ADFD outlines roadmap to scale climate finance, accelerate global energy transition

Abu Dhabi Fund for Development (ADFD) has published a knowledge paper outlining how development finance institutions can mobilise capital, reduce investment risk and accelerate the global energy transition across developing economies.

Titled ‘Investing in a Sustainable Future: ADFD’s Climate Initiatives’, the publication examines the role of innovative financing models, blended capital structures, and strategic partnerships in addressing the global climate investment gap and enabling the deployment of renewable energy projects at scale.

The paper comes at a time when the transition to a net-zero, climate-resilient global economy is estimated to require US$7.6 trillion in annual investment through 2030.

The paper highlights how development finance institutions can act as catalysts in reducing investment risk, mobilising private capital, and supporting long-term projects that deliver measurable economic, social, and environmental outcomes.

Building on this framework, the publication outlines ADFD’s evolving climate finance portfolio over the past decade, anchored 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, while IRENA contributes technical expertise, including project identification and screening, due diligence, and global convening capacity.

This partnership has enabled the mobilisation of approximately US$350 million across 26 renewable energy projects, benefiting an estimated 4.5 million people.

The report also highlights the Energy Transition Accelerator Financing Platform (ETAF) as an innovative climate finance mechanism that convenes development and commercial banks, asset managers, insurers, renewable energy developers, and project operators.

It links 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 US$4 billion in funding pledges and supported 92 projects representing 6.2 GW of potential installed renewable energy capacity.

In parallel, ADFD’s US$1.5 billion cooperation framework with the International Finance Corporation (IFC) advances climate and food security priorities while catalysing private sector mobilisation and expanding the range of financing available for sustainable development, with Masdar playing a key implementation role across flagship projects in Togo, Uzbekistan, Azerbaijan, and regional programmes in the Pacific and Caribbean.

Collectively, these efforts have translated into tangible financing outcomes across emerging markets, with ADFD supporting renewable energy deployment across Africa, Asia, Latin America, the Caribbean, the Pacific, and Central Asia.

These initiatives have contributed to expanded energy access, reduced emissions, job creation, and strengthened climate resilience in underserved regions.

Mohamed Saif Al Suwaidi, Director-General of the Abu Dhabi Fund for Development, said, “Climate action and sustainable development are 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. 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 between governments, development finance institutions, investors, multilateral organisations and technology providers to unlock the scale of capital required to accelerate climate and sustainable development objectives.

It also reinforces the importance of blended finance structures in mobilising institutional and private investment at scale.