ABU DHABI – The Abu Dhabi Fund for Development (ADFD) has published a knowledge paper outlining how development finance institutions can mobilise capital, reduce investment risks and accelerate the global energy transition across developing economies.
Titled Investing in a Sustainable Future: ADFD’s Climate Initiatives, the paper examines the role of innovative financing models, blended capital structures and strategic partnerships in addressing the global climate investment gap and enabling renewable energy projects to be deployed at scale.
The publication comes as the transition to a net-zero, climate-resilient global economy is estimated to require $7.6 trillion in annual investment through 2030.
The paper highlights the role of development finance institutions as catalysts for reducing investment risks, mobilising private capital and supporting long-term projects that deliver measurable economic, social and environmental outcomes.
Against this backdrop, the publication outlines ADFD’s evolving climate finance portfolio over the past decade, supported by strategic partnerships with leading global energy institutions.
Through its collaboration with the International Renewable Energy Agency (IRENA), ADFD provides concessional sovereign-backed financing and project funding. At the same time, IRENA contributes technical expertise, including project identification and screening, due diligence and global convening capacity.
The partnership has helped mobilise approximately $350 million across 26 renewable energy projects, benefiting an estimated 4.5 million people.
The paper also highlights the Energy Transition Accelerator Financing Platform (ETAF) as a climate finance mechanism that brings together development and commercial banks, asset managers, insurers, renewable energy developers and project operators.
ETAF connects bankable projects with funding partners, de-risking instruments and technical assistance to strengthen the pipeline of viable clean energy investments in emerging markets.
Since its launch, ETAF has mobilised more than $4 billion in funding pledges and supported 92 projects representing 6.2 gigawatts of potential installed renewable energy capacity.
In parallel, ADFD’s $1.5 billion cooperation framework with the International Finance Corporation (IFC) supports climate and food security priorities while helping mobilise private sector investment and expanding financing options for sustainable development.
Masdar plays a key implementation role across flagship projects in Togo, Uzbekistan and Azerbaijan, as well as regional programmes in the Pacific and Caribbean.
Collectively, these initiatives have translated into financing outcomes across emerging markets, with ADFD supporting renewable energy deployment across Africa, Asia, Latin America, the Caribbean, the Pacific and Central Asia.
The initiatives have contributed to expanded energy access, lower emissions, job creation and stronger climate resilience in underserved regions, according to the paper.
Mohamed Saif Al Suwaidi, Director-General of ADFD, said climate action and sustainable development were inseparable.
“As developing countries seek to meet rising energy demand while strengthening resilience to climate change, innovative financing mechanisms and effective partnerships have become increasingly critical,” he said.
“Through this knowledge paper, we share lessons from more than a decade of climate-focused investments and partnerships that demonstrate how development finance can accelerate progress towards a more sustainable future.”
The publication also outlines ADFD’s approach to climate and renewable energy financing through bilateral cooperation, multilateral partnerships, regional funds and private sector engagement.
Looking ahead, the paper highlights the need for deeper collaboration among governments, development finance institutions, investors, multilateral organisations and technology providers to unlock the scale of capital required to advance climate and sustainable development objectives.
It also underscores the importance of blended finance structures in mobilising institutional and private investment at scale.
