All governments must prepare energy transition plans that consider their reality in terms of green growth, says Damilola Ogunbiyi, CEO and special representative of the UN secretary-general for sustainable energy for all and co-chair of UN-energy.
According to Ogunbiyi, these plans are critical policy and investment tools that will deliver affordable, reliable, clean energy while expanding energy services for all, according to a statement by Sustainable Energy for All (SEFORALL).
In her keynote speech at the 9th Berlin Energy Transition Dialogue, Ogunbiyi said that in working towards a global energy transition, we need to recognise the differing energy realities in different parts of the world and ensure that energy transition pathways allow for differentiated approaches to common goals.
According to her, it is more important than ever to drive forward the global energy transition in the interests of climate change mitigation, energy security, and economic diversification and development.
“We are currently at a time of great uncertainty that has led to a three-dimensional crisis—food, energy, and finance—that is greatly affecting some of the world’s most vulnerable people, countries, and economies. We’re pushing millions back into poverty, especially energy poverty,” she said.
However, it is also an opportunity to change how the world perceives the energy transition and security, she said.
“We are already starting to witness the global energy landscape changing dramatically. For example, renewable energy capacity in the EU is projected to double between 2022 and 2027.
“Similarly, a commitment toward the energy transition is also seen in developing countries–Asia and Africa. However, it is important to stress that the energy crisis is truly global. Although some of the biggest disruptions have been felt in Europe and the Global North – major impacts are felt in many emerging and developing economies.”
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According to her, the energy transition in developing countries includes transitioning out of poverty, transitioning toward development, transitioning towards growth, and transitioning sustainably.
“Global investment in renewable energy reached a record high in 2022, at USD 0.5 trillion, but this represented less than 40 percent of the average investment needed each year between 2021 and 2030 if we are to meet the sustainable development goals and limit global warming to 1.5°C,” she said.
“More striking than the absolute numbers is that Sub-Saharan Africa received less than 1.5 percent of the amount invested globally in renewable energy between 2000 and 2020. Nearly 15 percent of the world’s population only received 1.5 percent of the global investment in renewable energy.”
According to Ogunbiyi, the disparity in renewable energy financing received by developed versus developing countries has increased significantly over the past six years. So a creative solution is needed to ensure no one is left behind.
“This is why we take a context-specific, country-focused approach. Solutions must be scalable, but they must also respond to country needs, and global phenomena.”
Ogunbiyi added that it is important that we see carbon finance emerge as an important source of capital to drive climate ambitions.
The Africa Carbon Markets Initiative (ACMI), launched last November at COP27, has ambitious targets that plan to produce 300 million carbon credits annually by 2030, 1.5 billion credits annually by 2050, unlock six billion in revenue by 2030 and over 120 billion by 2050. The target also includes plans to support 30 million jobs by 2030 and over 110 million jobs by 2050.
She said: “We have recently launched the Renewable Energy Manufacturing Initiative (REMI) for Africa and Asia, looking at the manufacturing of solar PV, lithium-ion batteries, and electric 2-wheelers.
“It is critical to understand that the continent should not be seen as an extractive continent but one that can add value.”
According to her, many developing countries are willing to be leaders and equal partners in the energy transition. Countries like Kenya, Nigeria, Ghana, and Barbados are developing world-class whole Economy Transition Plans (ETPs).
“Supporting the ETPs is a great investment opportunity, and countries such as Germany, with a strong presence with BMZ, GIZ, KfW already investing in Africa, could be great for the transition – offering more collaborative action in a changing global energy market,” she said.
