UAE and US officials announced that $20 billion will be allocated to fund 15 new gigawatts (GW) of clean and renewable energy projects in the US before 2035, led by UAE’s Masdar and a consortium of US private investors.

This first wave of investments under PACE will be financed through $7 billion in cash equity from the private sector that will catalyze $13 billion through US debt financing and other instruments.

Launched in November 2022, PACE’s goal is to catalyze $100 billion in financing, investment, and other support and deploy 100 gigawatts (GW) of clean energy by 2035. It will cover a wide range of proven and emerging technologies, including private and public sector support, and reach broadly into developed and developing economies.

“As the international community prepares to take stock of global climate progress at COP28 in the UAE, this multi-sectoral partnership is a transformative step to advance mitigation and adaptation through the pragmatic investment and deployment of clean energy projects across the US, UAE, and emerging economies around the world. We are confident that this partnership will provide a new model of cooperation that unites global efforts on the path to COP28 towards achieving meaningful progress,” Al Jaber said.

PACE financing will support established renewable energy sources like solar and nuclear, as well as new applications such as green hydrogen and carbon capture. In line with its focus on elevating climate action and ensuring a just transition, PACE will prioritize efforts to deliver technical, project management, and funding assistance for commercially and environmentally sustainable energy projects across the Global South.