Arab Energy Fund invests $1bln in decarbonisation

The Arab Energy Fund, formerly APICORP, announced on Monday that it intends to invest up to $1 billion in decarbonisation technologies over the next five years, according to Reuters.

The Middle East and North Africa-focused multilateral financial institution made the announcement at the 28th United Nations climate change conference (COP28), currently hosted by the United Arab Emirates (UAE).

The unveiling of a new name and the commitment to investment are key components of a five-year plan, extending until 2028, aimed at facilitating the regional shift towards achieving net-zero targets.

“Our strategy involves diversifying investments by championing technological advancements for enhanced energy efficiencies and driving sustained decarbonisation efforts,” stated Khalid Ali Al-Ruwaigh, Chief Executive of the Arab Energy Fund.

The Arab Energy Fund launched a five-year green bond worth $750 million following the establishment of a green bond framework in 2021. To date, $610 million has been distributed to 11 projects within the region.

It is noteworthy that the institution holds an investment-grade credit rating from all major rating agencies.

Also, the institution disclosed in a statement that nearly 20 percent of its $4.5 billion loan portfolio is currently allocated to initiatives that are environmentally friendly and socially responsible.