Renewables Receive Major Boost with Pledges to IRENA's ETAF Platform Exceeding USD 4 Billion

By surpassing its COP28 target fourfold, the Energy Transition Accelerator Financing Platform (ETAF) signals strong momentum for renewable energy financing in developing countries

Dubai, United Arab Emirates, 5 December 2023 – Today, with the addition of four new partners, financial pledges towards the International Renewable Energy Agency’s (IRENA) ETAF platform reached USD 4.05 billion, surpassing its original target for COP28 by more than fourfold.

The platform, established in 2021 with support from the United Arab Emirates, aims to scale up renewable energy projects that contribute to Nationally Determined Contributions (NDCs) in developing countries, while also bringing benefits to communities through enhanced energy access and security, and promoting economic growth and diversification.

Collaboration agreements with the European Bank for Reconstruction and Development (EBRD), HSBC, the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) were signed with IRENA at COP28.

Under the agreements, EBRD pledged up to USD 1 billion to the platform; the IFC up to USD 1 billion; HSBC up to USD 200 million; and MIGA will provide guarantees and risk mitigation products for selected ETAF projects.

IRENA’s Director-General, Francesco La Camera, stated: “The remarkable growth of the ETAF Platform not only demonstrates its effectiveness as a project facilitator but also shows that when the right conditions are in place, securing financing for renewable energy projects no longer becomes a barrier. We are eager to leverage the unique expertise and capabilities of each ETAF partner, along with the platform's robust project pipeline, to deliver concrete progress on energy access for those that need it most.”

EBRD Managing Director of the Sustainable Infrastructure Group, Nandita Parshad, stated: “The EBRD is proud to partner with IRENA - ETAF with up to USD 1 billion to scale up renewables, strengthen grids and drive innovative energy solutions forward. As the EBRD regions embark on the energy transition journey, we need all hands on deck to support our countries with concrete climate action. IRENA - ETAF will facilitate just that – through directing capital flows to clean affordable energy projects.”

IFC’s Vice President of Industries, Mohamed Gouled, said: “We are excited to collaborate with IRENA and other development partners as we bring IFC’s expertise in project financing, blended finance, and energy transition to the ETAF Platform. As a leading financier of low-cost renewable energy with a strong track record in supporting the energy transition globally, we are confident that today’s $1 billion pledge will play a critical role in improving access to sustainable and affordable energy across emerging markets.”

HSBC Regional Chief Executive Officer for the Middle East, North Africa & Türkiye, Stephen Moss, said: “Public-private partnerships are critical to securing the flows of capital required to scale up renewables around the world. ETAF plays an important part in helping to ensure that climate finance is deployed effectively to reduce emissions and provide clean, reliable energy for local communities. HSBC aims to use its global reach to support progress towards a net zero future through participation in meaningful alliances.”

MIGA Executive Vice President, Hiroshi Matano, said: “We welcome the opportunity to promote foreign direct investment to support projects that advance the global transition to renewable energy and contribute toward a low-carbon and climate-resilient development that benefits IRENA member countries. MIGA brings decades of experience providing risk mitigation solutions to secure financing for projects in challenging environments. Our track record working in emerging markets and developing economies, fragile, conflict-affected, and vulnerable regions will enable us to make a substantive contribution to this partnership.”

During the event, the OPEC Fund, which had pledged USD 250 million to ETAF earlier this year, signed a supplementary agreement committing an additional USD 400k in grants aimed at providing technical assistance to eligible projects applying on the platform.

The announcements come days after the signing of several key agreements, including the Emirates Development Bank committing USD 350 million to ETAF, the Islamic Development Bank allocating USD 250 million, and the Islamic Corporation for the Insurance of Investment and Export Credit offering de-risking products for renewable energy projects in developing countries.

Other key partners of ETAF include the Abu Dhabi Fund for Development, Asian Infrastructure Investment Bank, Masdar, Swiss RE, the OPEC Fund and the Inter-American Development Bank.

With the latest partnerships established at COP28 and in the build up towards it, the ETAF Platform has now reached a total of 13 partners, demonstrating its rapidly expanding role as an inclusive and effective financing tool for the energy transition.

For more on ETAF, click here.

For more on IRENA at COP28, click here.