The ETAF is a global finance platform managed by IRENA (international Renewable Energy Agency). Their purpose is to advance the clean energy transition in emerging and developing economies by facilitating access to funding for projects and building out a strong pipeline of investment-ready projects from IRENA’s member countries. The ETAF will leverage the capital of their funding partner to create innovative financial solutions to fully scale the ability of renewable energy technologies in developing countries.
An inclusive, multi-stakeholder climate finance solution to advance the global energy transition
- The ETAF Platform launched in 2021 aims to mobilize approximately US $1 billion to support the energy transition by 2030.
About ETAF
ETAF benefits from the institutional convening power of IRENA, the United Arab Emirates (UAE), and Abu Dhabi Fund for Development (ADFD), their commitment to accelerate deployment of low-carbon proven technologies, and track record of the IRENA-ADFD Facility implemented during 2013-2020.
The IRENA/ADFD Facility co-financed 26 renewable projects in 21 developing countries, creating socioeconomic and climate resilience benefits for over 4 million people in their communities.
The UAE via the ADFD anchors the ETAF with an allocation of USD 400 million to support renewable energy projects in developing countries, members of IRENA. IRENA will manage the ETAF platform and facilitate the Funding Partners access to a pipeline of project opportunities.
Strategy
- Building and channeling a robust pipeline of investment-ready projects from IRENA's member countries, with a keen focus on developing countries.
- Matchmaking funding of RE projects, subject to ETAF’s Funding Partners’ due diligence and credit approval processes.
- Capitalizing on the complementarities of the Funding Partners resulting in innovative financial solutions to scale up renewable energy technologies.
What ETAF offers:
PROJECT DEVELOPERS: ETAF is open to review commercially feasible projects
A) Access to funding via an Open Climate Finance Platform
- ETAF offers developers access to funding provided by its Partners as well as other co-funding sources collaborating with IRENA
B) Technical Assistance
- ETAF offers developers access to IRENA resources and experts providing curated guidance and technical assistance targeted to local and regional developers
- ETAF’s team will hold a rolling “Call for Projects”, and periodically conduct activities to offer guidance on projects’ registration and submission process, eligibility, and selection criteria
FUNDING PARTNERS – The UAE and ADFD are the first funding partners. The ETAF will incorporate new Funding Partners during 2022-2023.
b) Co-Financing and Co-Investment Opportunities
- ETAF offers access to co-financing/ co-investment opportunities with its Partners based on a common approach to credit risk, objectives, and procedures.
c) Funding Partners’ Credit and Risk Procedures
- ETAF offers access to co-financing/ co-investment opportunities with its Partners based on a common approach to credit risk, objectives, and procedures.
Climate Investment Platform (CIP)
The Climate Investment Platform is a partnership that facilitates investments in climate action. The platform is an innovative channel to help mobilize financing for climate action. They collaborate with governments, financial institutions, private sector companies and project developers to increase access to funding and help countries reach climate targets.
What they do
The CIP is focused on supporting countries to help them attract private and public investment in the transition to clean energy
- Provide technical assistance to help countries develop clean energy targets that can be communicated as a part of their Nationally Determined Contributions (NDCs).
- Declutter and streamline policy support systems for clean energy policies, using a network of experts to give clients the necessary tools to design, implement, and enforce sustainable energy policies that meet national priorities and needs.
- Facilitate access to risk transfer and mitigation products by providing technical knowledge and assistance with project preparation
- Act as a platform to manage investment in clean energy projects by matching project sponsors and investors and organizing agreement of project proposals.
