PRESSR: OPEC Fund provides US$150mln to promote climate action in Colombia
First published: 01-Mar-2024 07:57:19
The OPEC Fund for International Development (the OPEC Fund) is co-financing Colombia’s "Climate Action Policy and Energy Transition Program" with a US$150 million policy-based loan. The program aims to foster economic opportunities based on the sustainable use of natural resources, develop circular economy models and promote the energy transition.
OPEC Fund Director-General Abdulhamid Alkhalifa said: “We are pleased to support Colombia’s climate action and promote sustainable and resilient growth. With our loan the country will be able to adopt measures that reduce the vulnerability to climate change and boost economic performance. This aligns with the OPEC Fund’s Climate Action Plan targets.”
The OPEC Fund is co-financing the project with the Inter-American Development Bank (IDB), the Development Bank of Latin America (CAF), Germany’s KFW Development Bank, the Agence française de développement (AFD) and the Central American Bank for Economic Integration (CABEI).
The OPEC Fund’s policy-based lending contributes to countries' financing needs by providing fast-disbursing resources conditional on policy and institutional reforms that help strengthen the economic framework and the creation of conditions for sustainable and inclusive growth. The loans support a reform agenda and the implementation of policies agreed between co-financiers and the government.
Colombia’s program focuses on three components: to strengthen implementation capacity to manage climate action; to foster economic opportunities based on the sustainable use of natural resources and the development of circular economy models; and to promote the energy transition. Policy actions include, among others the conservation and protection of biodiversity, consolidation of green businesses, promotion of climate-smart agriculture and diversification of the country’s energy mix.
The OPEC Fund's Climate Action Plan, launched in 2022, commits 40 percent of all new financing to climate-related investments by 2030. The program is being successfully implemented across the OPEC Fund’s entire investment portfolio.
About the OPEC Fund
The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education. To date, the OPEC Fund has committed about US$27 billion to development projects in over 125 countries with an estimated total project cost of more than US$200 billion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA+/Outlook Stable by S&P. Our vision is a world where sustainable development is a reality for all.
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