Energy Fund: How Nigeria can benefit – Analysts

Energy analysts have listed conditions for Nigeria to benefit from the over $100bn African carbon market initiative geared towards achieving clean energy Africa had recently secured about $64m, brokered by the Sustainable Energy Fund for Africa, from the Norwegian Agency for Development Cooperation (NORAD) as well as the Global Energy Alliance for People and Planet

The Sustainable Energy Fund for Africa (SEFA), a multi-donor special fund managed by the African Development Bank (AfDB), provides concessional finance to unlock private sector investments in renewable energy and energy efficiency.

The initiative was developed as part of the framework for emission reduction in the continent, as part of fallout from the recently concluded United Nations Framework Convention on Climate Change 27th edition (COP27)

The fund is worth over $100bn, and is aimed at helping countries in Africa achieve reduction in global emissions savings and actual financing.

Speaking on the theme: “Post-COP27 discussion: Lessons and opportunities for Nigeria”, at the electricity hub power dialogue, Barka Sajou, the executive director at Rural Electrification Agency, highlighted the energy and climate crisis that Nigeria currently faces, and the challenges in financing projects to tackle them.

The analyst believed that although Nigeria has addressed and redressed some issues to aid the country’s energy transition and climate protection, more work is needed to be done.

“There is a need for compliance regulations, and there is a need for a sense of responsibility to follow these regulations,” he said.

They also emphasised the need to expand the conversation around the goal to discontinue carbon-emitting activities.

“Nigeria as a developing country has a lengthy learning process using the developed countries as examples, and one of the core reasons for participation is the need to harness ideas and cooperate to achieve the ultimate goal of 2030 and 2060.

COP 27 has brought about intellectual developments to close the societal gaps to ensure a sustainable environment for everyone in the world.

Read also: Two major takeaways for Nigeria at COP27

Nations, private organisations and individuals have pledged specific commitments to achieve proposed projects, including funding and technical support.

Duke Benjamin, of Climate and Energy Coordinator at the German International Development Agency (GIZ), said that partnerships were crucial to delivering these targets and ensuring that no stone is left unturned.

Benjamin, speaking on GIZ and Germany’s participation at COP27, pointed to the different technical and financial pledges, especially about Nigeria, in achieving the net-zero goals in Africa, as well as the climate alleviation scheme.

He recalled Germany’s role in supporting these actions and projects, such as the Nigerian Energy Support Program (NESP) and other programmes in aid of energy transition in Africa.

Suleiman Babamanu, programme director, Rocky Mountain Institute, noted that transitioning to clean fuel may be difficult for some nations, especially those with gas reserves, because they are dependent on gas.

He, therefore, called for strong financial support, adding that “several clean energy projects aimed at protecting the climate and others would need a lot of financing.”