Clean energy company Abu Dhabi Future Energy (Masdar) and China’s Silk Road Fund (SRF) have signed a memorandum of understanding (MoU) to jointly invest up to $2.8bn in renewable energy projects.
Formalised during the 2024 United Nations Climate Change Conference (COP29), the co-investment agreement will support clean energy projects across nations participating in the Belt and Road Initiative (BRI).
According to the terms of the MoU, the two entities will establish a partnership targeting co-investment opportunities in renewable energy ventures that are developed, invested in, or operated by Masdar.
Masdar’s renewable energy portfolio spans the Middle East, Central Asia, Southeast Asia, and Africa, which are participants in the BRI.
This new collaboration aligns with Masdar’s ambition to achieve 100GW of renewable energy capacity by the end of this decade.
Masdar CEO Mohamed Jameel Al Ramahi said: “This collaboration between two companies with significant investments in renewable energy projects in emerging markets and the global south will provide a major impetus to efforts to advance the energy transition.”
The Silk Road Fund entails a renewable energy portfolio exceeding 7GW across Belt and Road regions, including the Middle East, Africa, Southeast Asia, and Latin America.
The fund prioritises sustainable development through partnerships with strategic and financial entities, supporting the United Nations’ goals for sustainability.
Silk Road Fund chairwoman Zhu Jun said: “The UAE is a key Belt and Road Initiative participant and one of the most important investment and trading partners for China.
“The partnership between Silk Road Fund and Masdar is a strong testament to both parties’ commitment to the development of sustainable energy on a global scale, and will act as an enabler to help further strengthen investment collaboration between the two countries.”
The BRI connects Asia, Europe, Africa, and other regions through a network of infrastructure and trade projects. It aims to foster economic, trade, and investment ties among participating nations.
The UAE has been a proactive BRI partner of the BRI since the initiative’s inception in 2013. It has invested $10bn in a joint China-UAE fund to support projects in East Africa.
Earlier this month, Masdar signed an agreement with the Ministry of Energy of Uzbekistan to develop a 1GW wind farm in the Mingbulak region.
