African countries have been at a crossroads of whether to continue adopting the green energy transition in full throttle, or tap into the myriad economic opportunities, presented by the Russian-Ukraine war.
African gas has gained prominence in the global energy market pertinently from Europe, as it seeks to wean itself off Russian gas, through its ‘REPowerEU Plan’. The Plan is targeted at saving energy, producing clean energy and diversifying energy supplies. Hence, oil and gas producing countries in Africa, have been rushing to cash in on this ‘dash for gas.’
Oil and natural gas-producing countries in Africa like Mozambique, Nigeria, Libya, Egypt, Cameroon, DRC, Angola, Namibia, Algeria, Ghana, Gabon, Mozambique and Equatorial Guinea among others; have an invaluable window of opportunity, to contribute largely to the global energy landscape. These nations have been facing the dilemma of whether to give in to pressure from the West, to switch from fossil fuels to cleaner forms of energy, or explore and pursue economic gains by tapping into the global energy crisis.
However, during the recently held COP27 in Sharm el-Sheikh, Egypt; African climate groups and activists protested against this new scramble for Africa’s gas and fossil fuels. Albeit Africa has made significant efforts in embracing renewables such as off-grid solar, wind, geothermal, hydroelectric and green hydrogen. Indeed, more investments are needed as the continent’s energy needs are insurmountable, given the 640 million people in the continent lacking electricity access.
The ‘Don’t Gas Africa’ coalition of advocacy groups was a key protester at the event. The group decried the renewed investments in Africa’s natural gas by European governments, which is already retrogressing the continent’s green energy transition. Furthermore, the group’s campaign called on European governments to reaffirm the COP26 Glasgow Statement, to halt investment in new gas and oil projects. Just as with cases of colonial violence meted out on Africans, that Europe has been paying reparations for and not forgetting the French environmental injustice of testing nuclear weapons in the Algerian Sahara; activists advocate that Europe should similarly pay for the loss and damage, caused by the climate quagmire by heavily investing in renewable energy.
Under the theme ‘Supporting Climate Resilience and a Just Energy Transition in Africa’, the continent’s green energy shift was deemed a dire necessity in the wake of the myriad climate-induced natural disasters across the continent. The UN Secretary General, Antonio Guterres in his address at COP27, noted that failure to adopt green energy sources, would put the world “on the highway to climate hell with our foot on the accelerator.”
Beyond the shadow of a doubt, Africa’s development is pegged on energy and ultimately the green transition. The continent contributes a paltry 3% of global total greenhouse gas (GHG) emissions, which is the lowest by any region, but suffers the worst ramifications of the climate change crisis.
The UN predicts that Africa will be one of the most severely impacted regions in the world by climate change, marked by declining agricultural yields, massive food insecurity, widespread water stress, malnutrition and a host of other severe signs.
The major objectives of the Africa-EU partnership established in 2020, is to focus on the green transition, incorporating renewable energy sources. In light of this, the EU announced a €150 billion investment plan for Africa. Conversely, in July 2022, during the 41st Ordinary Session, the AU Executive Council adopted the ‘African Common Position on Energy Access and Just Transition’. This is a comprehensive approach that charts Africa’s short, medium, and long-term energy development pathways, to accelerate universal energy access, and transition without compromising its development imperatives. By the same token, the Common Position stipulates that Africa will continue to deploy all forms of its abundant energy resources, including renewables and non-renewables, to address energy demands.
Natural gas, green and low carbon hydrogen and nuclear energy will therefore be expected to play a crucial role, in expanding modern energy access in the short to medium term. In addition, the green energy transition which is basically the uptake of renewables will be enhanced in the long term, for a low carbon and climate-resilient trajectory. To boot, it encourages striking a balance between ensuring access to electricity, to catalyzing the much-needed socio-economic growth in Africa. This will ensure a smooth transitioning towards an energy system based on renewable and clean energy sources, matching the ambitions of Agenda 2063.
The Agenda highlights under one of its key goals, the achievement of environmentally sustainable and climate resilient economies and communities. Key priority areas under it are climate resilience and natural disaster preparedness, coupled with conservation and sustainable natural resource management. This is directly interlinked to the United Nations Sustainable Development Goals (SDGs), on ensuring access to affordable, reliable, sustainable and modern energy for all under Goal 7. Moreover, Goal 13 also advocates for taking urgent action to combat climate change and its impacts.
Africa is still within the United Nations 2016-2025 Third Industrial Development Decade for Africa (IDDA III). One of the key components of the green energy shift is green manufacturing. The Economic Commission for Africa (ECA) report on Greening Africa’s Industrialization, highlights that it’s imperative for African countries to identify green industrialization entry points, set policies that support green industrialization and mobilize resources from the public and private sectors, as it’s a precondition for sustainable and inclusive growth.
In addition, with perspective to the 2021 Mckinsey’s Africa’s Green Manufacturing Crossroads report, Africa’s green transition could create a net 3.8 million jobs. However, this warrants an initial investment of US$2 trillion in manufacturing and power. Furthermore, the report estimates that by 2050, African emissions from manufacturing could more than double. This is with perspective to Africa’s vulnerability to climate change, should commitments to decarbonize emissions lack adequate support. Moreover, the report indicates that Africa’s lack of industrial development puts it in a strong position, to leapfrog high emitting technologies and develop low-carbon manufacturing. This without incurring expensive future costs of transitioning from fossil fuel-based factories to renewables.
Read Also: 2021 World Environment Day: Africa Well-Poised for Ecosystem Restoration
Climate Financing in Africa
Climate finance was a key topic for discussion at COP27, as it has been a major roadblock impeding the swift uptake of renewables and making the green energy transition a reality thereof. Developed nations had made a pledge to provide US$100B annually to Africa’s economies, to aid in the green transition. Presently, according to the UN, the pledges have only reached US$83B. UNEP has been working with countries, financial regulators and finance sector to align financial systems to the 2030 SDGs. Projects that fall under the green finance umbrella include the reduction of industrial pollution and lowering the carbon footprint, climate change mitigation, biodiversity conservation, promotion of renewable sources of energy plus energy efficiency, circular economy initiatives, sustainable use of natural resources and many more. Undisputedly, unlocking finance is paramount to achieving the set African Nationally Determined Contributions (NDCs), hence the need for innovative approaches to attract and steer financial flows consistent with them.
Green bonds have been an effective financial tool to moving institutional capital, to priority economic sectors in the global economy. The US, China and France are the three biggest issuers of green bonds. The Green Climate Fund (GCF), has allocated half of its US$4.6 billion global portfolio to African climate projects.
Is Africa ready to Harness Opportunities from the Green Energy Shift?
Evidently, Africa has been bearing the brunt of climate-induced natural disasters. From severe droughts and famine; tropical storms across Eastern and Central Africa; massive cyclones in Southern Africa; floods; plague of locusts; heat waves and unpredictable weather patterns. Inarguably, the climate crisis needs urgent redress and making the green energy shift has become a dire necessity. However, with energy security under threat, climate policies and commitments such as the green energy transition, seem to have been moved to the back burner. The massive energy needs in Africa for industrialization and numerous other uses in different sectors, cannot be solely met by renewable energies alone.
Africa is not quite ready to bid farewell to fossil fuels and fully adopt the green energy transition, given the newly found ‘dash for gas’; which spells unbound economic growth and development, desperately needed to reduce poverty levels. In addition, the increased revenues from oil and gas exports are projected to create more jobs, and support national development goals in respective countries. This has been evidenced by the signed MoU, between Afreximbank and the African Petroleum Producers Organization (APPO), for the creation of an African Energy Transition Bank, to finance oil and gas projects on the continent. This is to support and increase financing and investment opportunities, for Africa’s oil and gas industry. Gas is vital for Africa’s transition, to steer development in a continent where 43 per cent of the population lacks power.
At COP27, it was recommended that different countries have the power to choose a path that is right for them. These remarks were made by the Oil Sustainability Programme deputy director of Saudi Arabia’s energy ministry, Dr. Gasem Fallatah. Furthermore, he added that Africa’s green transition needs to be inclusive, prioritizing the impact they have on the global energy ecosystem. Many governments view the green transition as a future plan after achieving substantial development. African governments have contracted international oil companies to reopen stalled gas projects.
German Chancellor Olaf Scholz visited Senegal in May to back the development of the Grand Tortue Ahmeyim (GTA) LNG gas project, projected to commence exporting gas to Europe in 2023. Later Polish President Andrzej Duda similarly made a trip there. Into the bargain, Italy has struck gas deals with Angola, Algeria and the Republic of Congo. Additionally, France, Portugal and Spain have been sourcing from Nigeria. Moreover, a report by ‘Don’t Gas Africa’ highlights that the EU has opened talks with the Nigerian government, to increase flows of fossil fuels into Europe. African countries with coal resources, have doubled profit margins, with the surge in demand from European buyers.
Read Also: Gabon’s carbon credit sale: silver bullet for economic revival?
Double Standards for Africa
Uganda’s President Yoweri Museveni in a blog post recently called out European nations for their return to use of coal-fired power plants, in the wake of the energy crisis, simultaneously advising African nations to stop the use of fossil fuels and make the green transition. Museveni noted that European nations needed to end their “brazen double-standards” and “hypocrisy”.
“It is morally bankrupt for Europeans to expect to take Africa’s fossil fuels for their own energy production, but advice against Africa using the same resource. We will not accept one rule for them and another rule for us. We will not allow African progress to be the victim of Europe’s failure, to meet its own climate goals,” he lashed out.
In reiteration, Billionaire Mo Ibrahim criticized developed countries of blatant hypocrisy, in dissuading African countries from exploiting and making profits from their vast gas reserves; whilst making investments in the same to meet their energy crisis. Furthermore, he lashed out at the global north for dictating how African countries should use their vast natural gas reserves, amid climate change concerns.
Currently, Europe’s energy plans for Africa remain ambiguous and self-centred at best at best, discouraging the use of gas and fossil fuels; whilst investing in energy projects and importing the lion’s share of what is extracted, now more than ever because of the crisis created by the war. EU has gone ahead to declare that natural gas now qualifies for green investments, to justify its actions.
Africa is not at all opposed to the green energy transition, but remains well poised to achieve this endeavour. However, this can only happen under its own terms devoid of any external pressures or influence in order to make it a JUST transition.
