(Bali, 11 December 2007) The Islamic Development Bank (IDB), the Muslim world's premier multilateral financial institution, announces plans to set-up a new Clean Energy Fund to further expand sustainable energy development services in its 56 member countries in the Middle East, Africa, Asia, Europe and Latin America.

Addressing a global gathering of Finance Ministers and international development finance chiefs meeting at the United Nations Climate Change Conference currently underway in Bali, IDB's President, His Excellency Dr Ahmed Mohamed Ali, signalled IDB's intention to establish a Clean Energy Fund to capitalise on Kyoto Protocol's Clean Development Mechanism (CDM) and to stimulate private sector participation in clean energy projects. To this end, Dr Ali held important talks in Bali with the top management of Bahrain-based Middle East & Asia Capital Partners.

Inaugurated by the President of Indonesia, His Excellency Dr Susilo Bambang Yudhoyono, this global finance gathering addressed the economic and financial implications of climate change. Presenting the IDB climate change agenda, Dr Ali said "IDB will assist its member countries in their efforts to improve energy efficiency and gradually adopt clean energy systems". He further added that "IDB will work with its member countries to adapt and climate-proof their national development and poverty reduction plans, in the framework of the United Nations Millennium Development Goals (MDGs) and beyond".

Dr Ali also underscored the importance of developing new technologies such as carbon dioxide capture and storage (CCS, as it is known). In this context, he commended Saudi Arabia's leadership role in establishing a new clean energy research and development fund, in partnership with Kuwait, Qatar and the United Arab Emirates. With US$300 already million committed by Saudi Arabia and US$150 million from each of the other three GCC States, this fund, which was originally announced at the 3rd OPEC Summit held in Riyadh in November 2007, has already received US$750 million from its founders. Dr Ali firmly believes this new research and development fund offers a unique opportunity for developing clean energy-focused partnerships between the concerned GCC States and IDB.

In 2006, IDB committed over US$400 million for projects in the power sector, bringing its aggregate commitments in this rapidly growing sector to around US$2.7 billion.