Moments ago, the World Economic Forum (WEF) released a report that only reinforced the tough job ahead for Nigeria’s next president ahead of crucial votes Saturday, Feb 23.
Dozens of fossil-fuel-rich economies, including Nigeria, could be at risk of becoming “stranded nations” that are unable to realize the economic value of their carbon wealth, as efforts ramp up to avoid the worst effects of climate change and transition away from fossil fuels, according to the WEF report titled “Thinking Strategically: Using Resource Revenues to Invest in a Sustainable Future.”
WEF expects the global energy shift to negatively affect economies that have over 10 percent of their total wealth based in carbon assets and says the affected countries must act now to develop the human capital and economic diversification to thrive in a world that is less dependent on carbon energies.
Nigeria holds 21 percent of its wealth in carbon assets, higher than Egypt’s 11 percent but lower than Iraq’s 67 percent, according to WEF data.
The threat of an energy shift that leaves oil-dependent economies for dead has always been there, only that this time it may happen quicker than expected.
Fresh estimates predict between two-thirds to three-fourths of energy will come from green sources by 2050, which is much higher than estimates crafted a decade ago, when just 15 percent of energy was expected to be green by 2050.
“This means countries with high carbon wealth may have even less time than anticipated to avoid being stranded as the pace of the green energy shift continues to beat predictions,” said Maha Eltobgy, Head of Shaping the Future of Long-Term Investing, Infrastructure and Development at the World Economic Forum.
“The resource dependent, fossil-fuel-rich nations that have diligently built large sovereign wealth funds to manage the economic challenges of the Age of Oil must now consider how to use this vast wealth to prepare for the Age of Green Energy,” Eltobgy said.
Sadly, Nigeria hasn’t built the sovereign wealth funds required to be better prepared for the Age of Green Energy which Eltobgy speaks of.
Of the 41 fossil-fuel-rich countries surveyed by WEF, Nigeria ranks bottom, with about $2 trillion in savings compared to Norway’s $1 trillion war chest. Norway ranks top.
LOLADE AKINMURELE
