The World Bank’s latest announcement that it intends to stop financing oil and gas explorations after 2019 though broad in its intention does certainly come as not very good news for Kenya.
It comes just when the country is preparing to build an expensive crude oil industry and all the associated infrastructure with the hope of joining the coveted club of petroleum exporters.
Without doubt, this news will dampen current enthusiasm in Kenya’s budding oil industry.
Yet that is the future that the country must prepare for. Countries all over the world have committed to significantly cut their carbon emissions in line with the Paris Accord on global warming, which became effective in November 2016.
Going by the Accord, multilateral agencies such as the World Bank are set to put more money in clean energy than fossil fuels.
Similarly, the developed world is increasingly doling out incentives to replace fossil fuel vehicles with non-smoke producing electric cars. In short, we live in a world where investors must balance between today’s demand and the low season of tomorrow as they put money in petroleum sector.
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