The UAE has pledged $4.5 billion to help accelerate the development of clean energy projects in Africa, the Cop28 Presidency has said.

Abu Dhabi’s clean-energy company Masdar, the Abu Dhabi Fund for Development, Etihad Credit Insurance, and Dubai-based renewable energy company AMEA Power will provide the funds.

Africa50, an investment platform established by African governments and the Africa Development Bank, has also joined the initiative, the Cop28 Presidency said in a statement at the Africa Climate Summit on Tuesday.

The platform, which was founded to help solve the continent’s infrastructure challenges, will help identify initial projects and connect to local implementing entities, the statement said.

“This initiative builds on the UAE’s track record of commercially driven, innovative blended finance solutions that can be deployed to promote the adoption of clean energy in emerging and developing nations,” said Dr Sultan Al Jaber, Cop28 President-designate.

“The initiative will prioritise investments in countries across Africa with clear transition strategies, enhanced regulatory frameworks and a master plan for developing grid infrastructure that integrates supply and demand.”

AMEA Power will help fund 5 gigawatts of renewable energy capacity in Africa by the end of the decade, mobilising $5 billion, with $1 billion in equity investments, and $4 billion from project finance.

The Abu Dhabi Fund for Development will provide $1 billion of financial assistance, while the Etihad Credit Insurance will provide $500 million of credit insurance to reduce risk and unlock private capital.

Africa’s installed renewable energy capacity is set to grow to more than 530 gigawatts by 2040, from about 54 gigawatts in 2020, according to the International Renewable Energy Agency (Irena).

Solar photovoltaic capacity will rise to 340 gigawatts and wind to 90 gigawatts.

The UAE is supporting Africa’s renewable energy push through initiatives such as Etihad 7, which aims to raise public and private sector funds to invest in the development of the sector. It aims to achieve 20 gigawatts of capacity to supply 100 million people across the continent with clean electricity by 2035.

On Monday, the UAE Carbon Alliance pledged to purchase $450 million in African carbon credits by 2030, as it seeks to connect the high-integrity supply of African carbon credits to high demand from the Middle East.

A non-binding letter of intent with the Africa Carbon Markets Initiative’s Advance Market Signal was signed by Sheikha Shamma bint Sultan, president and chief executive of the UAE Independent Climate Change Accelerators (UICCA), the climate change organisation said on Monday.

Africa could be a key supplier of green hydrogen to Europe, which is currently looking to diversify its energy mix following the reduction of Russian natural gas supplies, according to Rystad Energy.

More than 52 green hydrogen projects have been announced in Africa, with production set to reach 7.2 million tonnes by the end of 2035, the Norway-based consultancy said in a report in March.

Developing countries require about $1.7 trillion per year in the clean energy sector but only managed to attract foreign direct investment worth $544 billion in 2022, Unctad, the UN intergovernmental organisation that promotes the interests of developing countries in world trade, said in its World Investment Report in July.