OPEC Fund and UNIDO Increase Cooperation to Advance the Clean Energy Transition

The OPEC Fund for International Development (the OPEC Fund) and the United Nations Industrial Development Organization (UNIDO) today signed a joint declaration to deepen their partnership for energy access and transition.

OPEC Fund Director-General, Abdulhamid Alkhalifa, and UNIDO Director General, Gerd Müller, also signed a US$1.5m technical assistance grant agreement, which will support the National Clean Cooking Transition Programme in Madagascar. The grant from the OPEC Fund will be primarily used to conduct detailed studies and pilot projects as part of the Madagascar clean cooking transition programme, which the OPEC Fund is financing through a US$35 million public sector loan. UNIDO and project partners will also develop a monitoring and evaluation framework for the implementation and measurement of expected development results, which can then be replicated in other countries.

The OPEC Fund’s Abdulhamid Alkhalifa said, “We are very pleased to expand our cooperation with UNIDO and to support our flagship clean cooking programme in Madagascar with UNIDO’s vast technical and advisory expertise, which is critical for an effective implementation. We continue to strengthen synergies with new and existing partners through the recently launched Climate Finance and Energy Innovation Hub and look forward to collaborating with UNIDO to help deliver the Sustainable Development Goals.”

UNIDO’s Gerd Müller said: “I am pleased to begin a new era of partnership with a new quality of cooperation with the OPEC Fund. As a start, UNIDO is working with the OPEC Fund to expand the use of clean fuels and technologies improving health and living conditions of communities in Madagascar. This partnership will make a difference as we plan to roll-out clean cooking solutions to 500,000 households in five cities across the country.”

In their joint declaration, both institutions confirmed their commitment to increase cooperation in advancing energy access and clean cooking, mobilizing public and private funds to support energy access, green transition, climate adaptation and resilience. Both institutions are also working to promote the private sector and the development of agro-industries and agri-business value chains.

The OPEC Fund was established in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. Its 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 more than US$24bn to development projects in over 125 countries with an estimated total project cost of US$190bn.