In his recent address at the OPEC Fund for International Development Forum held in Vienna, Austrian capital, Saudi Arabia’s Minister of Finance, Mohammed Abdullah Al-Jadaan, emphasized that energy security is not a luxury but a vital foundation for comprehensive development and growth. He highlighted that the absence of energy security disrupts essential sectors such as healthcare, education, economic productivity, environmental sustainability, water extraction, and food security.
Al-Jadaan’s remarks served as a tribute to the OPEC Fund for International Development for organizing the forum, which aims to highlight the importance of economic reforms in enhancing nations’ resilience to financial and economic challenges while achieving sustainable development.
He pointed out that the economic reforms countries implement to foster prosperity and address developmental challenges must focus on securing basic needs for individuals and communities, particularly in combating energy poverty, which affects over 1.2 billion people globally.
In light of escalating geopolitical tensions, fluctuating markets, and increased global energy demand, Al-Jadaan stressed the urgent need for more secure and diversified energy sources. He called for strategic actions to diversify energy supplies, bolster investments in clean technologies, and adopt innovative financing solutions to accelerate energy access and enhance long-term energy security.
Moreover, he outlined four key areas where multilateral development banks should effectively respond to these challenges. The first area involves supporting all energy sources without bias, while being cautious against implementing unrealistic emission reduction policies that could marginalize key energy sources or discourage investment therein.
The second focal point is providing concessional financing to expedite energy access for regions suffering from shortages. Al-Jadaan commended the ambitious “Mission 300” initiative aimed at providing energy access to 300 million people in Africa, which is spearheaded by the World Bank and supported by significant partners including the Islamic Development Bank and the OPEC Fund for International Development.
He also praised the “Forward7” initiative, part of Saudi Arabia’s Green Middle East initiative, which aims to deliver clean fuel solutions to millions globally. Since its launch, this initiative has seen collaboration with key partners across sectors, including the OPEC Fund for International Development, the Islamic Development Bank, the World Bank, and the International Islamic Trade Finance Corporation.
The third crucial area for multilateral development banks is to mitigate investment risks in the energy sector to encourage private sector participation. This can be achieved through various tools, including partial risk guarantees, insurance against political risks, and mixed financing structures.
The fourth dimension he mentioned pertains to increasing investments in emerging energy technologies, such as carbon capture, utilization, and storage (CCUS) and the development of more sustainable uses of hydrocarbons. These efforts are pivotal in addressing carbon emissions while ensuring energy security during the transition towards net-zero emissions.
Al-Jadaan firmly stated that the consequences of energy poverty transcend borders, impacting all nations through economic instability, heightened migration pressures, or increased humanitarian burdens.
Saudi Arabia is actively collaborating with global stakeholders to strengthen energy security and eradicate energy poverty, while also addressing climate change. The Kingdom has set an ambitious target of generating 50% of its electricity from renewable sources by 2030 and achieving net-zero emissions by 2060, all within the framework of a circular carbon economy.
He underscored the necessity of collaboration among all countries to bolster energy security, which he deemed the optimal pathway to achieve equitable and sustainable development that benefits everyone.
