Strategies to Enable a Low-carbon Transition in Africa

The use of fossil fuel energy sources has been identified as a major contributor to the emission of greenhouse gases (GHG) worldwide. For this reason, the global community has encouraged countries to have a climate action plan to scale up a transition to cleaner energy sources. This global climate action also pressures carbon-reliant countries to develop strategies to enable a low-carbon transition.

For most carbon-reliant African countries, transitioning to cleaner energy sources may not be a priority, and why should it be, some may ask? According to a CDP Africa report, the continent accounts for 3.8 per cent of global greenhouse gas emissions. This is the smallest share from any region. However, despite the relatively low emissions rate, the region, which is home to the poorest countries, is the most susceptible to the effects of climate change. According to the Global Climate Risk Index 2021, despite the poorest countries contributing the least to greenhouse gas emissions, they are impacted the most by climate change due to already-existing global inequalities.

However, if the continent is to enable a low-carbon transition, a lot of existing challenges must be overcome. One of the most pertinent of these challenges is getting access to funding. As already established, most of the world’s poorest countries are in Africa. Hence, the development of clean energy sources on the continent would require a lot of funding investment by the international community.

Nigeria, for instance, launched its Energy Transition Plan (ETP) in August 2022. The ETP is a decarbonisation framework focusing on five of the nation’s sectors, namely: power, transport, cooking, oil and gas, and industry. However, the government has stated that to implement the plan up to 2060, the country would need a total of $1.9 trillion in investments. Although there are currently in-country programmes and projects worth $23 billion, Nigeria still needs a lot of funding if it is to implement its ETP successfully.

Also, African countries can implement policy strategies to enable the development of clean energy projects. For example, in Nicaragua, there are tax exemptions from Import Custom Duties (DAI), Value Added Tax (VAT) and Income Tax (IR) on clean energy projects. National policies like these would incentivise investors and developers to scale up the development of renewable energy projects on the continent.

Despite the fact that Africa contributes meagrely to global greenhouse gas emissions, the continent is in a disadvantageous position to the effects of climate change. This is because Africa’s socio-economic condition widens the consequences of climate change which come in the form of flooding, droughts, and heat waves, among others. However, for the continent to implement strategies that enable a low-carbon transition, it needs policy developments and adequate funding from both local and international spaces.