High-Level Forum on Financing Energy Transition in Africa at COP27

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novembre 14, 2022

As the COP27 Climate Summit continues in Sharm El Sheikh, Egypt, the Africa pavilion is busy hosting crucial events on topics that matter to Africa as well as on pressing issues that are impacting the Continent.

The High-Level Forum on Financing Energy Transition in Africa organised by the African Union Commission (AUC) and the International Energy Agency (IEA) on 9^th November 2022. It deliberated on critical energy issues facing Africa and ways to mobilise adequate finance to accelerate energy access and energy security on the Continent, as well expanding innovative mechanisms to increasing climate finance flows to Africa in the context of ‘energy transition’.

African Union Commissioner for Infrastructure and Energy H.E. Dr Amani Abou-Zeid said Africa expects concrete outcomes from COP27, especially with regard to translating commitments and accords reached in previous climate summits into action. The Commissioner laid out Africa’s ambitions to rapidly address energy access challenges by exploring diversified energy resources underlining the need to unleash adequate financing to speed up the process.

Commissioner Abou-Zeid further recalled that African Common Position on Energy Access and Just Transition identifies financing as a critical pillar to achieving Africa’s targets of developing its energy sector along a low-carbon and climate-resilient pathway. “Despite its enormous energy needs and opportunities, Africa is only accessing 3% of climate finance leaving an annual financing gap of US$ 90 billion for its energy access and transition goals. This status quo has to change, and all stakeholders should demonstrate the willingness to make the required policy adjustments that will unlock the flow of financing necessary for energy access and energy transition in Africa.”

While the long-term goal of Africa is to transition towards clean and sustainable energy systems, the current levels of energy access on the continent call for the utilisation of both renewable and non-renewable energy sources to meet its development goals.

Dr Amani Abou-Zeid reiterated that it is crucial to secure meaningful financial commitments and investments for Africa’s renewable energy and low-carbon programmes at scale to enhance energy access and support the social and equity dimensions of the just transition pathways. “There remains a huge financing gap from the US$120 billion required per year, especially in the development of new energy infrastructure. The commitments made by the global community must be fulfilled without any conditions or any further delay.”

Executive Director of the IEA Fatih Birol for his part highlighted that achieving Africa’s energy & climate goals requires doubling energy investment by 2030 and urgent action is needed to increase financial flows to Africa's energy sector. “Today, 600 million people, or 43% of the entire population of the African continent, still lack access to electricity and nearly 1 billion lack access to clean cooking. Achieving universal access calls for an investment of USD 25 billion per year”.

According to Executive Director Birol, Africa's circumstances must be understood, and its strides must be supported highlighting that Africa is the lowest GHG emitting region globally with its emissions will grow to only 3.4 per cent by 2050 if Africa utilises all its available resources.

The event has benefited from the presence and enriched views of the Ministers, Director Generals and high-level representatives of the African Union Members States and Member Countries of the IEA including Energy Ministers of Egypt, Kenya, and Uganda.

“While Africa is already committed to developing its renewable energy resources, the continent must exploit its vast and untapped natural resources without compromising the continental and global climate goals,” said H.E. Tarek El-Molla, Minister of Petroleum and Mineral Resources of the Arab Republic of Egypt.

The Ministers of Kenya and Uganda shared their countries' experiences in increasing the supply of electricity generated from renewable sources including hydro, geothermal, solar and wind projects to diversify their energy mix.

Climate finance needs for adaptation in Africa range from US$259 – 407 billion between 2020 and 2030, with the energy sector adaptation needs ranging from US$4.5 – 7 billion. The current progress in the implementation of adaptation is not sufficient for African countries to stay ahead of the projected climate change risks and address the adaptation gap, as expenditures on adaptation are already accounting for approximately 10% of African countries' GDP.

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More information:

https://au.int/en/AFRICAatCOP27; #AfricaCOP27

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