Saudi Gazette report

VIENNA — Saudi Minister of Finance Mohammed Al-Jadaan said that multilateral development banks must provide concessional financing to accelerate the response to the needs of regions suffering from energy insecurity.

During his speech at the inaugural session of the fourth Development Forum of OPEC Fund for International Development in Vienna on Tuesday, he emphasized that Saudi Arabia is working with everyone to enhance energy security and eradicate energy poverty, while continuing its efforts to combat climate change.

Al-Jadaan praised the "My Mission 300" initiative, co-led by the World Bank and the African Development Bank, which aims to provide energy access to 300 million people in Africa by 2030, with significant contributions from partners such as the Islamic Development Bank and the OPEC Fund for International Development.

Al-Jadaan also lauded the Forward 7 Clean Fuel Solutions for Food initiative, one of the Green Middle East initiatives announced by Saudi Arabia, which aims to provide clean fuel solutions to millions of people around the world. He pointed to cooperation with key partners in this sector, such as the OPEC Fund for International Development, the Islamic Development Bank, the World Bank, and the International Islamic Trade Finance Corporation.

Al-Jadaan addressed the importance of reducing investment risks in the energy sector to stimulate private sector participation. "This can be achieved through a range of tools such as partial risk guarantees, political risk insurance, and blended financing structures," he said while emphasizing that these tools contribute to reducing expected risks and enhancing project bankability, especially in low-income or high-risk countries.

Al-Jadaan called for increased investment in emerging technologies in the energy sector, such as carbon capture, utilization, and storage (CCUS), and the development of more sustainable uses of hydrocarbons such as gas. He noted that this contributes to addressing carbon emissions and ensuring energy security during the transition to net-zero.

Al-Jadaan noted that the repercussions of energy poverty know no boundaries and affect all countries through economic instability, increased migration pressures, and increased humanitarian burdens. He stated that the Kingdom has set an ambitious goal of generating 50 percent of its electricity needs from renewable sources by 2030 and achieving net-zero emissions by 2060. This is within the framework of the circular carbon economy model.

The Development Forum, under the theme "A transition that empowers our tomorrow," will spotlight inclusive growth, climate resilience and the power of South-South cooperation in advancing equitable and sustainable development.

OPEC Fund President Abdulhamid Alkhalifa opened the Forum alongside President Mohamed Ould Ghazouani of Mauritania and Minister of Finance Mohammed Al-Jadaan. Senior government officials from across Africa, Asia, the Middle East, Latin American and the Caribbean, along with heads of multilateral institutions, are attending the forum aimed to drive solutions to some of the world’s most pressing challenges.