The World Bank's International Finance Corporation has financed and mobilised $7.7 billion in capital for climate-related schemes in the year to June as it continues to help public and private sector projects gain access to funding despite rising interest rates and amid a weakening economic outlook.
The multilateral lender invested $4.4bn into development schemes and financing deals from its own account and mobilised $3.3bn from the private sector in the previous financial year that ended on June 30, the IFC’s global head and director of climate business, Vivek Pathak, told The National.
The $7.7bn — about 35 per cent of the IFC's account — achieved in the 12 months to June 30 is in line with $7.6bn in aggregate achieved for the same period in 2021, but the multilateral lender aims to surpass the 2022 tally in the current 12-month period.
“The climate change action plan that we presented to the board about 15 months ago is basically that we do 35 per cent of our own account in climate [financing],” Mr Pathak said.
“However, we've got ambitious targets as part of our capital increase commitments. Effectively, we have to do more … obviously, as the climate person, I want to do more.”
The IFC is seeing “new opportunities emerging” in climate credit, and “we are hoping to at least be able to meet that target, if not exceed that 35 per cent that we've set for ourselves”, he said.
Compared to commercial banks and some of the other financial institutions, achieving the 35 per cent target is “ambitious, I would argue”, Mr Pathak added.
Climate financing has taken centre stage as the global economy continues its shaky recovery from the pandemic-driven slowdown.
Clean energy investment in developing and emerging economies alone needs to increase by more than seven times — from less than $150bn in 2020 to more than $1 trillion by 2030 — to put the world on track to reach net-zero emissions by 2050, according to a joint report by the International Energy Agency, the World Bank and the World Economic Forum.
The frequency and severity of climate-related disasters have intensified in the past two decades, with droughts in North Africa, Somalia and Iran; epidemics and locust infestations in the Horn of Africa, fires in Australia and severe flooding in Pakistan that killed thousands and racked up damages in excess of $30bn.
So far this century, climate disasters in the Middle East and Central Asia have injured and displaced 7 million people, caused more than 2,600 deaths and resulted in $2bn in damage in an average year, Kristalina Georgieva, managing director of the International Monetary Fund, said in March.
The pledge to mobilise $100bn in funding a year from developed countries to developing nations has yet to materialise. However, if global leaders unite on a systemic net-zero transition, the global economy could get a $43tn boost in the next 50 years, an increase of 3.8 per cent in the size of world economy by 2070, according to a Deloitte report.
Inaction on climate change, however, could cost the world’s economy $178tn in the next five decades, the report added.
Despite pressing financing needs, the cost of borrowing for public and private developers for climate-related projects has increased amid spiralling inflation and subsequent interest rate increases by central banks around the world.
One way governments can counter that is to bring private sector investors on board as partners for bankable climate projects, Mr Pathak said.
“We encourage governments to reform, open up sectors and make it attractive for private capital. The more you attract private capital, the more competition there is, the more prices will be driven down,” he said.
Governments and the private sector should invest in environmental, social and governance of climate-related projects as part of their spending plans, rather than treating them as separate items.
“Yes, interest rates are going up [but] I don't look at climate or ESG as a separate investment. It has to be integrated into everything we do,” he said.
By and large, climate should be integrated into “the daily thinking of our clients”, who sometimes may need “concessional finance upfront” for the projects, which is very critical to keep products and services affordable in some areas.
The IFC, based in Washington, is the largest global development institution focused on the private sector in developing countries.
It teams up with entities from start-ups to venture capital companies, financial institutions and private companies to boost economic activity to support the climate and gender agendas.
In the financial year 2022, the IFC invested $23.1bn in long-term funding and $9.66bn in short-term financing in private companies and financial institutions.
Until the end of May this year, the IFC’s aggregate cross-border investments in GCC-based companies stood at $5.1bn from its account and $3.4bn it has mobilised, financing 148 projects worth $22bn.
The IFC is leading a $94 million financing package for a subsidiary of Abu Dhabi’s clean energy company Masdar that will finance the first wind power plant in Uzbekistan.
In May, the lender provided a $30m loan to help waste management company Averda continue its planned growth in Oman, Morocco and South Africa.
Last year, Abu Dhabi's National Central Cooling Company, known as Tabreed, teamed up with the IFC to expand in India through a jointly owned holding company.
The lender will continue to form partnerships with UAE-based entities as “they have the capital” as well as the “ambition”, Mr Pathak said.
“So they're really perfect partners for us as they expand into emerging markets.”
IF YOU GO
The flights: FlyDubai offers direct flights to Catania Airport from Dubai International Terminal 2 daily with return fares starting from Dh1,895.
The details: Access to the 2,900-metre elevation point at Mount Etna by cable car and 4x4 transport vehicle cost around €57.50 (Dh248) per adult. Entry into Teatro Greco costs €10 (Dh43). For more go to www.visitsicily.info
Where to stay: Hilton Giardini Naxos offers beachfront access and accessible to Taormina and Mount Etna. Rooms start from around €130 (Dh561) per night, including taxes.
Visit Abu Dhabi culinary team's top Emirati restaurants in Abu Dhabi
Yadoo’s House Restaurant & Cafe
For the karak and Yoodo's house platter with includes eggs, balaleet, khamir and chebab bread.
Golden Dallah
For the cappuccino, luqaimat and aseeda.
Al Mrzab Restaurant
For the shrimp murabian and Kuwaiti options including Kuwaiti machboos with kebab and spicy sauce.
Al Derwaza
For the fish hubul, regag bread, biryani and special seafood soup.
A little about CVRL
Founded in 1985 by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, the Central Veterinary Research Laboratory (CVRL) is a government diagnostic centre that provides testing and research facilities to the UAE and neighbouring countries.
One of its main goals is to provide permanent treatment solutions for veterinary related diseases.
The taxidermy centre was established 12 years ago and is headed by Dr Ulrich Wernery.
'The worst thing you can eat'
Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.
Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines:
Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.
Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.
Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.
Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.
Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.
COMPANY%20PROFILE
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We Weren’t Supposed to Survive But We Did
We weren’t supposed to survive but we did.
We weren’t supposed to remember but we did.
We weren’t supposed to write but we did.
We weren’t supposed to fight but we did.
We weren’t supposed to organise but we did.
We weren’t supposed to rap but we did.
We weren’t supposed to find allies but we did.
We weren’t supposed to grow communities but we did.
We weren’t supposed to return but WE ARE.
Amira Sakalla
Ferrari 12Cilindri specs
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Price: From Dh1,700,000
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Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
UAE currency: the story behind the money in your pockets
Tips to stay safe during hot weather
- Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
- Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
- Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
- Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
- Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
- Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
- Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
Key figures in the life of the fort
Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.
Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.
Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.
Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.
Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.
Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.
Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.
Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.
Sources: Jayanti Maitra, www.adach.ae
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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