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 Analysing Wind Energy Projects in New York and Emerging Markets in Africa by David Omata May 17, 2024 Published by David Omata Recent cancellations of major offshore wind projects in New York have dealt a significant blow to the industry. The failure of major offshore wind projects in New York reflects a combination of technical, commercial, and regulatory challenges that have plagued similar ventures, especially in Africa. One significant factor contributing to the cancellation of these projects was the intricate technical and commercial complexities they encountered. Changes in project plans and material modifications introduced uncertainties during negotiations, making it challenging for involved parties to reach final agreements. This mirrors experiences seen in other regions where ambitious renewable energy projects have faltered due to unforeseen technical hurdles and shifting market dynamics. Similarly, the Lake Turkana Wind Power Project in Kenya, one of the largest wind farms in Africa, faced numerous challenges during its development, including delays due to financing issues, logistical challenges in transporting turbines to the remote site, and disputes over land rights with local communities. These challenges resulted in significant delays and cost overruns, highlighting the difficulties involved in large-scale renewable energy projects in Africa. Another critical issue that led to the downfall of the New York projects was the reliance on a complicated supply chain, particularly the unavailability of critical components such as turbines. The cancellation was linked to supply chain investments by General Electric (GE), emphasizing the vulnerability of wind power projects to disruptions in the supply chain. Although numerous initiatives have been aimed at developing local capacities in Africa for designing and constructing wind turbines, these efforts have not yet fully matured, presenting challenges in reducing the continent’s reliance on imported turbines, affecting the entire supply chain. Case studies such as the “Wind Atlas for South Africa (WASA)” project, which aimed to assess wind energy potential and build local expertise in wind resource assessment, demonstrate ongoing efforts to develop local African capacities. Despite such initiatives, many countries still face challenges in achieving self-sufficiency in wind turbine manufacturing. For example, the lack of advanced technical skills and infrastructure has hindered the growth of the local wind energy industry in countries like Nigeria and Kenya. Cost considerations also played a significant role in the failure of the New York projects. The decision not to proceed was influenced by the increased costs associated with using smaller turbines, which would have required more individual turbine locations and higher installation expenses. This economic challenge has been a recurring theme in renewable energy projects worldwide, where developers often grapple with balancing the need for technological advancements with cost-effectiveness. Egypt’s Renewable Energy Feed-in Tariff (FiT) faced challenges related to regulatory uncertainties, grid integration issues, and delays in project approvals, leading to a slower-than-expected uptake of wind power projects. Also, regulatory constraints contributed to the demise of the New York projects. Policies limiting rate increases for consumers constrained negotiations, making it difficult for developers to meet financial targets and secure viable agreements. Similar regulatory hurdles have hindered renewable energy projects in regions like South Africa, where conflicting policies or stringent regulations have impeded progress towards renewable energy targets. Despite the undeniable success of the REIPPPP (Renewable Energy Independent Power Producer Procurement Program), a commonly discussed drawback has been the significant transaction costs borne by participating bidders. These costs encompass all expenses incurred from bid development to the commercial operation date. While competitive tenders for renewable energy projects are generally more intricate and thus more costly for independent power producers (IPPs) than feed-in tariff programs, the REIPPPP placed exceptionally stringent demands on bidders. The cancellation of offshore wind projects in New York has further shown the challenges of renewable energy development and the importance of addressing various challenges holistically. If we learn from past experiences and collaborate effectively, regions can overcome barriers to renewable energy deployment and accelerate the transition towards a sustainable energy future. Omata David OmakojiTechnical Associate – Nextier PowerDomata@thenextier.com May 17, 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 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
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
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
Power Punch COP 28 FOCUS: Beyond the Pledges by Doose Iortyom December 19, 2023 Published by Doose Iortyom The United Nations Environmental Programme’s (UNEP) latest emissions gap report reveals an alarming surge in global average temperatures. In September 2023, temperatures were 1.8°C above pre-industrial levels. In light of these findings, the 28th edition of the Climate Change Conference of Parties (COP) assumes unparalleled significance. These statistics also indicate an imperative for nations to not only make commitments but, more critically, to implement them swiftly. Annually convened, the Climate Change Conference of Parties (COP) re-evaluates climate commitments, ensuring nations progress towards net-zero targets. A core point of COP is the commitments and initiatives that enable progress on a just, equitable and sustainable energy transition. This approach is crucial to drive down the impacts of climate change. Reasonably, Nigeria’s participation in COP28, led by President Bola Ahmed Tinubu, underscores commitments to end gas flaring, reduce carbon footprint and commit not just to an energy mix but an eco-friendly future driven by sustainable energy sources to turn Nigeria into an investment-friendly environment for the carbon market investments. Despite these commitments, the pivotal task is to turn these pledges into productive actions. Hence, a focal point of COP28 is to examine implementation through the inaugural Global Stocktake. The global Stocktake was designed under the Paris Agreement to assess our global response to the climate crisis and chart a better way forward. Scheduled every five years, the Stocktake is intended to inform the next round of nationally determined contributions (NDCs) to be put forward by 2025. The objective of the Stocktake is to aid policymakers and stakeholders in strengthening their climate policies and commitments in their next round of NDCs, paving the way for expedited action. The success of COP28 depends largely on the effective mechanisms that monitor progress and ensure adherence. For Nigeria, a significant gap remains in advancing the green transition. The Nigeria Energy Transition Plan posits that Nigeria will spend $410 billion above business-as-usual spending, which translates to about $10 billion annually, to support its 2060 Net-Zero goal. Clearly, finance is a critical part of an energy transition; this informed the historic launch and operationalization of the loss and damage fund to cater to vulnerable African Communities like the Niger-delta regions. Nigeria must position itself to access these funds. The Nigerian government must employ different instruments such as climate bonds, public-private partnerships, and mechanisms that incentivize sustainable investments. Adaptation and resilience strategies are also crucial components that must be explored to support the green transition agenda. In addition, actualizing these commitments demands investments in sustainable technologies. COP28 emphasizes the significant role of information and communication technologies (ICTs) in early warning systems, monitoring and adapting to climate change, and mitigation strategies, including increasing energy efficiency, creating green networks, and creating circular economies. Against this backdrop, Nigeria must explore incentives and partnerships that promote developing and deploying green technologies on a global scale. Lastly, turning these commitments into real and meaningful action will require the participation of every citizen. This is because our lifestyles have a profound impact on our planet. Efforts should be intensified towards facilitating knowledge exchange and support systems to empower vulnerable regions in building resilience. Also, emphasizing the importance of environmental education urges nations to integrate sustainability into curricula and engage communities in climate-related initiatives. In conclusion, COP28 marks a crucial juncture where nations must move beyond pledges into tangible, transformative actions. Transparency, stakeholder engagement, technological innovation, finance, adaptation, and public awareness constitute the bedrock for successful implementation. The conference’s impact will be measured by the transformative steps taken to secure a sustainable future for generations ahead. December 19, 2023 0 comments 0 FacebookTwitterPinterestEmail
Power Punch Africa’s Expectations from COP28 by David Omata November 28, 2023 Published by David Omata As the global community gears up for the 28th Conference of the Parties (COP28) scheduled from November 30th to December 12th, African nations face unique challenges and opportunities in pursuing sustainable development. COP28 represents a crucial juncture for the continent, with high expectations for meaningful collaboration, robust commitments, and equitable solutions to address climate change. COP28 presents an unprecedented opportunity for the global community to unite and address the world’s urgent climate challenges. The expectations below reflect the continent’s aspirations for a sustainable, equitable, and resilient future. As the world converges to deliberate on climate action, the outcomes of COP28 must reflect a collective commitment to leaving no one behind and forging a path towards a more sustainable and inclusive world. Africa’s expectations are not just regional; they are integral to the success of global climate efforts, and COP28 provides a platform to turn these expectations into tangible actions. This edition of Nextier’s Power Punch explores the primary expectations of Africa from COP28 and the transformative outcomes it aspires to achieve. 1. African Leadership and Representation African nations expect COP28 to recognize and amplify their voices in global climate negotiations. It is crucial to ensure that decisions made at the conference reflect the diverse needs and priorities of the continent. These considerations involve enhancing African representation in key decision-making bodies and fostering partnerships that empower African leaders to lead in shaping climate policies. 2. Climate Finance A critical aspect of COP28 for Africa is securing adequate climate finance to support mitigation and adaptation efforts. The Green Climate Fund and other financial mechanisms should prioritize funding for projects that address the specific vulnerabilities of African nations. It is essential to ensure that funds are easily accessible and that the allocation process is transparent, fair, and inclusive. 3. Technology Transfer and Capacity Building For Africa to transition to a low-carbon economy, there must be a concerted effort to facilitate the transition to clean and sustainable technologies. COP28 should emphasize technology partnerships that enable African nations to leapfrog traditional development pathways. Additionally, capacity-building initiatives should be strengthened to empower local communities in implementing and managing sustainable technologies. 4. Adaptation and Resilience Building Africa is particularly vulnerable to the impacts of climate change, from extreme weather events to shifting agricultural patterns. COP28 must prioritize adaptation measures that empower African nations to build resilience against these challenges. This expectation includes the development of climate-resilient infrastructure, early warning systems, and sustainable agricultural practices tailored to the continent’s unique needs. 5. Just Transition and Social Equity African economies heavily rely on sectors that may be significantly impacted by climate policies, such as agriculture and extractive industries. COP28 must prioritize a just transition that ensures affected communities’ social and economic well-being. This expectation involves creating new job opportunities, providing skills training, and safeguarding the rights of vulnerable populations. 6. Biodiversity Conservation Africa is home to a rich and diverse array of ecosystems and wildlife, many of which are threatened by climate change. COP28 should emphasize the importance of biodiversity conservation and integrating nature-based solutions into climate strategies. Integrating nature-based solutions includes sustainable land management, reforestation projects, and the protection of critical habitats. Conclusion Africa’s expectations from COP28 are rooted in pursuing climate justice, resilience, and sustainable development. The conference’s success would be measured by its ability to prioritize adaptation, secure adequate climate finance, foster technology transfer, and ensure a just transition for all. As the world convenes, it is imperative to recognize that addressing Africa’s climate concerns is pivotal for the continent’s well-being and the collective success of global climate initiatives. COP28 marks a pivotal moment for transformative action, and the world must rise to meet Africa’s expectations with urgency and commitment. November 28, 2023 0 comments 0 FacebookTwitterPinterestEmail
African Focus Harnessing Africa’s Mineral Wealth: Paving the Way for Energy Transition and Economic Prosperity by David Omata October 19, 2023 Published by David Omata Africa, often called the “cradle of humankind,” has natural resources. Among these resources are the key minerals essential for driving the global shift towards energy transition and sustainable energy. Minerals such as lithium, cobalt, rare earth elements, and many more are crucial in producing batteries, solar panels, and other components vital to renewable energy infrastructure. This vast resource potential presents African countries with a unique opportunity to charge towards energy transition. While significantly strengthening their economies through industrialization by setting up companies to process these minerals into final products or to export them. Lithium: Powering the Battery Revolution Lithium-ion batteries are the backbone of modern energy storage, powering everything from electric vehicles to grid-scale energy solutions. Africa’s lithium reserves, particularly in countries like Zimbabwe, Congo, and Mali, have the potential to become a cornerstone of the global battery industry. Investing in lithium extraction and processing capabilities, these nations can become key players in the energy transition while creating jobs and attracting investment. Zimbabwe has the most lithium deposits in Africa and has attracted investors in battery materials from Canada, the United Kingdom, and Australia in recent years, while China remains the dominating player. Prospect Lithium Zimbabwe, a subsidiary of Zhejiang Huayou Cobalt, launched the facility, which can potentially convert 4.5 million metric tonnes of hard rock lithium into concentrate for export each year. Cobalt: A Crucial Element for Battery Technology Cobalt is another indispensable mineral for battery production, and Africa holds over half of the world’s known reserves. Countries like the Democratic Republic of Congo and Zambia are rich in this resource. However, sustainable and responsible mining practices are paramount to ensure social and environmental well-being. The Democratic Republic of the Congo possesses the world’s largest cobalt deposits, estimated to be four million metric tonnes in 2022. With total global cobalt reserves of 8.3 million metric tonnes, the DR Congo’s cobalt deposits account for approximately half of the world’s cobalt reserves.African nations can lead by example, implementing ethical mining standards and fostering fair trade partnerships with international markets. Rare Earth Elements: Catalysts of Renewable Energy Rare earth elements (REEs) are essential for producing magnets in wind turbines and electric vehicles. Africa’s REE potential, especially in countries like South Africa and Burundi, positions the continent as a key supplier in the global transition to clean energy. South Africa possesses 15 rare earth elements and 86,900 tonnes of rare earth oxides, including significant concentrations of neodymium and praseodymium. Strategic investments in REE mining, processing, and refining technologies will be required to explore these REEs fully. Silicon and Quartz: Cornerstones of Solar Energy Silicon and quartz are fundamental materials used in the production of solar panels. With abundant reserves in Egypt, South Africa, and Morocco, Africa is poised to become a significant player in the solar energy market. African nations can meet domestic energy needs and tap into the lucrative global solar industry by fostering local manufacturing capabilities and developing a skilled workforce. This action would reduce Africa’s reliance on solar battery imports and position the region as a key exporter. Copper: The Conduit for Electricity Copper, a vital component in electrical wiring and transmission systems, is commonly found in Zambia, known as the “Copperbelt,” one of the world’s largest copper deposits. By leveraging its copper resources, Zambia, along with other copper-rich nations like the Democratic Republic of Congo and Namibia, will play a pivotal role in modernizing Africa’s electrical infrastructure, facilitating the integration of renewable energy sources into the grid. Policy RecommendationsThis article has outlined several key African mineral resources that can drive the energy transition and boost the continent’s GDP. African nations may successfully use their mineral resources to advance the energy transition, boost their economies, and guarantee equitable and sustainable development for their people by concentrating on these five key proposals. Comprehensive Resource Governance Framework Establish a robust and transparent regulatory framework for extracting, processing, and exporting critical minerals, ensuring environmental protection, social equity, and adherence to international best practices. These actions would build the capacities of each country with these minerals to establish companies that would process the minerals into finished products rather than just exporting them to other countries for processing. Technological Innovation and Capacity Building Promote research and development initiatives in collaboration with industry and academic partners to advance mining technologies, mineral processing, and energy storage solutions while investing in skills development programs to create a skilled workforce. These actions build the capacities of each country with these minerals to establish companies that would process the minerals into finished products rather than just exporting them to other countries for processing. Responsible and Ethical Supply Chains Implement stringent supply chain standards and ethical sourcing practices for critical minerals, fostering fair trade partnerships and ensuring that mineral extraction benefits local communities and adheres to environmental sustainability standards. Inclusive Economic Diversification Encourage downstream industries and value-added processes for minerals, such as local manufacturing of solar panels and battery components, to create job opportunities, stimulate economic growth, and reduce dependency on raw material exports. Sustainable Environmental and Social Practices Enforce environmental safeguards, including rigorous impact assessments and rehabilitation plans, to minimize the negative environmental impacts of mining activities while prioritizing community engagement, revenue-sharing mechanisms, and social development initiatives to ensure that local populations benefit from mineral resource exploitation. ConclusionAfrica’s vast mineral wealth is key to unlocking a sustainable future for the continent and the world. By strategically developing and leveraging these resources, African nations can spearhead the global transition towards renewable energy. Also, the continent can significantly boost its economy by exporting these minerals, thereby diversifying its revenue streams and improving the livelihoods of its citizens. However, this wealth must be managed responsibly and sustainably, ensuring the benefits are equally distributed and environmental sustainability remains a priority. With the right strategies and partnerships, Africa has the potential to be a beacon of renewable energy and sustainable and inclusive development globally. October 19, 2023 0 comments 0 FacebookTwitterPinterestEmail
Connecting The Dots Grid Decentralization: A Pathway to Maximize RE Potential in Nigeria. by admin September 26, 2023 Published by admin In this episode of Connecting the Dots, our guest is Dr. Damola Omole, Director of Utility Innovation, GEAPP. He joins Emeka Okpukpara to discuss grid decentralization as a pathway to unlock renewable energy potential in Nigeria. This episode explains how a decentralized grid can promote efficiency in the Nigerian power sector and how this approach can pave the way to explore alternative energy sources. This conversation also highlights how GEAPP is using battery technology to address the power supply challenges across Africa and Nigeria. https://open.spotify.com/episode/6HspKtFWqlMqF4Cn04yUmh?si=5316ff4b72eb4028 September 26, 2023 0 comments 0 FacebookTwitterPinterestEmail
