.L-r: DG, Global Centre for Law, Business and Economy, Dr. George Nwangwu, Hon. Henry Seriake Dickson, Senate Committee Chairman on Climate Change, and Dr. Salisu Dahiru, Director General, National Council on Climate Change, at the ongoing Africa Climate Forum 2023 held in Abuja on Tuesday
By Chidiebere Ugwu
Stakeholders in Africa’s renewable energy space on Tuesday commenced a two-day Africa Climate Forum 2023 to brainstorm on ways of closing financing gap in the renewable energy industry.
The maiden edition of Africa Climate Forum with the theme: ‘Powering the Future: Financing Energy Transition for Sustainable Progress’, observed that of the $3 trillion invested in renewable energy in the last decade, on 2% amounting $60 billion dollars came as investment in the sector in Africa within the period under review despite the fact that the continent posses 40% of the world’s renewable energy sources.
In his opening remarks, Dr. George Nwangwu, the Director General, Global Centre for Law, Business and Economy, the Convener of the forum, lamented that the lack of reliable power poses a major constraint to both private citizens and businesses, resulting in annual economic losses estimated at $26.2 billion, which is equivalent to 2% of GDP.
“The lack of reliable power poses a major
constraint to both private citizens and businesses, resulting in annual economic losses estimated at $26.2 billion, which is equivalent to 2% of GDP. This is why it is crucial for Africa, where most of the poor people in the world are resident, to take issues around energy seriously.
“In sub-Saharan Africa alone, approximately 600 million people, or 53 per cent of the population, live without access to electricity. This statistic does not account for the millions of people who have only limited or unreliable electricity Furthermore, about 890 million people in sub-Saharan Africa rely on traditional fuels for cooking, leading to devastating consequences predominantly for women.
Dr. Nwangwu said that it is projected that the continent would require about USD200 billion annually to meet its energy transition needs.
“Unlike developed countries that have made similar pledges towards carbon neutrality, Africa has limited resources to fund its energy transition plans. According to the African Development Bank, it is projected that the continent would require about USD200 billion annually to meet its energy transition needs. This is way beyond the reach of the continent, and it is therefore imperative that Africa receives the kind of finance that will enable it to meet its commitments to the rest of the world. Apart from concessionary financing, private capital is also crucial. Most of the private capital for large infrastructure projects is anchored on project finance models, Project finance itself is based on the management of risks and Africa is usually considered a very risky destination. The attempts at risk mitigation usually end up making large green infrastructure projects within Africa excessively expensive” he said.
Also, Hon. Henry Seriake Dickson, Senate Committee Chairman on Climate Change, who was the keynote speaker, called for synergy among all stakeholders to ensure that available resources are pulled together to attract the needed financing.
“Let once again reiterate my call, as the Senate Committee Chairman overseeing both NCC and the Ministry, and agencies, that as we move forward, that it is imperative for synergy, and for a close working relationship firstly among these lead agencies, the ministry and NCC working together. And synergy existing among all related Ministries, department and agencies (MDAs), and our committees working in the ministries, to ensure that reasonable progress is made. Financing the transition requires legislative interventions” he said.
Hon. Dickson assured of the readiness of the legislative arm of government in providing necessary assistance required to strengthen legal framework that can encourage investment in the renewable energy industry.
“The Committee and by extension the National Assembly is available to collaborate with all stakeholders to ensure that any legislative intervention that is needed or required to regulate the legal framework that will underpin financing. We will be willing to work with stakeholders to do. If it means strengthening existing legislations, if it means proposing and working on new legislations to bring it at par with what obtains globally. As you all know, we cannot make any headway unless we create an environment that will attract legal financing for this energy transition”.
The forum was attended by representatives of the Minister of State Environment, the Director General of National Council on Climate Change, diplomats, both from African countries and outside the continent, among other stakeholders.
