African Focus The Africa Energy Bank: A Boon or Bane for Africa’s Energy Transition? by David Omata July 21, 2024 Published by David Omata Nigeria has recently won the bid to host the Africa Energy Bank (AEB). The bank’s establishment is a collaborative effort by the African Petroleum Producers Organization (APPO) and the African Export-Import Bank (Afreximbank), with the primary aim of tackling shortages in energy funding in Africa. The arrival of the Africa Energy Bank (AEB) is poised to significantly shift the African energy sector. However, the AEB’s approach raises critical questions about its impact on Africa’s energy transition goals. This Nextier’s Pan-African series analyses the AEB’s objectives of concurrently funding fossil fuels and renewable energy and its implications for the global drive to phase out fossil fuels. The energy crisis that Africa is currently experiencing is no longer news, as over 600 million people in the continent lack access to power, and over 900 million lack clean cooking options. The AEB’s initial focus on financing energy projects, including oil and gas ventures, responds to this dire situation to fill the void left by global institutions shying away from fossil fuels due to climate change concerns. This approach offers a lifeline to resource-rich African nations struggling to develop their energy infrastructure. The bank’s potential to unlock these resources and stimulate economic growth is undeniable. However, is this fossil fuel focus aligned with Africa’s long-term energy goals? Questioning the Sustainability Path The AEB’s commitment to a “balanced energy mix” seems reasonable since it intends to address Africa’s social and economic components of sustainability. However, supporting fossil fuels alongside renewables generates conflict because it may not mesh well with the environmental pillar of sustainability. While fossil fuels can provide immediate energy security, they also contribute to climate change, directly contradicting Sustainable Development Goal 7 (SDG 7) and net-zero emission targets. The AEB’s success depends on its ability to negotiate Africa’s interest in achieving energy access with the global interest in energy transition. Will it favour short-term advantages from fossil fuels, slowing the shift to greener energy sources? Or can it serve as a catalyst, investing in renewables while sustainably using fossil fuels to close the present energy gap? The Need for Transparency and Scrutiny Each African member nation is expected to donate at least $83 million to raise about $1.5 billion. The Africa Energy Fund’s (AFE) founding members, Afreximbank and APPO, are expected to provide equivalent cash. The remaining $2 billion is anticipated to be raised from outside sources, perhaps even Middle Eastern sovereign wealth funds. Based on the above funding breakdown, the AEB’s funding structure also demands scrutiny. While African nations contributing signifies ownership, reliance on potential funding from Middle Eastern sovereign wealth funds, often heavily invested in fossil fuels, could influence priorities. Transparency regarding project selection and environmental impact assessments will be crucial to ensure accountability. The Path Forward: A Delicate Balancing Act The AEB presents both opportunities and challenges. To truly benefit Africa, it must strike a delicate balance.• Can it foster investment in renewables while supporting responsible fossil fuel resource utilisation?• Can it implement stringent environmental safeguards and prioritise clean energy development in the long run?• Can it promote regional cooperation and knowledge-sharing to accelerate the adoption of innovative energy solutions? The answers to these questions will determine whether the AEB becomes a catalyst for a just and sustainable energy transition in Africa or a bar. Conclusion Establishing the Africa Energy Bank may put Africa’s energy future under critical scrutiny by global leaders. Will it keep the continent stuck on a fossil fuel-based course, or can it be a bridge to a sustainable future? How well the AEB can innovate and adapt will determine the solution. Even when declared, a “balanced mix” is insufficient. In addition to prudent, time-bound fossil fuel consumption, the bank requires a clear plan that prioritises sustainable energy development. Hence, achieving SDG 7 and climate targets requires transparent project selection processes and environmental evaluations. AuthorOmata David OmakojiTechnical Associate – Nextier Power July 21, 2024 0 comments 0 FacebookTwitterPinterestEmail
African Focus The Electricity Access Gap and its Implications for Human and Economic Wellbeing in Africa by David Omata June 15, 2024 Published by David Omata Clean and affordable electricity is central to modern human development. It provides the necessary infrastructure for health, education, and economic activities. In Africa, however, there remains a significant gap in electricity access, which has profound implications for human well-being and economic growth. This article explores the current state of electricity access in Africa, its impacts on human well-being, and the economic consequences of this gap while suggesting potential solutions to bridge this divide. Click here to download June 15, 2024 0 comments 0 FacebookTwitterPinterestEmail
Power Punch The Urgency for Nigeria’s Hydrogen Development Strategy by David Omata March 22, 2024 Published by David Omata Nigeria has made remarkable advancements in integrating hydrogen goals into its national energy strategies. However, these goals are contained in distinct documents in various government offices. Presently, no institution assumes exclusive responsibility for managing all aspects of the country’s green hydrogen energy agenda. Instead, multiple government bodies undertake diverse roles within the energy sector. This highlights the urgent need for Nigeria to develop a comprehensive hydrogen development strategy. The recent synthesis report from the GIZ Nigeria Energy Support Program outlined the roles and obligations of various agencies in Nigeria regarding hydrogen production. This includes entities with explicit hydrogen targets and those expected to have such mandates but currently do not. The report also indicates that the National Energy Policy (NEP), the National Energy Master Plan (NEMP), and the Energy Transition Plan (ETP) included provisions for H2 in Nigeria’s decarbonization strategy. The above situation calls for an urgent need to fill this conspicuous gap of the absence of a unified strategy specifically targeting hydrogen development. As other countries are already embarking on hydrogen strategies, Nigeria risks being left behind unless it swiftly formulates and implements its comprehensive plan for hydrogen utilization. Drawing insights from international experiences, particularly those of Australia, the European Union (EU), Germany, Saudi Arabia, Namibia, and South Africa, Nigeria can leverage the lessons and tailor a strategy that aligns with its unique context and aspirations. Learning from Global Experiences Australia, for instance, emphasizes the production and export of hydrogen while concurrently addressing domestic consumption needs. Australia aims to build cost-competitive production capabilities and stimulate global markets through phased implementation and establishment of hydrogen hubs. Similarly, the EU’s strategy prioritizes investments, research, and international cooperation, setting phased targets for hydrogen deployment while fostering demand through strategic partnerships and financial mechanisms such as the European Hydrogen Bank. Germany was focusing on its robust governance structure and targeted funding programs to support domestic and international hydrogen initiatives. They use mechanisms like the H2Global program, and Germany incentivizes investment to foster market competitiveness. Meanwhile, Saudi Arabia leverages its abundant renewable energy potential to pioneer green hydrogen production, strategically positioning itself in the global hydrogen economy. Namibia and South Africa also leverage the significance of coordinated efforts and strategic planning in realizing their hydrogen ambitions with clear goals, governance frameworks, and funding mechanisms in place. The Imperative for Nigeria’s Hydrogen Strategy Against this backdrop, Nigeria’s absence of a cohesive hydrogen development strategy becomes increasingly glaring. Despite having individual policies touching on energy and sustainability, there is a pressing need for a unified approach that explicitly addresses hydrogen utilization. A comprehensive hydrogen strategy, referred to as “The Hydrogen Document,” would serve as a roadmap to harmonize existing policies, capitalize on Nigeria’s vast renewable energy potential, and position the country as a critical player in the global hydrogen market. Recommendations • Policy Harmonization: The Hydrogen Document would consolidate and align existing energy and sustainability policies incorporating hydrogen elements. This may be done by streamlining efforts and ensuring coherence across sectors. By this, Nigeria can maximize the impact of its initiatives and avoid duplication of efforts. • Stakeholder Engagement: Engaging stakeholders from government, industry, academia, and civil society is paramount. Establishing advisory councils similar to Germany’s National Hydrogen Council would ensure diverse expertise and perspectives are considered in strategy formulation and implementation. • Investment Framework: Like the EU’s European Hydrogen Bank and Germany’s H2Global program, Nigeria should establish mechanisms to incentivize investment in hydrogen projects. Public-private partnerships and innovative financing models can mobilize capital and mitigate investment risks. • Research and Innovation: A robust research and innovation ecosystem is essential for technological advancements and market competitiveness. As demonstrated by Australia and the EU, collaboration with international partners can accelerate knowledge transfer and capacity building. • Capacity Building: Developing a skilled workforce capable of driving Nigeria’s hydrogen agenda is critical. Training programs, knowledge-sharing platforms, and educational partnerships will nurture talent and foster innovation in the hydrogen sector. • International Cooperation: Engaging with global hydrogen initiatives and forging partnerships with leading hydrogen-producing nations will facilitate knowledge exchange, market access, and technology transfer. Conclusion With the existing hydrogen road map and strategies by other countries, Nigeria stands a better chance to draw inspiration from international experiences. With this, the government can chart a path towards a hydrogen-powered future. The formulation and implementation of a comprehensive hydrogen strategy, encapsulated in “The Hydrogen Document,” will harmonize existing policies and catalyze investment, innovation, and socioeconomic growth for the nation and its people. Now is the time for Nigeria to seize the opportunity and embrace the hydrogen revolution. AuthorOmata DavidTechnical Associate- Nextier Power March 22, 2024 0 comments 0 FacebookTwitterPinterestEmail
African Focus Ghana’s Energy Transition Plan: Advancing Clean Cooking Solutions by David Omata March 22, 2024 Published by David Omata In September 2023, the government of Ghana unveiled its Energy Transition Plan (ETP) to achieve zero by 2060, marking a significant stride towards sustainable development. The ETP entails a substantial capital investment, estimated at a bare minimum of USD 550 billion by 2060, representing a USD 140 billion increase compared to business-as-usual (BAU) scenarios. Over 70% of these investments are earmarked for the power and transport sectors, primarily driving a comprehensive shift towards renewable energy sources and reducing carbon emissions. This ambitious initiative is projected to catalyze new economic activities within the energy sector, potentially creating up to 400,000 net new jobs by 2060. Ghana’s ETP outlines six key decarbonization technologies under the Orderly Transition Pathway. A significant portion, approximately 40%, of the required emissions reduction is expected to be achieved through transport electrification. These technologies include electrification and renewables, which involve displacing fossil fuel consumption with electricity sourced from solar, wind, geothermal, and possibly nuclear power, complemented by energy storage solutions. Carbon capture and storage technologies will also be deployed to capture CO2 emissions from industrial processes, while low carbon hydrogen will serve as a greener alternative for industrial and transportation needs. Battery electric mobility aims to replace internal combustion engines with electric batteries across various vehicle types. The plan also emphasizes the adoption of Clean Cooking Technologies to replace traditional biomass fuels with efficient electric biomass cookers and advocates for Negative-Emission Solutions like Bioenergy with Carbon Capture and Storage (BECCS) to mitigate carbon emissions effectively. Ghana is positioned to use this orderly transition pathway to embark on a sustainable path towards a low-carbon future, fostering economic growth while mitigating environmental impact. Advancing Clean Cooking Solutions Less than a year after adopting the ETP, Ghana has taken a significant step in embracing clean cooking solutions in collaboration with international partners and stakeholders to prioritize promoting clean cooking technologies. The recent authorization of the ‘Transformative Cookstove Activity in Rural Ghana’ is a testament to the country’s commitment to advancing clean cooking solutions. Through partnerships with organizations like ACT Group, Envirofit, and the KliK Foundation, Ghana aims to distribute improved cookstoves (ICS) to rural and peri-urban households, significantly reducing smoke and toxic emissions while cutting cooking fuel costs. According to the report by ACT, a leading global provider of market-based sustainability solutions, the authorization of this cookstove activity not only contributes to mitigating greenhouse gas emissions but also aligns with Ghana’s Sustainable Development Goals (SDGs). The proposed distribution of the 180,000 Improved Cookstoves (ICS) will improve the lives of 0.75 million Ghanaian citizens and create local job opportunities; the initiative addresses environmental and socio-economic challenges. Up to 10,000 deaths annually in Ghana are associated with air quality issues; the ICS technology mitigates this by decreasing smoke and toxic emissions in individual households by as much as 80%. Additionally, it trims cooking fuel costs by approximately 60%. Ghana’s readiness to achieve its energy transition plan, particularly in the clean cooking sector, is evident through several critical factors, as discussed below: • Policy Framework: Ghana has developed a comprehensive policy framework supporting clean cooking technologies through regulations, standards, and incentives; the government is promoting modern and low-carbon cooking solutions while addressing affordability and accessibility challenges. • International Cooperation: Ghana’s collaboration with international partners, including Switzerland, demonstrates its commitment to leveraging global expertise and resources to accelerate the adoption of clean cooking solutions. Bilateral agreements, such as the one signed at COP26, provide a legal framework for implementing greenhouse gas mitigation activities and ensuring environmental integrity. • Innovation and Monitoring: Ghana is embracing innovation and technology to enhance the effectiveness of its clean cooking initiatives. Digital monitoring and verification techniques, as exemplified by Envirofit’s state-of-the-art usage and performance monitoring strategy, ensure accountability and transparency in project implementation. • Community Engagement: Ghana recognizes the importance of community engagement and awareness in driving the adoption of clean cooking technologies. The government and its partners empower households to transition to cleaner and more sustainable cooking practices through targeted outreach programs, product demonstrations, and financial incentives. Conclusion Ghana has emerged as a frontrunner among its West African counterparts by taking this huge step to implement Improved Cookstoves (ICS) as part of its Energy Transition Plan to decarbonize the cooking sector. With this strategy, the nation is undoubtedly laying the groundwork for a more promising and sustainable future by meeting its citizens’ energy requirements while reducing environmental impact. AuthorOmata David OmakojiTechnical Associate – Nextier Power March 22, 2024 0 comments 0 FacebookTwitterPinterestEmail
African Focus Harnessing Tax Incentives to Accelerate E-mobility in Africa by David Omata March 8, 2024 Published by David Omata The transport sector remains a significant emitter of greenhouse gasses, responsible for approximately one-quarter of global emissions. Despite efforts to transition to cleaner energy sources, the fact sheet on climate change has shown that 95% of the world’s transport energy still relies on fossil fuels. The fact sheet also reveals that in 45% of countries, transport is the largest source of energy-related emissions; in others, it ranks as the second largest. The transport sector accounts for 57% of global oil demand and 28% of total energy consumption. In Africa, transport emissions are fast increasing from a low baseline. Between 2010 and 2019, Africa experienced a 27% increase in transport emissions, ranking second only to Asia (41%) according to the data from the SLOCAT partnership on sustainable low-carbon transport. The global target for a 60% share of battery-electric and plug-in hybrid vehicles by 2050 could save more than 60 billion tons of CO2 emissions. As the global transition towards electric vehicles (EVs) gains momentum, African nations must intensify their decarbonisation efforts in the transport sector through collective efforts against climate change to accelerate the adoption of EVs. This commitment is reflected in implementing policies centred on tax incentives and waivers to promote the uptake of electric vehicles across the continent. Overview of Countries’ E-mobility Tax Policies In a bold move towards sustainability, Ghana’s 2024 budget speech unveiled a series of tax incentives to promote the adoption of electric vehicles (EVs). These measures, including the waiver of import duties on electric vehicles for public transportation and incentives for registered EV assembly companies, mark a significant step towards reducing emissions and addressing traffic congestion issues in the country. The decision to waive import duties on electric vehicles for public transportation for eight years, coupled with similar incentives for locally assembled EVs, demonstrates Ghana’s commitment to fostering a greener transportation ecosystem. By extending the zero VAT rate on locally assembled vehicles, the government encourages domestic manufacturing and paves the way for sustainable mobility solutions. Ghana’s initiative reflects a broader trend across Africa, where several countries have taken steps to reduce or eliminate import duties and taxes on electric vehicles. From Tunisia to Kenya, Uganda, and other African countries, their governments recognise the importance of incentivising EV adoption to combat climate change and promote sustainable development. Tunisia’s 2023 financial act reduces customs tariffs on electric car charging equipment to 10% and lowers value-added tax to 7%. The Tunisian Ministry of Environment anticipates that these efforts will deploy 50,000 electric vehicles by 2025. According to the Ministry, this project is expected to dramatically reduce oil usage (5.9 million barrels) and fossil fuel imports by US$660 million between 2020 and 2030. These incentives indicate Tunisia’s commitment to sustainability and are consistent with broader efforts throughout Africa to promote environmentally friendly transportation options. The Kenyan government has unveiled plans to reduce excise duties on electric vehicles (EVs) from 20% to 10% to encourage the manufacturing of EVs within the country. Additionally, the Energy and Petroleum Regulatory Authority has implemented measures to regulate the price of charging stations nationwide. Lowering the taxes on EVs and regulating charging station prices will encourage investment in EV technology and infrastructure while addressing concerns about affordability and accessibility. Uganda’s 2023/2024 budget included several tax reforms, including eliminating import tariffs on electric vehicles (EVs) and hybrids, including electric motorbikes. This strategic initiative, as detailed in a paper by the Uganda Revenue Authority (URA), is based on encouraging the use of electric vehicles and reducing pollution. The tax breaks are intended to accelerate the transition to cleaner transportation choices, demonstrating a commitment to environmental sustainability and harmonising with global initiatives to promote greener practices in the car industry. According to Ethiopia’s current e-mobility policy, all-electric vehicles are now exempt from VAT, excise tax, and surtax. The only remaining tax is the customs tax, which has been reduced to 15% for fully assembled vehicles and 5% for semi-assembled ones. Completely knocked-down (CKD) vehicles assembled within Ethiopia are exempt from taxation. The Ministry of Transport and Logistics established charging stations in three locations within Addis Ababa before transferring the responsibility to the private sector. ConclusionAs Africa grapples with urbanisation, population expansion, and climate change challenges, the transition to electric cars appears as a critical potential for transformation.Africa can chart a course for a more sustainable and prosperous future through innovation and collaboration. The current development regarding tax incentives from several African countries is welcoming; however, it is critical to emphasise that increasing EV adoption necessitates comprehensive policies that promote equity for all and tax breaks. Supporting local entrepreneurs, increasing access to financing, and building technical expertise are critical activities for maximising the benefits of electric mobility throughout society. Tax incentives are essential for increasing electric car use in Africa, increasing the momentum toward greener transportation alternatives. With creative policies and strategic investments, Africa can lead a long-term mobility revolution to benefit current and future generations. We look forward to seeing these initiatives in Africa as we reach the net zero target. March 8, 2024 0 comments 0 FacebookTwitterPinterestEmail
African Focus Assessing the Levelized Cost of Energy for Solar PV Technology in Nigeria, Ghana and the Benin Republic by David Omata February 21, 2024 Published by David Omata In the quest for sustainable energy solutions, adopting renewable energy sources like solar photovoltaic (PV) technology has gained prominence globally. In West Africa, countries such as Nigeria, Ghana and the Benin Republic are increasingly looking towards solar PV as a viable option to diversify their energy mix and address pressing energy challenges. One critical metric in evaluating the economic viability of solar PV is the Levelized Cost of Energy (LCOE), which measures the lifetime cost of electricity generation per unit of energy produced. The Levelized Cost of Energy (LCOE) is a metric used to assess the lifetime cost of electricity generation from a particular energy source or technology, such as solar photovoltaic (PV) technology. It represents the average per-unit cost of electricity generated over a power plant or system’s lifetime, considering all relevant fees and financial considerations. LCOE = CAPEX +OPEXYIELD • CAPEX, or capital expenditure, is the initial investment, including the cost of components, labour and additional costs the solar system entails.• OPEX or operating expenditures include utilization, maintenance, taxes, etc.• Yield or energy production is the amount of energy the system harvests during its use. Analysts and investors can calculate the LCOE of solar PV technology by considering these factors and applying appropriate financial modelling techniques. The LCOE provides valuable insights into the economic viability and competitiveness of solar PV projects in various countries; it can also be used to compare energy generation costs with conventional energy sources such as fossil fuels and nuclear power. It helps policymakers, investors, and energy stakeholders make informed decisions regarding energy investments, project financing, and renewable energy deployment strategies. Various factors, including importation and production tax, solar irradiation levels, installation costs, financing mechanisms, policy frameworks, and local market conditions, influence the LCOE of solar PV technology in West African countries. Solar PV’s LCOE Assessment Nigeria, the largest economy in West Africa, possesses abundant solar resources, particularly in the northern regions. However, the high upfront costs of solar PV have hindered the widespread adoption it ought to. Despite these challenges, Nigeria’s LCOE for solar PV in Nigeria has been steadily declining due to technological advancements, economies of scale, and decreasing installation costs. The average LCOE in the Northern region is 0.395 $/kWh, whereas in the Southern part it is 0.453 $/kWh. This is unsurprising, given that the Northern part receives more solar irradiation than the South. With the most recent developments and supportive initiatives like the Bank of Industry’s six billion naira solar energy fund, Nigeria has the potential to significantly reduce its reliance on fossil fuels and harness its solar potential for sustainable energy development. Ghana, similarly, boasts favourable solar irradiation levels, especially in the northern regions. The Ghanaian government has implemented various initiatives to promote solar PV deployment, including net metering policies and feed-in tariffs. Currently, the LCOE for utility-scale solar PV technology in Ghana ranges from a minimum of about $0.04/kWh to a maximum of $0.15/kWh. It is yet to be entirely ascertained if the net metering and feed-in-tariffs have contributed to a declining trend in the LCOE of solar PV to make it more competitive than conventional energy sources. Also, challenges such as grid instability and limited access to financing options persist, necessitating further investment and policy support to unlock the full potential of solar energy in Ghana. Solar PV presents a compelling solution to energy access challenges in smaller economies like the Benin Republic, particularly in rural areas with limited grid connectivity. The country is growing interest in off-grid solar solutions, driven by declining costs of installations and innovative financing models such as pay-as-you-go systems. The LCOE for Benin Republic varies from 0.110 USD/kWh to 0.128 USD/kWh, with an average value of 0.120 USD/kWh. Conclusion and Recommendations Despite the progress in reducing the LCOE of solar PV across West Africa, several barriers remain to the general adoption of the technology. These include limited access to financing, inadequate infrastructure, regulatory uncertainties, and the intermittent nature of solar energy. Addressing these challenges will require coordinated efforts from governments, development partners, and the private sector to drive investment, enhance technical capacity, and create an enabling environment for solar PV deployment. The levelized energy cost for solar PV technology in Nigeria, Ghana and the Benin Republic reflects a promising trajectory towards affordable and sustainable electricity generation. Suppose these countries leverage their abundant solar resources and implement more supportive policies and investments; in that case, they can accelerate the transition towards a renewable energy future, improve energy access, and foster economic development. February 21, 2024 0 comments 0 FacebookTwitterPinterestEmail
Connecting The Dots Prospects of CNG as an Automotive Fuel In Nigeria by Doose Iortyom February 15, 2024 Published by Doose Iortyom Nigeria’s energy transition and the escalating transportation costs prompt a growing interest in using compressed Natural Gas for alternative fuelling. President Bola Ahmed Tinubu inaugurated the Presidential CNG Initiative (PCNGi) in August 2023 in response to these challenges. This initiative holds a visionary outlook, seeking to harness Nigeria’s abundant natural gas resources. In this episode, our guest is Michael Oluwagbemi, program manager/chief executive officer of the Presidential CNG Initiative. He joins the podcast to discuss the progress in adopting CNG as an alternative fuel and Nigeria’s preparedness for this transformative shift. February 15, 2024 0 comments 0 FacebookTwitterPinterestEmail
Connecting The Dots Progress Outlook: The 2024 Energy Year by Doose Iortyom February 1, 2024 Published by Doose Iortyom The Connecting the Dots Podcast Series is back! For the first episode of the year, our guest is Mr. Sadiq Wanka. He is the Special Adviser to the President of Nigeria on Power Infrastructure. This discussion will explore key sector events from the year 2023, and how these events are shaping Nigeria’s energy sector. Setting the pace for the new year, it is imperative to reflect on 2023, identify gaps, propose directives, and strategize for a successful 2024. February 1, 2024 0 comments 0 FacebookTwitterPinterestEmail
Power Punch The Role of International Corporations in Combating Climate Change in Africa by Doose Iortyom January 30, 2024 Published by Doose Iortyom The global energy market has long been characterized by the commanding influence of developed nations, wielding substantial control over market dynamics, global decisions, and financial injections. This dominance has perpetuated a landscape where the developed countries dictate the trajectory of the energy sector, leaving developing nations, particularly those in Africa, grappling with pressing energy security challenges. This power asymmetry emphasizes the urgent need for international collaboration to address the impending consequences of climate change on these developing economies heavily reliant on oil production. Africa in Focus It is no longer news that oil-rich nations in Africa must manage their economies; however, this growth driven by natural resources must be considered for their environmental and climate impact. These countries have traditionally been dependent on fossil fuels, and their share of greenhouse gas emissions has increased over the years, even though Africa currently emits less than 5% of the global emissions. Diversification of their economies to become sustainable energy sources has emerged as a requirement for long-term resilience as set by the Intergovernmental Panel on Climate Change. International cooperation can make this transition process easier through knowledge supplies, technological transfer and funding. While there have been several corporations and meetings to facilitate funding, there is still more to be done by the developed countries, especially in their pledge, as the annual pledged climate finance fund for developed countries has never been met since its establishment. During the Nigerian President’s address at the 19th Summit of Heads of State and Government of the Non-Aligned Movement in Kampala, Uganda, Ahmed Bola Tinubu emphasized the proactive stance of developing nations in addressing climate-related challenges with courage and ambition. President Tinubu spoke on the importance for developed countries to expeditiously fulfil their commitment to providing $1 trillion in climate finance. This financial support is essential to meet their pledged annual commitment of $100 billion for climate finance to assist developing countries in their sustainable development efforts. Source: OECD (2023), Climate Finance Provided and Mobilised by Developed Countries in 2013-2021. Also, cooperation among nations entails the transfer of knowledge and advancement in research and development. Learning from best practices and developing innovative solutions can help developing countries move faster in dealing with the challenges of energy security and those related to climate change. For example, clean energy technologies can be transferred through collaborative efforts; these include progress in renewable energy, energy storage and energy efficiency. Capacity-building programs can enable local systems to utilize these emerging technologies, developing a long-lasting energy grid. International coordination of policies is crucial for ensuring an enabling environment that supports sustainable development. This entails linking economic growth strategies with climate change mitigation objectives. Coordinated efforts can promote the adoption of green policies and regulations. International cooperation also has an effective positive effect beyond environmentally related concerns when it comes to developing countries, especially in Africa. Focusing on energy security and climate change in an integrated approach allows African countries to undergo transformations in many fields. The relationship between energy security, economic growth and climate change requires international cooperation that will offer practical solutions to meet the challenges of Africa, especially the oil producing countries. Through the utilization of shared resources, knowledge and finances, the world can promote sustainable development and build a resilient world where the fight against climate change is inseparable from the pursuit of economic prosperity for all. January 30, 2024 0 comments 0 FacebookTwitterPinterestEmail
Power Punch COP28: OFF TRACK TO MEET CLIMATE GOALS by Omiesam Ibanibo December 20, 2023 Published by Omiesam Ibanibo The recently concluded Conference of Parties (COP28) was significant for many reasons. One crucial reason is the global stocktake (GST). The global stocktake reveals the collective progress of member states and other stakeholders toward meeting the goals of the Paris Agreement. This stocktake informs countries and investors on the world’s climate action trajectory, identifying the gaps and collaborative areas; this is why COP28 was primarily significant. Who oversees the GST? The Conference of the Parties (the CMA) is the governing body overseeing the implementation of the Paris Agreement and comprises representatives of the countries’ signatories. The technical aspect of the work is carried out by two subsidiary bodies (SBs), the SB for Scientific and Technological Advice (SBSTA) and the SB for Implementation (SBI). The former is responsible for the data collation and technical components of the GST, while the latter assists in the final implementation phase. What does the GST reveal? The Paris Agreement designed the GST to start in 2023 and occur every 5 years. The stocktake process takes two years to conclude and comprises data gathering technical and political phases. The respective phases involve the information collection, technical assessment and consideration of outputs at COP sessions, where the implications of the findings are presented to the Parties. Upon the GST conclusion, a two-year process to 2025 would commence, during which countries must update their Nationally Determined Contributions. The stocktake is benchmarked against the below-listed Paris Agreement goals under Article 2: Drastically reduce greenhouse gas emissions (GHG) to keep global warming below 2°C and ideally 1.5°C Build resilience and reduce vulnerability to climate impacts Secure finance and support for low-carbon and climate-resilient development. The first GST synthesis report revealed 17 key findings and concluded that nations are off-track to meeting global emissions targets. Some of these findings are: 1. Global emissions are not in line with modelled global mitigation pathways consistent with the Paris Agreement’s temperature goal, and the window to raise ambition is rapidly narrowing. 2. More ambition in action and support is needed to implement domestic mitigation measures and set more ambitious targets in NDCs to realize existing and emerging opportunities across contexts to reduce global GHG emissions. 3. Economic diversification is a crucial strategy to address the impacts of response measures with various options that can applied in different contexts. 4. Capacity-building is foundational to achieving broad-ranging and sustained climate action and requires practical country-led and needs-based cooperation to ensure capacities are enhanced and retained over time at all levels. 5. Making financial flows – international and domestic, public and private – consistent with a pathway toward low greenhouse gas emissions and climate-resilient development entails creating opportunities to unlock trillions of dollars and shift investments to climate action across scales. As a result of these findings, the COP28 summit concluded with a signed deal to transition away from oil, gas and coal. What does Nigeria need? These findings are certainly not favourable to Nigeria and developing countries. The Nigerian Energy Transition Plan (ETP) posits gas as its transition fuel, with national leaders such as the director of Nigeria’s National Council on Climate Change (NCCC) expressing his displeasure with the signed deal. The advent of this closed deal to move away from oil, gas, and coal muddles the trajectory of Nigeria’s ETP. Consequently, Nigeria must re-evaluate investment strategies and actively diversify its revenue sources, particularly its foreign exchange earnings, as oil accounts for 95%. Thus, while action is proceeding, much more is needed now on all fronts. The nation’s leaders must advance the political will to implement carbon mitigation and abatement strategies and ease global warming. December 20, 2023 0 comments 0 FacebookTwitterPinterestEmail
