Energy Transition Plans and other initiatives to unlock finance for African countries
Energy Transition Plans
At the same time, financial aid does not come without having set first a proper plan, adequate structure and measurable terms and objectives. Investors and development institutions nowadays require that countries asking for funds, have developed priorly solid frameworks to align technology, resources, and governance. In fact, African countries are taking proactive measures to engage with investors and development institutions to catalyze investment in their energy systems. With the help of SEForAll and its partners, Ghana and Nigeria are among a group of countries that have taken the lead and developed such tools, the Energy Transition Plans, which outline the technologies and support needed to achieve universal energy access and net-zero emissions by the mid-century.
”Ghana is a signatory to the Paris Agreement and is committed to its nationally determined target to address the adverse impact of climate change and increase access to energy for socio-economic development,” said Hon. Dr. Matthew Opuku Prempeh, Minister of Energy, Republic of Ghana.
The framework was featured at an event during the first week of COP27, where Sustainable Energy for All and Bloomberg Philanthropies announced that the two organizations will work with Ghana’s government on the execution of its transition framework. Meanwhile, in an Energy Day session, the Government of Nigeria highlighted how its existing Energy Transition Plan has already helped the country secure USD 1.5 billion from the World Bank.
Africa Just and Affordable Energy Transition Initiative
Addittionally to the Transition Plans, there are other initiatives recently started in Africa. Such is the case of the Just and Affordable Energy Transition Initiative, recently announced by the Egypt COP27 Presidency. Working with partners like SEforALL, this initiative has three main objectives to achieve by 2027: securing access to affordable energy for at least 300 million Africans, transitioning 300 million Africans to clean cooking, and increasing the share of renewable energy by 25 percent by 2027.
Just and Affordable Energy Transition Initiative - Target Goals at 2027
300 m
At least 300 million Africans with access to affordable energy
300 m
Africans using clean cooking,
25%
Share increase of renewable energy
Africa-Europe Cooperation
Building on the Africa Just and Affordable Energy Transition Initiative, SEforALL and the Africa-Europe Foundation have organized a Ministerial Roundtable that allows African ministers to engage the international community for collaboration and support on African countries’ energy goals.
The cooperation between African and European governments is also being enhanced. SEforALL and the Africa-Europe Foundation organized a Ministerial Roundtable that allowed African ministers to engage the international community for collaboration and support on African countries’ energy goals.
Leaders from Africa and Europe convene to discuss partnerships and financing opportunities for sustainable energy cooperation. The roundtable included ministers and senior representatives from Ghana, Senegal, Uganda, Malawi, Egypt, Nigeria, Kenya, Rwanda, Democratic Republic of the Congo, the European Commission, Spain, Belgium, Germany, Portugal, Netherlands and the UAE’s COP28 Presidency.
The roundtable built on discussions first held at the SEforALL Forum in Kigali, Rwanda, where African ministers took initial steps in defining their requirements for a just and equitable energy transition. Countries then agreed on seven transformative actions towards achieving Sustainable Development Goal 7 in Africa, outlining them in the Kigali Communique.
Africa Carbon Markets Initiative
Another major initiative launched at COP27 to encourage private finance for African energy development is the Africa Carbon Markets Initiative (ACMI). Its aim is to dramatically expand Africa’s participation in voluntary carbon markets, which involve international buyers – usually corporations – purchasing carbon credits to offset their own emissions, thereby financing clean energy projects.
“The current scale of financing available for Africa’s energy transition is nowhere close to what is required. Achieving the Africa Carbon Markets Initiative targets will provide much-needed financing that will be transformative for the continent,” said Damilola Ogunbiyi, CEO and Special Representative of the UN Secretary-General for Sustainable Energy for All and Co-Chair of UN-Energy.
ACMI announced a bold ambition to reach 300 million credits produced annually by 2030 across the continent. This level of production would unlock USD 6 billion in income and support 30 million jobs. By 2050, ACMI is targeting over 1.5 billion credits produced annually in Africa, leveraging over USD 120 billion and supporting over 110 million jobs.
ACMI’s principal goals by 2030
300 m
Carbon credits produced annually by 2030 in Africa
6 bn
$
Unlock 6 billion in revenue
30 m
Support 30 million jobs
SDG7 Pavilion
SEforALL and the Global Energy Alliance for People and Planet are hosting the Sustainable Development Goal 7 (SDG7) Pavilion in the Blue Zone at COP27 until 17 November. The SDG7 Pavilion is the main hub at COP for discussing and showcasing how to unite global efforts on energy, climate and development.
All open-door sessions at the Pavilion are also being streamed online here.
Localization is critical to reaching sustainable energy for all
Sustainable cooling: an essential part of a just and equitable energy transition
By Alan Miller, Senior Advisor to the Cooling for All SecretariatBen Hartley, Programme Manager, Cooling for All
30%
of the global population is exposed to life-threatening heat for at least 20 days a year
50%
of humanity may be exposed to life-threatening conditions arising from extreme heat and humidity by 2100
As several SEforALL reports have explained, cooling is essential for multiple SDGs: to protect against the risks of extreme heat, provide the cold chains needed for vaccines, to reduce food waste and improve food security, as a pathway for increasing the incomes of rural farmers, and to limit extreme heat in urban developments.
While some cooling needs can be met with nature-based or passive cooling solutions – such as planting trees or using heat reflective paint on buildings – for many, equitable access to sustainable cooling hinges on access to electricity to power cooling devices (active cooling). At the same time, continued reliance on inefficient devices could have drastic consequences for energy demand, energy access, and emissions.
Less than 10 percent of the almost 3 billion people living in the hottest parts of the world possess air conditioners. [3] The combination of rising temperatures and incomes means this figure is growing rapidly; by 2050 it has been projected around 2/3 of the world’s households could have an air conditioner – more than a billion new units.
Without subsidies or strict performance standards, low-income consumers will buy the lowest cost and typically least energy-efficient equipment, some still using potent greenhouse gases as refrigerants, locking in their use for a decade or more. The resultant growth in demand for power has been described as a "veritable carbon time bomb." [4] The need is increasing and increasingly urgent for environmentally sustainable, efficient, and affordable cooling solutions, sufficient to meet local needs, supported by technologies, policies, financing and services.
Much of the focus on extreme heat risks has to date focused on urban areas, where temperature extremes are exacerbated by "heat islands", the lack of vegetation, and the vulnerability of poor slum dwellers. SEforALL and the World Bank are working together to show that the risks in rural areas could be equally or more significant as the populations are typically poorer and more dependent on small farms highly vulnerable to extreme temperatures.
Rural populations are also more likely to lack access to a reliable, affordable source of electricity to power active cooling, and the absence of cooling also limits access to vaccines and good healthcare services. Declining opportunities in rural areas are also likely to accelerate migration to cities expanding urban slums and social problems.
The challenge is to identify strategies that simultaneously address the need for cooling and provide access to modern energy while also responding to climate change – all elements of a just, equitable energy transition. Fortunately, there is growing recognition that climate action must support development goals and the needs of the poorest and most vulnerable populations.
Both the February 2022 report of the IPCC on climate change impacts, adaptation and vulnerability, and the November 2021 Glasgow climate meetings, COP26, framed many of their conclusions around this objective. As IPCC vice-chair Ko Barrett explained, an effective response to climate change requires asking "Are we being fair and careful not to further disadvantage poor, vulnerable and under-represented populations?"
A statement on "Conditions for a Just Transition Internationally" prepared for COP26 and signed by 16 developed countries and the EU acknowledges their climate actions need to be fully inclusive and benefit "the most vulnerable through the more equitable distribution of resources, enhanced economic and political empowerment, improved health and wellbeing, resilience to shocks and disasters and access to skills development and employment opportunities."
These high-level declarations indicate new awareness of the importance and meaning of a just transition. There are also some recent initiatives toward putting this rhetoric into action. One is a significant commitment of climate funds to sustainable cooling projects.
Until recently, climate finance for access to cooling had been very limited outside of projects that promoted higher efficiency appliances and buildings. [5] Notably, such projects qualify as both mitigation and adaptation by reducing energy needs while also providing protection from extreme heat.
In October 2021, the Green Climate Fund approved USD 157 million for a new facility to help finance sustainable cooling projects implemented by the World Bank with an additional USD 722 million in leveraged co-finance. The facility will support nine countries to develop low-carbon and inclusive cooling solutions and focus on space cooling, refrigeration, and cold chains. In Kenya and Malawi, the facility will specifically address rural communities and ways of increasing their agricultural production.
The importance of sustainable cooling as a condition for the SDGs and climate goals appears belatedly to be receiving the attention it deserves. But with the clock ticking on the SDGs and a closing window for meeting the Paris climate goals, we have to move faster. This means rapidly scaling up investment in innovative cooling technologies and business models that make lifesaving cooling solutions affordable for all - and sustainable for the planet. In a warming world, we cannot deliver just and equitable energy transitions without them.
