• Sunday, October 13, 2024
businessday logo

BusinessDay

Climate Corner balancing economic growth and the energy transition in developing countries

Leading Africa’s climate solutions with Clean Air Task Force

Climate change presents a global challenge that demands concerted efforts from every nation. But it is often misunderstood how this intersects with the ongoing energy transition. Some believe that addressing climate change requires an immediate halt to the use of fossil fuels, which is not entirely accurate. The current calls for mitigation, adaptation, and resilience strategies are not demands for an abrupt end to fossil fuel use but rather for a systematic, thoughtful shift toward cleaner energy sources. In fact, history shows that energy transitions are gradual processes, and while new energy forms emerge, the old ones often persist, albeit in diminished roles.

Throughout history, the world has experienced three major energy transitions. The first occurred during the Industrial Revolution when the global economy shifted from relying on fuelwood to coal. This transition marked the birth of industrialization and transformed the way energy was produced and consumed. But the use of fuelwood did not cease completely. The second energy transition took place after World War II, when the world moved from coal to oil. The rise of oil powered modern economies and led to unprecedented economic growth. But again, coal remained part of the global energy mix. Today, we are witnessing the third major transition, as the world shifts from oil to natural gas, renewables, and zero-carbon energy sources like nuclear power.

What these historical transitions teach us is that the complete abandonment of one energy source is not immediate or guaranteed. Despite significant progress toward cleaner energy, coal and oil continue to play roles in the global energy landscape. Similarly, the current energy transition from oil to gas and renewables does not imply that oil will vanish in the near future. The shift is instead about gradually reducing dependence on high-emission fuels while expanding the use of cleaner, more sustainable alternatives.

As the world strives to address climate change, scientists are working on multiple fronts to develop low-carbon energy technologies. These include both advanced and emerging technologies such as nuclear power, bioenergy, carbon capture and storage (CCS), superhot rock geothermal energy, concentrated solar power, and solar photovoltaics. In addition, innovations in zero-carbon fuels like hydrogen and ammonia are gaining momentum. These efforts aim to complement existing energy systems while also driving new modes of power generation that are more environmentally sustainable.

Developing countries, including those in Africa, are particularly vulnerable to the effects of climate change. They face unique challenges as they negotiate the energy transition, but they also stand to benefit from the adoption of clean energy technologies. One major misconception is that these countries can opt out of the energy transition without significant consequences. In reality, embracing decarbonization strategies could be a pathway to economic growth and resilience. For example, Nigeria and other nations with abundant natural gas reserves have the opportunity to participate in the emerging hydrogen economy by exporting gas to regions like the European Union. But to capitalize on these opportunities, they must meet stringent environmental standards, such as reducing methane emissions in gas production.

For developing countries, the cost of inaction in the energy transition is likely higher than the cost of participation. Delaying decarbonization could lead to economic stagnation, environmental degradation, and missed opportunities in global markets that increasingly prioritize low-carbon energy sources. Nonetheless, by investing in cleaner technologies, these countries can enhance energy security, reduce emissions, and foster economic diversification. Besides, energy transitions often create new industries and jobs, offering pathways for long-term sustainable development.

It is also true that developing countries often face limitations in influencing the global energy transition because they are primarily consumers of knowledge rather than contributors to it. The development of new energy technologies and business models is largely driven by advanced economies, which have the resources and infrastructure to support innovation. To change the narrative, developing nations must shift from being passive participants in the energy landscape to becoming active contributors. This requires investments in education, research, and innovation, as well as fostering public-private partnerships that encourage local development of clean energy technologies.

Despite these challenges, the future of developing countries in the energy transition is not without hope. Global collaboration on climate action offers opportunities for knowledge sharing and technology transfer, enabling these nations to leapfrog older, more polluting technologies. Also, international funding mechanisms, such as climate finance from developed countries, can help support the implementation of low-carbon technologies in developing regions. By actively participating in global climate initiatives, developing nations can ensure that their voices are heard and that they play a meaningful role in shaping the future of energy.

The ongoing energy transition is a global phenomenon that no country can afford to ignore. Since the shift away from fossil fuels will not happen overnight, the need for cleaner energy sources is more pressing than ever, particularly as the world grapples with the impacts of climate change. For developing countries, embracing the transition is an opportunity to secure economic growth, improve energy access, and contribute to global efforts to mitigate climate change. But it is very important for developing countries to invest in education, innovation, and international collaboration to help shape a more sustainable energy future.

 

Mohammed Dahiru Aminu, Ph.D.

[email protected]

Join BusinessDay whatsapp Channel, to stay up to date

Open In Whatsapp