UAE Commits $4.5 Billion to Support African Climate Projects

The United Arab Emirates, as the host of this year's United Nations climate summit, has pledged $4.5 billion to help accelerate clean-energy projects in African nations. The funds will be provided by Abu Dhabi's clean-energy producer Masdar, Abu Dhabi Fund for Development, Etihad Credit Insurance, and Dubai-based renewable-energy company AMEA Power. This commitment comes with a strong call for African leaders to improve policy and regulatory frameworks to attract long-term investments for clean and renewable energy deployment.

Africa contributes only 3% of global emissions but faces severe consequences from climate change, including droughts, floods, and food shortages. These challenges have led to a significant increase in displaced populations and have negatively impacted Africa's GDP growth.

Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and COP28 President-Designate, emphasized the need for coordinated efforts to reduce barriers to investment. Key action points include restoring the financial sustainability of local utilities, modernizing energy infrastructures, simplifying development processes, and eliminating red tape. The initiative will prioritize investments in countries with clear transition strategies and improved regulatory frameworks.

Al Jaber's announcement precedes the upcoming UN climate summit, where he urged donors to fulfill their decade-old $100 billion pledge and replenish the green climate fund. The African Development Bank's Africa50 investment platform will act as a strategic partner to identify initial projects for this initiative.