The Arab Energy Fund, formerly known as APICORP, revealed on Monday its ambitious plan to invest up to $1 billion in decarbonisation technologies within the next five years. This announcement was made at the 28th United Nations climate change conference (COP28), hosted by the United Arab Emirates (UAE).
As part of a comprehensive five-year strategy extending until 2028, the fund aims to play a pivotal role in steering the Middle East and North Africa towards achieving net-zero targets. The commitment to substantial investments in decarbonisation technologies reflects a key aspect of the fund’s dedication to fostering regional sustainability.
Khalid Ali Al-Ruwaigh, Chief Executive of the Arab Energy Fund, outlined their strategy, emphasizing the focus on diversifying investments to champion technological advancements for improved energy efficiencies and sustained decarbonisation efforts.
In line with its green initiatives, the Arab Energy Fund had previously launched a five-year green bond worth $750 million after establishing a green bond framework in 2021. A significant portion of this funding, totaling $610 million, has already been allocated to support 11 projects within the region.
The institution, boasting an investment-grade credit rating from major agencies, disclosed that nearly 20 percent of its $4.5 billion loan portfolio is currently dedicated to environmentally friendly and socially responsible initiatives. This move underscores the fund’s commitment to aligning financial practices with sustainable and responsible objectives.