On Monday, the Arab Energy Fund (formerly known as APICORP) announced its intention to invest up to $1 billion in carbon removal technologies over the next five years.
The fund, a multi-lateral financial institution, primarily focuses on the Middle East and North Africa region.
This planned investment and the fund’s new name are part of a five-year strategy until 2028 aimed at supporting the transformation of the “energy landscape in the Middle East and North Africa towards a future with net-zero emissions.”
The announcement was made at the United Nations Climate Change Conference (COP28) in Dubai.
Khaled Ali Al-Rouei, the fund’s CEO, stated in a press release, “Our strategy involves diversifying investments by supporting technological advancements to enhance energy efficiency and promote sustainable efforts in carbon removal.”
The institution, which has received an investment-grade credit rating from major credit rating agencies, issued green bonds for a five-year term worth $750 million following the establishment of a green bond framework in 2021.
So far, the fund has allocated $610 million to eleven projects in the region.
According to the statement, the institution currently allocates 18% of its $4.5 billion loan portfolio to support environmental and social responsibility initiatives.
APICORP was founded in 1974 by ten Arab oil-exporting countries. Its headquarters are in Saudi Arabia, and it has assets exceeding $8 billion, according to its official website.
