The Organization of the Petroleum Exporting Countries (OPEC) Fund for International Development recently granted USD 1 million to the UN Capital Development Fund (UNCDF) to co-finance clean cooking, energy access and renewable energy through the Climate Finance and Energy Innovation Hub (CFEIH). CFEIH was created in 2022 by the OPEC Fund, UNCDF and the Austria-based NGO Sustainable Energy for All (SEforALL) to provide an “end-to-end policy and finance global platform, which will introduce innovative financing solutions to leverage additional capital for sustainable energy.” Madagascar and Tanzania are two of the first countries the initiative will target.
The OPEC Fund for International Development was established in 1976 and seeks “to stimulate economic growth and alleviate poverty in all disadvantaged regions of the world.” During 2021, the fund committed USD 1.5 billion to 47 projects.
Established in 1966 and headquartered in the US city of New York, UNCDF endeavors to create opportunities for poor people and their businesses by increasing access to microfinance and other forms of investment capital. The organization operates in 46 low-income countries in Africa, Asia and the Pacific with a particular focus on countries emerging from crises. In 2021, UNCDF reported total donor contributions of USD 138 million.
By Ben Barba, Research Associate
Sources and Additional Resources
UNCDF press release on OPEC Fund donation
https://www.uncdf.org/article/8169/opec-fund-and-uncdf-sign-agreement-to-enhance-access-to-efficient-sustainable-energy-solutions-valued-at-usd-1-million
UNCDF press release on CFEIH
https://www.uncdf.org/article/7798/new-climate-finance-and-energy-innovation-hub-to-accelerate-access-to-clean-and-affordable-energy-throughout-the-global-south
OPEC Fund homepage
https://opecfund.org/
SEforAll homepage
https://www.seforall.org/
UNCDF homepage
https://www.uncdf.org/
Previous MicroCapital story on OPEC Fund
https://www.microcapital.org/microcapital-brief-lafise-bancentro-nicaragua-borrowing-75m-mortgages-smes-green-energy-projects-ifc-opec-fund-international-development-ofid/
Previous MicroCapital story on UNCDF
https://www.microcapital.org/microcapital-brief-uncdf-announces-funding-guarantees-technical-assistance-for-enterprises-reducing-environmental-impacts-of-agriculture-energy-forestry-in-drc/
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