Climate leadership: Leveraging on international collaborations
According to International Renewable Energy Agency report released in October, investments channelled to Africa in 2023 for renewable energy investments account for only 1.6 percent of the global share, seemingly a drop in the ocean.
The Nairobi Declaration on climate change and call to action adopted at the inaugural African Climate Summit (ACS) in September 2023 is one among key climate initiatives in Africa.
Kenya and other African nations agreed on a common climate position for the Conference of Parties (COP28) and beyond.
Further and in recognition of fossil fuels being the largest contributor to global carbon emissions, COP28 reached a consensus. The energy transition would be achieved through the tripling of renewable energy deployment and doubling of energy efficiency by 2030.
It remains a fact however that, the African energy transition is unique from the rest of the globe. The continent needs to sustain a united front in its contribution towards global climate action. In the face of energy poverty, the question remains on what we are transitioning “from” and “to what”.
Presently, a significant percentage of the continent’s population face the challenge of access to energy, affordability and security.
The Nairobi Declaration outlined as a goal the increase of renewable energy generation from 56 GW in 2022 to 300 GW in 2030 amongst other resolutions. The uniting thread for its realisation is access to climate financing.
According to International Renewable Energy Agency report released in October, investments channelled to Africa in 2023 for renewable energy investments account for only 1.6 percent of the global share, seemingly a drop in the ocean.
While Kenya boasts of an impressive 90 percent power generation from renewable energy, it is an exception to the general rule. Cost of electricity is still high. Much needed finance will boost grid and transmission infrastructure, battery storage thus lowering costs.
Available financing is costly. Like other countries already grappling with heavy debt, there are competing priorities for economic development.
Private capital can also only cover a small share of the financing needed for energy access exacerbating affordability constraints.
There has however been an emergence of non-traditional financing sources for renewable energy projects. While Development Finance Institutions and Multilateral Development Banks continue to play an integral role, it’s the increasing private financing and non-traditional investors from philanthropic organisations that point to benefits of international collaboration in an evolving climate financing landscape.
Not only have these helped mobilise blended finance but are also creating platforms for the sharing of technological know-how and experience, capacity building from much developed regulatory and policy frameworks.
As a product of ACS, the recent Accelerated Partnership for Renewables in Africa (APRA) investment forum in Nairobi is testament to the exponential benefits of international collaborations between African nations, private sector, international community, philanthropists and traditional financing institutions.
COP29 is taking place in Baku, Azerbaijan less than a week after Donald Trump’s victory in the US presidential election. This translates to a period of uncertainty for renewables. Strong and sustained climate leadership as demonstrated at the Africa Climate Summit will be crucial for bolstered continent’s climate action.
An Energy Lawyer and a Director in an Energy & Climate Policy Firm
