Arab Group commits $24bn climate financing to developing countries by 2030

THE Arab Coordination Group (ACG) has today announced that most of its members are committing to providing at least a cumulative amount of $24 billion in financing by 2030 to address the global climate crisis in developing countries.

This announcement was made at the ongoing Conference of Parties (COP 27) in Egypt.

According to a statement by the group, this landmark commitment, put together by regional and international development financial institutions will support the acceleration of the energy transition.

It will also increase the resilience of food, transport, water, and urban systems, and the promotion of energy security in countries including the least developed countries and small island developing states.

“The financial commitment comes as part of a joint Call for Climate Action for Equitable Development released this day,” the statement read.

The ACG is a strategic alliance that provides a coordinated response to development finance.

Since its establishment in 1975, ACG has been instrumental in developing economies and communities for a better future, providing more than 5,000 development loans in the public sector to over 130 countries around the globe.

Muhammad Al Jasser, President and

Group Chairman of the Islamic Development Bank (ISDB), said that the Bank is proud to support the ACG Declaration on Climate Action, “this commitment comes while ISDB is ramping up its level of climate finance in its operations which, in 2021, reached 31 percent.”

The President further said that the Bank has made an ambitious target to have 2025 at least 35 percent of its financing as climate finance.

“ISDB is also pledging to approve at least $13 billion in adaptation and mitigation finance during the period 20232030,” he said.

The ACG will strengthen global partnerships to provide solutions to the adaptation, mitigation needs of developing countries and contributing to climate finance flows, according to the statement.

“The ACG’S sizeable financing represents decisive and collective action to address one of the world’s most urgent challenges,” said, Abdulhamid Alkhalifa, OPEC Fund Director-general.

“Climate action and development must be tackled simultaneously.

“As a committed member of the ACG, the OPEC Fund will contribute to this pledge with the implementation of our recently announced Climate Action Plan, which will double the share of climate financing to 40 percent of all new financing by 2030 and mainstream climate action into our project cycle,” he said.