Energy
Europe Abandons Russia’s Energy -Can Africa Become Reliable Alternative Supplier?
With the never-ending Russia-Ukraine crisis, energy-stricken Europe now turns to Africa. Notwithstanding the distance, European Union members have set their eyes on African oil and gas producing countries that could be potential alternative suppliers. EU is heavily dependent on Russian energy. Russia is the largest supplier of gas to Europe. Russia, with the largest gas reserve in the world produces about 17% of global natural gas and supplies about 30-40% of the gas consumed in Europe through a network of pipelines to Europe.
During the first Russia-Africa summit, a number of African countries were soliciting Russia’s assistance in exploring their oil and gas reserves in Africa. Some agreements were signed with Russian companies such as Bashneft, Gazprom Neft, Lukoil, Rosneft et cetera. Long before that start of the February 24 “special military operations” in Ukraine, many African leaders illogically failed to understand that Russia has always claimed global leading position in oil and gas supply. Experts have said that Africa’s supply would affect the aggregate global supply and consequently its prices.
Moreover, the first Russia-Africa summit results are highly credible. Summit reports point to so many protocols and agreements with Africa. Russian companies, for their part, have a wealth of experience leading exploratory work and are interested in working on the African continent. With the geo-political changes and its logical implications, the investment in the energy sector must now come from Europe.
As a direct result of the “special military operation” launched since February 24, Russia has come under a raft of unprecedented stringent sanctions imposed by the United States and Canada, European Union, Japan, Australia, New Zealand and a host of other countries.
This has to be analysed and its geopolitical and business implications. The fact is that bilateral business relations and geopolitical impact are changing, some degree. The crisis has absolutely posed challenges, but at the same time opened possibilities and prospects for establishing new partnership cooperation between state institutions as well as between foreign countries and Africa.
In the latest research developments, EU members are now rapidly moving in the African direction, ultimately aiming at cutting the dependency due to sharp political and economic differences that have emerged connected to Ukraine. Generally, EU is closely coordinating with Algeria, Angola, Equatorial Guinea, Egypt, Nigeria and Mozambique.
There has been a long history of Soviet and Russian specialists participating in and supporting the systemic geological study of a number of countries in the African continent. Their work on natural resource bases has done a great deal to aid mineral extraction. These countries now have the opportunity to leverage modern means of geological research and exploration, and in doing so, strike new deals with Europe. Russia is energy self-sufficient, it is Europe rather needs imports and that offers revenue for African producers, experts have argued.
After comprehensive studies, Dr Elisée Byelongo Isheloke, Associate Professor at ISP Ba, Rector at Université Espoir du Congo (UEC) and Researcher and Consultant in South Africa, argues in an emailed message: “it will be hard for Russia to invest in oil and gas in in Africa in order to export it to Europe. The war in Ukraine is affecting Russian business in a negative way and European countries are many to opt for sanctions against Russia. In practical sense, the emphasis should be on strengthening cooperation in the energy sector between Africa and Europe.”
Europe and America need to stop curling conflict by their inflammatory declarations and both the western countries and Russia as well as Ukraine should refrain from any irresponsible statements. Human right abuses must be discontinued, and law must take its course especially where abuse on civilians has been publicly reported. In time of war, it is impossible to talk about meaningful investment, argues Professor Byelongo Isheloke.
Europe to leverage west and North Africa’s oil and gas resources to meet demand, said NJ Ayuk, Executive Chairman of the Johannesburg-based African Energy Chamber, assuring that “with direct involvement from a combination of private and public sector partners, Africa can produce a significant share of the capacity needed by Europe.”
He further stressed the need for regulatory reforms and production improvement in the energy producing African countries. In order to produce and supply effectively, there is the need to build more infrastructure to process its energy. Despite pitfalls and challenges, African leaders have to prioritize efforts to improve exploration, production, infrastructure development and the energy portfolio. Africa’s energy resources remain untapped, and there are huge reserves to meet local demand and to increase exports.
As the infographic by research company Statista shows, the continent’s largest natural gas exporters by far are Algeria and Nigeria, each with between 35,000 and 40,000 million cubic meters shipped abroad in 2020 (ranked 7th and 8th globally).
Last year, these countries were the only two African suppliers of gas to the European Union, accounting for 17 and 4 percent of the EU’s natural gas imports, respectively. The other major players in the region are Egypt, Libya, Equatorial Guinea, and Angola. While countries in sub-Saharan Africa have gas reserves, they have not had the interest from abroad and investment needed for the industry to open up access to Europe, according to Al Jazeera.
Three pipelines currently bring natural gas from Africa to Europe; the Transmed, which allows the export from Algeria to Italy (via Tunisia), the Medgaz, which connects Algeria to Spain under the sea, as well as the Greenstream, more modest in capacity, which connects Libya to Sicily. Due to diplomatic tensions with Morocco, Algeria closed the Maghreb-Europe (GME) pipeline, which passes through its neighbour’s territory, last October. From 2027, the NIGAL pipeline is expected to transport natural gas from Nigeria (which exports mainly by sea), but construction of this pipeline has not yet begun.
Our own research shows that Angola is Africa’s second biggest oil producer after Nigeria. Nigeria is the 10th largest gas reserve country in the world. For Nigeria to take gas to Europe, it would have to build a network of pipelines across the Trans-Saharan Region from Algeria and Morocco. This network of pipelines would have to run through the Northern-most part of Nigeria and connect with Niger. Angola has 1.7 billion tonnes of proven oil reserves and a resource portfolio of up to 3.5 billion tonnes, with liquid hydrocarbons predominating. Angola mainly develops fields under production-sharing agreements; Sonangol has a stake in the majority of them.
Media reports have said that Italy and a number of other EU members scramble to break away from Russian gas over the Ukraine war. In April, many of them with high exploring ambitions turn to Africa. Angola and Italy have already signed a declaration of intent to develop new natural gas ventures and to increase exports to Italy, said a statement from the Italian Foreign Ministry.
“We have reached another important agreement with Angola to increase gas supplies. Italy’s commitment to differentiate energy supply sources is confirmed,” Foreign Minister Luigi Di Maio said in the statement at the end of a two-and-half-hour long visit to Luanda.
Prime Minister Mario Draghi wants to add Angola and the Congo Republic to a portfolio of suppliers to substitute Russia, which provides about 45 percent of Italian gas.
“We do not want to depend on Russian gas any longer, because economic dependence must not become political subjection. Diversification is possible and can be implemented in a relatively short amount of time — quicker than we imagined just a month ago,” he said in an interview with the Corriere della Sera daily published this April.
The deal was described as “an important agreement that gives impetus to the partnership between Italy and Angola in the fields of renewables, biofuels, LNG and training in technology and environment.”
The Italy delegation headed to neighbouring Brazzaville, the Republic of Congo, to meet President Denis Sassou Nguesso. A similar declaration signed in the Republic of Congo. It provides for the acceleration and increase of gas production in Congo, primarily through the development of a Liquefied Natural Gas (LNG) project with start-up expected in 2023 and a capacity of over 3 million tons / year (over 4.5 billion cubic meters / year) once fully operational. LNG exports will allow to valorize the production of gas that exceeds Congo’s internal market needs, and exports to Europe.
Italy’s ENI has been the second largest oil operator in the Congo for nearly 50 years. It has finalized its latest deals to secure fresh gas supplies from the Congo and Angola, a move directly aims at reducing energy reliance on Russia. Italy and Angola signed a declaration of intent to develop “new” natural gas ventures and increase exports to Italy, according to a statement from the Italian Foreign Ministry.
The foray follows the signing of agreements with Algeria and Egypt in recent weeks. Algeria is currently Italy’s second-largest supplier, providing around 30 percent of its consumption. ENI said the deal with Algeria’s Sonatrach would boost deliveries of gas through the Transmed undersea pipeline by “up to nine billion cubic meters per year” by 2023-24. Transmed only had spare pipeline capacity of 7.8 billion cubic meters per year in 2021 — though it has said it is ready to expand. Italy has also been in talks with Azerbaijan over the expansion of the Trans-Adriatic Pipeline (TAP).
Our research confirms that with the European Union banning crude oil imports from Russia by increasing trade with other non-Russian economies and the Russian government promising to cut gas supplies if sanctions from western countries continue, potential supply disruptions still anticipated. Nigeria, with over 37 billion barrels of crude oil reserves, has the potential to improve its energy exports to Europe and fill in crude oil and natural gas shortages.
Majors including ExxonMobil, Shell and TotalEnergies have been top producers of oil and gas in Africa. Quite recently, TotalEnergies plans to invest $20 billion in Mozambique, and has similar agreements with neighbouring Rwanda.
Many more experts have scholarly written about the implications of Russia-Ukraine crisis, and what that means especially for Africa. For example, Research Fellow Danielle Resnick from the Brookings wrote that the crisis casts a long shadow across Africa. Despite the geographical distance, there are implications for pan-African solidarity and adherence to multilateralism increasingly uncertain.
She further stressed that a few countries are sensing long-term growth opportunities from the crisis. Specifically, Africa’s natural gas could reduce Europe’s dependence on Russian energy. The African countries mentioned earlier in this article with dreams of re-outlining serious business on the global landscape, Tanzania has revamped negotiations with energy companies in the hopes of attracting $30 billion in foreign investment to revive construction of offshore liquified natural gas projects in 2023.
From Nigeria to Niger to Algeria, the Trans-Saharan Gas Pipeline has specific importance as it can help to increase exports of natural gas to European markets. On February 16, the three countries signed an agreement to develop the pipeline, estimated to cost $13 billion. Europe is likely to be a key financer, bolstered by the EU’s controversial decision in early February to label investments in natural gas as green energy.
Now there are a few key questions: Can Africa really become the preferred gas and oil supplier to Europe? Will Russia invest in exploring and producing Africa’s oil and gas? Do African leaders understand that Russia wants to be the global leader and helping them explore oil and gas is illogical?
As European Union has already indicated during the last EU-AU summit, it looks at Africa from different perspectives, and more importantly pushing for their economic footprints on the continent. Fresh from that EU-AU summit, there are agreements on several investment projects.
Our research shows that EU is committing approx. €300 billion ($340 billion) for financing new investment initiatives — similar to China’s Belt and Road initiative — an investment program the bloc claims would create links, not dependencies. EU and SADC, for instance, have been worrying on facilitating and coordinating implementation of the regional agenda in Southern Africa.
Ms. Josefa Sacko, AUC Commissioner for Agriculture, Rural Development, Blue Economy and Sustainable Environment (ARBE), and Dr Ibrahim Mayaki, Chief Executive Officer of AUDA-NEPAD, have suggested that African countries must improve their oil and gas production and exploration capability to fill any gaps resulting from supply chain disruptions among the major global producers.
In a joint opinion article believe that African countries that produce fuel and gas such as Algeria, Angola, Cameroon, Republic of Congo, Egypt, Equatorial Guinea, Libya, Mozambique, Nigeria, Senegal, Sudan, and Tanzania should explore boosting production and filling the gas and oil gap within the continent and beyond to alleviate fuel price shocks.
“In addition, African governments should invest in or attract greater international investment in oil and gas exploration, particularly in countries where subterranean oil reserves are believed to exist but have yet to be explored,” both experts opined, further reminded that while the conflict severely impact on the economy, it opens the doors for some kind of strategic transformations in Africa.
As Research Fellow Danielle Resnick from the Brookings explicitly pointed out there would be tensions between the United States together Europe on one side and Russia, on the other, over Ukraine. Nevertheless, Africa leaders have to analyse this within the geopolitical context, take into account various scenarios for the near future.
The proximity of the European market gives especially Maghreb, the North African countries strategic significance to become potential gas suppliers. She cited Algeria, as the world’s sixth-largest gas exporter and the continent’s largest gas producer. It has already stated its intention to double exploration and production in the next five years, according to the International Energy Agency.
Algeria increased its export volumes to Europe from €40 billion in 2020 to €53 billion in 2021, and it is expected to export €46 billion or more in 2022, as demand in Europe is expected to continue to rise.
The time has arrived. African countries, can capitalize on current trends to attract much-needed investment in order to develop the infrastructure necessary to accelerate production for regional consumption and exportation while also reducing costs. According to Abdur-Rasheed Tunde Omidiya, President of the African Economic Commission, “the time to act on the Trans-African Gas plan is now.”
African Development Bank (AfDB) President Akinwumi Adesina said in an interview with Reuters that a huge opportunity are emerging for Africa due the Russia-Ukraine crisis. African Development Bank (AfDB) is aiming to raise $1bn to rapidly ramp up agricultural production in Africa and stave off a potential food crisis brought on by Russia’s invasion of Ukraine.
While Adesina decried the war’s impact on Ukraine and its people, he acknowledged that the geopolitical shifts has sparked new roles for Africa. “The biggest challenge Europe has is securing its energy supply. Europe needs to look, and it is looking, for alternative supplies of gas. Africa can be that place. Africa boasts a host of major oil and gas producers, including Algeria, Nigeria and Angola.
And new offshore gas discoveries – the viability of which had been questioned due to the global shift to renewables – could now become critical to Europe’s energy security as it weans itself off Russian supplies. France’s TotalEnergies, along with US firm Exxon Mobil and Portugal’s Galp are currently developing projects to exploit Mozambique’s estimated 100 trillion cubic feet of gas reserves and make it a major liquefied natural gas player.
Europe can look to Africa as preferred energy supplier. On the other hand, Africa is ready to welcome investors currently pulling out of Russia, according to Adesina, and added: “There are a lot of investors that are going to be diversifying out of Russia, of course … That’s a real opportunity, I think, for Africa at this point in time.”
Nearly our research results show positive signs and several interviews with experts especially inside Africa, we can conclude that Russia-Ukraine crisis has brought into its fold good opportunities. Understandably, Russia is energy self-sufficient, it does not need to import energy from Africa, it can only act as a fortified gatekeeper so that Africa’s energy production do not enter the global market. Popular opinion is that African producers can take advantage to attract investments required to build infrastructure that would enable them to expand exploration, production and exportation to meet the anticipated increase in demand in Europe.
Recent progress on the Gaza marine gas field’s development is positive news and highlights the potential for mutually beneficial agreements in the East Mediterranean. The preliminary approval by Israel of the Palestinian field’s development and exploitation is outcome of mediation efforts exerted by Egypt and Jordan that aimed at de-escalation of tensions and building bridges between Palestinians and Israelis. The benefits of the Palestinian field’s development are multifold and range from advancing energy security in Gaza and providing a substantial windfall for the Palestinian economy to improving Israel’s regional standing and attracting investment for the execution of infrastructure projects within the region.
Strained political relations between Israelis and Palestinians, sporadic Israeli support, concerns that revenues would be used to fund terrorism, and low gas prices have been prime reasons that impeded development of the 23-year-old Gaza marine gas field project. The war on Ukraine and the subsequent global energy crisis, as well as the Israel-Lebanon maritime delimitation agreement brought the Gaza marine gas field project to the forefront and accelerated mediation efforts that led to the preliminary approval by Israel for its development. In case a final agreement is reached, the field that contains 1 trillion cubic feet of gas is expected to generate revenues worth approximately $2.5 billion over its 15-year life span.
The Spirit of the Preliminary Deal
According to the preliminary deal, Egypt’s Natural Gas Holding Company (EGAS) will develop the field and related infrastructure in pursuance with the Memorandum of Understanding (MoU) signed in 2021 between the Egyptian state-owned company and the field’s partners namely, the Palestine Investment Fund (PIF) and Consolidated Constructors Company (CCC). The MoU foresees the transportation of Palestinian gas through a 40-mile pipeline to Egyptian LNG facilities for liquefaction and consumption by the Palestinians, Egypt, and third markets. Development of the field is expected to proceed in three phases: Phase 1 involves extraction of gas from Gaza marine-1, Phase 2 involves construction of the pipeline, and Phase 3 involves the development of Gaza marine-2, a second well closer to Egypt.
The Palestinian Authority will receive gas revenues and the final agreement is expected to be strictly limited in scope prioritizing the exploitation of Gazan gas and leaving outside the issue of recognition between Israel and Hamas. The latter’s tacit approval of the Gaza marine gas field’s development is allegedly outcome of extensive discussions among security officials that favored an Egyptian offer of an economic incentives’ package to Hamas in exchange for a long-term truce (hudna) with Israel. The conversion of the diesel-based Gaza Power Plant to operate on gas produced by the Gaza marine field holds a prime position in the economic incentives’ package. Improvement of living conditions in Gaza for its 2.3 million population is expected to politically benefit Hamas as currently Palestinians experience regular power shortages. In practical terms, Palestinians in Gaza receive an average of 10 hours of electricity per day according to data released by the UN Office for the Coordination of Humanitarian Affairs.
Overall, development of the Gaza marine gas field would provide Palestinians a domestic low-cost energy source, generate revenues for the Palestinian Authority and help Palestinians transition from diesel toward less carbon-intense fuels.
Palestinian Popular Perceptions
Public perceptions in Gaza have been affected by press reports on American mediation efforts for a normalization agreement between Saudi Arabia and Israel on the precondition that certain concessions are given to the Palestinians. Specifically, majority of the Palestinian public in Gaza and the West Bank maintains that the approval by the most right-wing Israeli government to date for the Gaza marine gas field’s development has been part and parcel of the discussions underway for the oncoming Saudi-Israeli normalization.
An opinion poll released on September 13, 2023, by the Palestinian Center for Policy and Survey Research (PCPSR) reflects this trend. 29 percent in Gaza believes that an agreement between Saudi Arabia and Israel to normalize relations could improve the chances for reaching Palestinian-Israeli peace. Related to this perception and taking into consideration that 2023 marks the 30th anniversary of the Oslo Accords, Gazans view more positively than the West Bankers the Oslo Agreement. As cited in the PCPSR poll, 40 percent of Gazans oppose the abandonment of the Oslo Accords by the Palestinian Authority.
When it comes to Palestinian popular perceptions on the development of the Gaza marine gas field, these are reportedly divided between optimists and pessimists. According to the first group, the field’s development would give a positive shock to the Gazan economy by means of job creation and full payment of salaries for public sector employees. As known, the Palestinian Authority currently withholds monthly salaries of public employees by almost 25 percent. Optimists also expect that gas prices will lower thus lifting much of the economic burden on households. At the political level, optimists support that the advancement of the Palestinian economy could pave the way for intra-Palestinian reconciliation between rival political leaders.
Pessimists, on the other hand, argue that economic benefits will be minimal as tax on Gazan gas is expected to be imposed simultaneously by Hamas, Israel, and Egypt thus minimizing prospects of low energy cost and improved living conditions. In addition, they advocate that the gap between Palestinian factions will widen rather than reconcile. To this end, pessimists cite the failure of Palestinian factions’ leadership to reconcile during the recent Egyptian Summit of El-Alamein.
Egypt’s Multileveled Mediation
Egypt has been well positioned to broker negotiations between Hamas and Israel, while Jordan used its political leverage over the Palestinian Authority and hosted a meeting to ensure that discussions continued unabated. In fact, Egypt and Jordan have been third parties in the Palestinian-Israeli meetings held in Aqaba and Sharm Al-Sheikh where the development of the Gaza marine gas field was at the heart of discussions, and a roadmap was put forward for de-escalation of tensions in Gaza.
The economic and regional benefits that Egypt will get from the Palestinian-Israeli agreement on the Gaza marine gas field’s development have been key to the success of Egyptian mediation. Despite the unchanged nature of Egypt’s cold peace with Israel, Egypt has appeared decisive to help Israelis and Palestinians pitch a vision to create shared solutions on energy challenges and opportunities with the Gaza marine gas field at the epicenter.
As per the terms of the preliminary agreement, Egyptian state-owned EGAS will take over development operations of the Gaza marine gas field and secure financing for the overall project. Financing constitutes a crucial element for the project’s development and requires political risk insurance as well as certain payment guarantees initially provided by EGAS and at a later stage by financial institutions.
Related development plans, that are likely incorporated in the economic incentives’ package offered to Hamas during discussions in exchange for long-term truce, include the construction of a new port to improve living conditions in Gaza. These plans foresee, among other options, either the construction of an Egyptian port in El-Arish so that cargoes are transported to Gaza through Kerem Shalom border crossing at the junction of Gaza, Israel and Egypt, or the construction of a Palestinian port on the Egyptian part of Gaza’s south border. Both options entail a leading Egyptian role that centers on investing in critical infrastructure to support the Gazan economy.
At the regional level, Egyptian successful mediation has enhanced Cairo’s leadership role with an emphasis on geoeconomics. In fact, Egypt seeks to pursue its strategic objectives in the region through attraction of economic inflows to enhance its national security and through creation of economic interdependencies balancing between competition and cooperation among geopolitical rivals. The Gaza marine gas field development falls under the category of projects that can cement regional economic interdependencies through a right balance between security considerations and economic cooperation.
The Art of Jordan’s Shuttle Diplomacy
It is upon this regional logic that Jordan used existing partnerships to prepare the ground for the resumption of Israeli-Palestinian talks with initial focus narrowly on the development of the energy-related project in Gaza and the Palestinian Authority’s empowerment. Jordan’s status as an important regional player and mediator between interested parties has been enhanced as a long-awaited win-win initiative has been finally got back to track.
Jordan stands to benefit from the development of the Gaza marine gas field that can be leveraged to create interdependencies. Jordanian state-owned National Electric Power Company (NEPCO) signed in 2015 a Letter of Intent (LoI) with then operator of the Gaza marine field for the supply of approximately 180 million cubic feet (mcf) of gas per day from the Gaza marine field to Jordan. Despite that the LoI is not technically doable at this point due to lack of proper pipeline network, Jordan’s political commitment is timeless.
Development of a regional energy and transportation infrastructure can pave the way for the promotion of quadripartite trade between Jordan, Egypt, Palestine, and Israel. For example, a “water-energy nexus” in a project where solar can be used to generate energy, which would in turn power desalination plants and generate shared drinking water can prove multiply beneficial. As the Jordanian public is averse to importing Israeli gas, converting it into water could scour the stigma not only facilitating trade but also delivering dividends of peace in the form of shared resources.
An additional project that can enhance interdependencies and complementarities is the proposed development of a monorail that would carry hundreds of containers per day from the Israeli port of Haifa to the Jordanian land port of Haditha thus improving trade and supply chain operations for Palestine, Israel, and Gulf countries. There are certain political roadblocks, however, that must be overcome such as the need to achieve equal access for Israelis and Palestinians, and the consent of Egypt due to the project’s likely impact on the Suez Canal’s traffic.
Jordan stands to benefit from development of gas discoveries offshore Gaza. Aqaba’s Liquefied Natural Gas (LNG) terminal has the potential to become a second regional energy hub. Out of various options, Palestinian gas can be directed to Egyptian liquefaction plants and onward to Jordan, where it could be piped via the Arab Gas Pipeline to Syria, and Lebanon. This scheme would help diversify the region’s energy suppliers and routes. It would also advance Jordan’s energy diversification efforts, which include the import of gas primarily from Egypt, the further development of domestic fields like the Risha gas field, construction of a dual oil and gas pipeline from Iraq, and acceleration of the shift toward renewables.
A Final Note
Unquestionably, energy cooperation and the related economic development along with security considerations were key components that led to the preliminary Palestinian-Israeli agreement on the development of the Gaza marine gas field, with Hamas at the backyard. Considering its promising economic, security, and diplomatic benefits for Egypt, Jordan, Palestine, and Israel, it has become more than evident that the Gaza marine gas development project must be implemented swiftly. Simply put, a “win-win” enterprise seems to be on the regional horizon!
Transitioning to renewable energy is the key to securing humanity’s survival, as “without renewables, there can be no future”, according to UN Secretary-General António Guterres, ahead of the International Day of Clean Air for Blue Skies, marked on 7 September.Renewable technologies like wind and solar power are, in most cases, cheaper than the fossil fuels that are driving climate change, but the world needs to prioritize the transformation of energy systems to renewable energy.
The Climate Ambition Summit, scheduled for 20 September at UN Headquarters in New York, will consider how to accelerate this transformation.
Here are five ways that acceleration could happen:
1. Shift energy subsidies from fossil fuels to renewable energy
Fossil fuel subsidies are one of the biggest financial barriers hampering the world’s shift to renewable energy.
The UN Secretary-General has consistently called for an end to all international public and private funding of fossil fuels, one of the major contributors to global warming, calling any new investments in them “delusional”.
“All actors must come together to accelerate a just and equitable transition from fossil fuels to renewables, as we stop oil and gas expansion and funding and licensing for new coal, oil, and gas,” he said.
The International Monetary Fund (IMF) revealed that $5.9 trillion was spent on subsidizing the fossil fuel industry in 2020 alone. This figure includes subsidies, tax breaks, and health and environmental damages that were not priced into the initial cost of fossil fuels.
That’s roughly $11 billion a day.
Shifting subsidies from fossil fuels to renewable energy leads to a reduction in their use and also contributes to sustainable economic growth, job creation, better public health, and more equality, particularly for the poorest and most vulnerable communities around the world.
2. Triple investments in renewables
An estimated $4 trillion a year needs to be invested in renewable energy until 2030 in order to reach net-zero emissions by 2050. Net zero is the term which describes achieving the balance between carbon emitted into the atmosphere and the carbon removed from it.
Investment in renewables will cost significantly less compared to subsidizing fossil fuels. The reduction of pollution and climate impact alone could save the world up to $4.2 trillion per year by 2030.
The funding is there, but commitment and accountability are needed, particularly from global financial systems. This includes multilateral development banks and other financial institutions, which must align their lending portfolios towards accelerating the renewable energy transition.
“Renewables are the only path to real energy security, stable power prices and sustainable employment opportunities,” the UN chief said.
He has further urged “all governments to prepare energy transition plans” and encouraged “CEOs of all oil and gas companies to be part of the solution”.
3. Make renewable energy technology a global public good
For renewable energy technology to be a global public good, meaning available to all and not just to the wealthy, efforts must aim to dismantle roadblocks to knowledge-sharing and the transfer of technology, including intellectual property rights barriers.
Essential technologies such as battery storage systems allow energy from renewables to be stored and released when people, communities, and businesses need power.
When paired with renewable generators, battery storage technologies can provide both reliable and cheaper electricity to isolated grids and off-grid communities in remote locations, for example, in India, Tanzania, and Vanuatu.
4. Improve global access to components and raw materials
A robust supply of renewable energy components and raw materials is a game changer. More widespread access to all the key components and materials is needed, from the minerals required for building wind turbines and electricity networks to elements for producing electric vehicles.
The UN’s International Seabed Authority is currently working with its Member States on how to exploit such abundant mineral resources in international waters as those crucial for manufacturing batteries while ensuring the effective protection of the marine environment from harmful effects that may arise from deep-seabed-related activities.
It will take significant international coordination to expand and diversify manufacturing capacity globally. Greater investments are needed, including in people’s skills training, research and innovation, and incentives to build supply chains through sustainable practices that protect ecosystems.
5. Level the playing field for renewable energy technologies
While global cooperation and coordination is critical, domestic policy frameworks must urgently be reformed to streamline and fast-track renewable energy projects and catalyse private sector investments.
Technology, capacity, and funds for renewable energy transition exist, but policies and processes must be introduced to reduce market risks to both enable and incentivise investment, while simultaneously preventing bottlenecks and red tape.
Nationally determined contributions, or countries’ individual action plans to cut emissions and adapt to climate impacts, must set renewable energy targets that align with the goal of limiting the increase in global temperatures to 1.5°C (2.7°F) above pre-industrial levels.
To achieve this, it is estimated that the share of renewables in global electricity generation must grow from 29 per cent today to 60 per cent by 2030.
As a businesswoman who has dedicated my life to elevating opportunities for African women, I’ve seen how the historical exclusion of women – and especially women from Africa and the Global South – from international climate talks has derailed climate action.
Only by rectifying this systematic marginalisation of women can Africa fulfil its true potential as a leading global renewables powerhouse.
That is why I am celebrating attempts at the Africa Climate Summit, the first of its kind being held in my home country Kenya, to push back against entrenched gender inequalities.
If we fail to marry the energy transition with the goal of empowering women, the continent will not succeed in combating climate change.
In a ground-breaking move, the African Union Commission, which represents 55 African countries, signed a joint statement with the Government of Kenya and the UAE presidency of the upcoming COP28 UN talks in Dubai, endorsing the goal of tripling renewable energy capacity and doubling energy efficiency to stay within the 1.5C safe limit for global warming. The statement also calls for a “comprehensive systems change”, including the need to transform “food and health systems” while protecting nature and biodiversity.
Neither African governments nor previous COP presidencies have placed such wildly ambitious goals on the political agenda before. And although these goals have not yet taken the shape of a binding agreement, they are being supported with real action.
At the Africa Climate Summit, COP28 president Dr Sultan Al Jabr announced that the COP28 presidency itself will invest $4.5 billion to mobilise up to tens of billions more in African clean energy projects. According to Al Jabr, the point of the pledge is “to clearly demonstrate the commercial case for clean investment across this continent” and to create “a scalable model that can be replicated to help put Africa on a superhighway to low carbon growth”.
This is a huge milestone—with one major caveat: women must become linchpins in the continent’s new, evolving clean energy landscape.
That means overturning years of women being side-lined in climate talks and overlooked in governmental and institutional planning. Just 9% of energy project aid focuses on gender equality, and the UN’s clean energy goal (SDG7) omits gender entirely.
Currently women bear the worst impacts of climate change and energy poverty, accounting for 80% of food production and over 60% of agricultural employment in sub-Saharan Africa. Yet over three-quarters of total public climate-development finance in Africa this decade failed to consider gender at all.
And across Africa, women are marginalised from politics, education and employment. Previous UN climate talks have in effect discussed an ‘energy transition’ by and for men.
This gender-blindness is literally killing the planet. Companies with more women on their boards are more likely to lead them into policies aligned with the goal of capping climate change at 1.5C; and women around the world overall do more than men to change their behaviour to reduce emissions: so excluding them is an existential risk.
That’s why I’m celebrating how this week African nations are uniting for the first time not just to combat Africa’s climate threat, but also to highlight the gender inequalities preventing us from implementing real solutions.
As the First Lady of Kenya, Rachel Ruto, pointed out at the summit, only by equipping women with knowledge and skills can they be empowered to become champions of clean energy and sustainability. She convened a meeting of senior women leaders at the summit to focus on the critical importance of women to the success of the energy transition.
The lessons of the Africa Climate Summit must be taken all the way to the United Nations climate talks later this year. The goal of tripling renewable energy capacity, as the African Union Commission has now endorsed, is only one half of the equation. The other half is removing the barriers preventing women from racing toward this target. This must be enshrined in any global agreement – without it, not only Africa’s but the world’s clean energy transition will fail.
There are signs of progress. COP28 has already appointed women to senior roles representing the presidency, with Shamma Al Mazrui, UAE Minister of Community Development, appointed as Youth Climate Champion and Razan Al Mubarak, President of the International Union for Conservation of Nature appointed as the UN Climate Change High-Level Champion.
And just under half of COP28’s advisory committee are women, a big step-up compared to previous COPs which failed to include women at a senior role. The presidency has also called on all delegations to explicitly increase the role of women and young people in negotiations to make this “the most inclusive” COP.
Yet though these are big milestones, they are still baby steps. It’s time for world leaders to recognise that without empowering the world’s women on the frontlines of the battle against climate change, no global agreements will produce the change we need.
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