AFTER COP27, WHAT NEXT FOR SUSTAINABLE ENERGY IN AFRICA?
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BY MARK AKROFI
DECEMBER 12, 2022

COP27 built momentum on climate action, especially the agreement to establish a loss and damage fund. But we are behind in climate finance for Africa, which not only must reduce emissions but has the raw materials needed to support the clean energy transition, writes Mark Akrofi.

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As the UN Climate Change Conference (COP) returned to Africa this year, the stakes were higher than ever for the continent, which has been suffering disproportionately in a time of unprecedented global crises including COVID-19, droughts, wildfires, floods, and other climate-induced disasters, as well as Russia’s invasion of Ukraine.

Africa tends to bear the brunt of these crises and the harsh realities of climate change, even though it contributes little to their causes. The continent is faced with a trilemma of needs: to strengthen its capacity to adapt to climate change, to expand energy access for the more than 600 million people still without electricity, and to accelerate economic growth while pursuing carbon neutrality. To this end, concerted action on climate change adaptation and clean energy investments in Africa has often been a focus at previous COPs. The issue of climate finance dominated, with developed countries called on to fulfill their 2015 pledges to provide $100 billion in climate finance per year to developing countries by 2020.

COP27 was about building momentum and accelerating action towards delivering the commitments made at COP26 last year in Glasgow. Beyond fixing broken promises on climate finance, African leaders have emphasized the need for developed countries to mobilize more climate finance for developing nations. They have called for developed nations to pay for climate loss and damage as well as swapping debts for climate interventions. Even though Africa contributes less than 4% of global carbon emissions, it has a critical role to play if the world is to achieve carbon neutrality by 2030. However, a carbon-neutral approach to economic growth and social development remains a daunting task for the continent, especially since this involves foregoing the polluting path that advanced countries have already taken. Green transitions will provide significant opportunities for the continent. However, particular attention needs to be paid to two key issues.

First, dealing with the fossil fuel dilemma. It is well known that the level of development attained by advanced countries was heavily propelled by fossil fuels in the last century and this is largely to blame for the current climate crisis. Africa has huge deposits of crude oil and natural gas, but these resources have been more of a burden than a benefit. Their exploitation by large corporations from developed nations has resulted in many conflicts and environmental disasters on the continent. Today, as many advanced nations oppose the notion of Africa leveraging its oil resources for growth, African countries still depend heavily on imported refined petroleum at high costs. Consequently there are increasing calls for boosting domestic oil refineries on the continent. It is thus of no surprise that COP27 witnessed a 25% rise in participation by fossil fuel lobbyists, including a considerable number from African countries. Indeed, while the continuous exploration of oil is undesirable, if African countries refrain from the fossil fuel path to development while allowing the exploitation of these resources by large corporations from the global North, this will only accelerate domestic fossil fuel investment. Advanced countries must not only fulfill their funding commitments to help Africa leapfrog to renewable energy, but also guard against the exploitation of fossil fuel resources by large corporations on the continent.

Second, a potential white elephant must be avoided. As COP27 provided momentum in the transition from fossil fuels to cleaner forms of energy, Africa needs to be cautious of the demand for critical minerals for renewable energy technologies. The continent possesses some 42 out of 66 critical minerals that are needed for renewable energy and digital technologies. The extraction of these minerals is energy-intensive and poses significant environmental threats. As demand increases, Africa must learn from its experience with the oil curse and prevent a similar problem. As a first step, comprehensive stocktaking of these critical minerals is needed. High-quality data on their quantities and distribution can help governments to develop effective strategies for sustainable exploration and avoid illegal extraction. A localized approach whereby the minerals are processed and used for domestic production of renewable energy and digital technologies on the continent would be ideal. This approach could extend the value chain beyond extraction and export to create more jobs through local mineral processing and manufacturing industries.

In these areas and beyond, it is clear that prioritizing investments in renewable energy remains critical to sustainable growth in Africa. Access to a reliable and affordable energy supply is essential for every aspect of the economy, from agriculture to healthcare, education, and employment. To facilitate renewable energy growth, developed countries must not only fulfill their climate finance pledges but also facilitate technology and knowledge transfer to developing countries. This must be accompanied by stringent transparency and accountability mechanisms to ensure that they meet their intended purpose. In addition, African nations need to bolster their domestic financial mobilization for investments in renewable energy.

COP27 was an important step forward, especially the agreement to establish a loss and damage fund. But translating these commitments into action remains the fundamental challenge that needs to be met for realizing the transformation that is needed in developing regions such as Africa.

About Mark Akrofi
Mark Akrofi is a PhD Student at UN University Institute for the Advanced Study of Sustainability (UNU-IAS).