The UAE and the International Renewable Energy Agency (IRENA) has announced the Energy Transition Accelerator Financing (ETAF) platform, a new global climate finance facility to accelerate the transition to renewable energy in developing countries.

The UAE has committed USD400 million in funding provided by the Abu Dhabi Fund for Development (ADFD) toward the platform’s goal of securing a minimum of USD1 billion in total funding.

The formal launch took place on the sidelines of the COP 26 United Nations Climate Summit in Glasgow, a statement said.

Sheikh Abdullah bin Zayed Al Nahyan, UAE Minister of Foreign Affairs and International Cooperation, said: “The new ETAF platform reinforces our long-standing commitment to support positive climate action for economic growth in developing and vulnerable countries.

“As one of the countries that have signed the UN framework convention on climate change, the UAE fundamentally believes we must work together globally to address climate change.”

Dr Sultan Al Jaber, UAE Special Envoy for Climate and Minister of Industry and Advanced Technology, added: “The UAE views development aid and climate action as powerful catalysts for economic growth, both domestically and internationally. Today’s announcement will help to advance the economies of partner countries by providing reliable, low-cost renewable energy for businesses, industry, and homes.”

He added that the UAE has offered to host COP28 in year 2023.

Through co-financing, ETAF will aim to mobilise an additional USD 2 billion in energy transition investments, targeting a total deployment of 1.5GW of clean renewable energy generation and storage by year 2030.

ETAF will be managed by IRENA from its Abu Dhabi headquarters, capitalising on the UAE’s climate finance market and renewable energy innovation infrastructure.

Francesco La Camera, director-general of IRENA, said: “This new investment platform reflects the UAE’s commitment to shaping a sustainable future, and IRENA’s efforts to serve its over 180 member countries as an indispensable energy transformation partner.”

The new UAE-IRENA partnership to establish the ETAF platform builds on the long-term collaboration between IRENA and ADFD, which includes seven cycles of the USD 350 million IRENA-ADFD Project Facility. Between 2013 and 2020, the facility financed 26 projects in Asia, Africa, and the Americas, notably including Small Island Developing States.

In total to date, ADFD has worked with a number of clean energy partners and governments in 65 countries to support the development of 90 renewable energy projects that have the capacity to generate more than 9,000 megawatts of electricity. With the new ETAF contribution, ADFD’s total financing for renewable energy projects now stands at USD 1.8 billion.

Mohammed Saif Al Suwaidi, director-general of ADFD, said: “These projects have significant environmental, economic and social impact that is transformational for countries and their people. Through this new platform, we seek to bring together finance and development partners from around the world under a shared vision to combat climate change.”