement between EDB and IRENA, Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology, COP28 President, and Chairman of Emirates Development Bank, alongside Francesco La Camera, Director-General of IRENA, announced the commitment.
The agreement, signed by Ahmed Mohamed Al Naqbi, CEO of EDB, and Dr. Ahmed Badr, Director of IRENA’s Project Facilitation and Support division, solidifies the partnership, according to WAM.
Emirates Development Bank Commits Financing to IRENA’s ETAF for Paris Agreement and SDGs Alignment
According to the agreement, EDB will offer financing for projects recommended by IRENA, aligning with the Paris Agreement and the UN Sustainable Development Goals (SDGs) through the ETAF platform. Additionally, EDB will contribute its project financing expertise and collaborate with other ETAF partners to ensure the successful financing of selected projects.
Dr. Al Jaber said, “Guided by the UAE leadership’s forward-looking vision for sustainable socio-economic development, we are very pleased to sign this timely agreement with IRENA, just days ahead of COP28, where we will rally the world around the goal of keeping 1.5 degrees Celsius within reach.”
“COP28 marks the first global stock take since the Paris Agreement, and this agreement is a significant milestone in helping to provide adequate climate financing to drive global investments that meet the 2030 global goals and fast-track a just, equitable, orderly, and responsible energy transition.”
Globally, the UAE has emerged as one of the largest investors in renewable energy, channelling AED 183.5 billion ($50 billion) into renewable energy projects across 70 countries. Therefore, as a key enabler of the UAE’s national development and diversification agenda, the Emirates Development Bank continues to drive investments to accelerate the deployment of renewable energy and drive economic growth.
“The EDB-IRENA agreement reflects the nation’s commitment to bolster global collaboration and scale up financing of renewable energy projects to achieve global climate goals We are proud of this new collaboration which will scale up climate change mitigation and adaptation efforts on the road to COP28 and beyond.”
UAE Boosts Collaboration with IRENA, Commits AED 1.46B for Clean Energy
The latest accord strengthens the enduring collaboration between the UAE and IRENA, which encompasses the UAE’s dedication to allocate AED 1.46B ($400M) in funding facilitated by the Abu Dhabi Fund for Development (ADFD). This financial support aims to bolster ETAF’s objective of mobilizing funds, with a specific focus on achieving a total deployment of an extra 1.5 GW of clean renewable energy generation and storage by 2030.
Al Naqbi said, “As the UAE’s development bank, we are committed to supporting the nation’s ambitions for a just, equitable, orderly and responsible energy transition. EDB offers bespoke financing solutions to support businesses addressing the challenges and opportunities in the renewables sector. Our new partnership with IRENA comes at a critical time as the UAE prepares to host COP28 and bolster global efforts towards sustainable economic development.”
“Through the ETAF platform, we will cultivate a robust pipeline of bankable renewable energy projects, and support entrepreneurs to bring high-quality, sustainable, and financially viable clean energy business to market. This will not only help EDB deliver strong economic, social and environmental impact, but will consolidate the UAE’s position as a pioneering global hub for renewable energy technology and manufacturing.”
Fostering Renewable Energy Initiatives: Insights into EDB’s Role in ETAF and Solar Energy Financing Program
Administered by IRENA from its Abu Dhabi headquarters, ETAF stands as a collaborative climate finance platform involving multiple stakeholders. It capitalizes on the expertise, capital, and market outreach of its partners with the goal of promoting the global energy transition. By 2030, the platform aims to facilitate the investment of approximately $1.0B from various funding sources to finance commercially proven, mature renewable energy projects.
EDB holds a mandate to approve AED 30B in financing support to 13,500 companies across five sectors – renewables, manufacturing, technology, healthcare, and food security – by the year 2026. Specifically for investments in alternative or renewable energy, or businesses transitioning to clean and renewable energy sources in the UAE, the Bank provides up to 100% financing of the project value.
The financing comes with a maximum tenor of 15 years and a two-year grace period. Additionally, the bank has recently introduced a pioneering Solar Energy Financing Program. This program, allocating AED 100M, aims to support micro, small, and medium enterprises (mSMEs) in overcoming cost barriers associated with transitioning to cleaner energy sources, with a particular focus on solar energy initiatives.
