The Abu Dhabi Future Energy Company, also known as Masdar, and China's Silk Road Fund have signed a memorandum of understanding (MoU) to explore co-investment opportunities in renewable energy projects.

The agreement, signed at the United Nations climate conference, COP29, held in Baku, Azerbaijan in November 2024, focuses on China's Belt and Road Initiative (BRI) countries in the developing world and the global south.

Masdar CEO Mohamed Jameel Al Ramahi and Silk Road Fund chairwoman Zhu Jun formalised the strategic partnership.

Mohamed Jameel Al Ramahi stated: “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. We look forward to a successful and rewarding partnership with Silk Road Fund.”

Under the MoU, Silk Road Fund plans to invest up to 20bn yuan ($2.8bn) in projects alongside Masdar, targeting renewable energy initiatives developed, invested in or operated by Masdar.

Masdar's investments span the Middle East, Central Asia, Southeast Asia and Africa, with many projects aligning with the BRI. The company aims to further expand its footprint in these regions to reach 100GW renewable energy capacity by 2030.

Silk Road Fund's renewable power portfolio exceeds 7GW in BRI regions, including the Middle East, Africa, Southeast Asia and Latin America. The fund collaborates with strategic and financial partners to support the United Nations' sustainable development goals.

Zhu Jun stated: “The UAE is a key BRI 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.

“We look forward to working with Masdar as well as other partners to jointly build ‘the Green Silk Road’ in the decades to come.”

The BRI connects Asia, Europe, Africa and other regions through infrastructure and trade projects, enhancing economic and investment interactions. The UAE has been an active partner in the BRI, investing $10bn in a joint China-UAE investment fund for BRI projects in East Africa.