$100 billion needed annually for Africa's renewable energy goal - Report - Business Insider Africa
$100 billion needed annually for Africa's renewable energy goal - Report | Business Insider Africa
- Sub-Saharan Africa needs to boost its investment in renewable energy by fivefold.
- At COP28, governments reached a consensus to triple global renewable energy installations by 2030, to cap global warming at 1.5°C.
- Investments must increase from $20 billion in 2023 to $100 billion annually by 2030.
$100 billion needed annually for Africa's renewable energy goal - Report
To meet the commitment of increasing global clean energy capacity to 11,500 gigawatts by 2030, Sub-Saharan Africa needs to boost its investment in renewable energy by fivefold, according to a recent study.
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At COP28, governments reached a consensus to triple global renewable energy installations by 2030, to cap global warming at 1.5°C.
For Sub-Saharan Africa to play its part in achieving this target, investments must increase from $20 billion in 2023 to $100 billion annually by 2030, as outlined by Climate Analytics.
The policy institute’s study builds on the COP28 agreement by proposing regional benchmarks and calculating the amount of funding required. That compares with a global need of $2 trillion a year from 2024 to 2030, the study shows.
What the study said:
“Without an urgent and rapid increase in finance to support renewables deployment in Africa, millions will miss out on the benefits of the renewables revolution - cleaner air, cheaper power and increased energy security,” the Berlin-based institute said in the report released Tuesday.
“Much more needs to be done to mobilize renewables and grid expansion in less wealthy countries.”
Sub-Saharan Africa stands as the least electrified region globally, with over half its population lacking access to power.
According to data from the International Energy Agency (IEA), some 660 million are projected to remain without access in 2030, of which 85% or about 560 million people will be in Sub-Saharan Africa.
The study suggests that Africa must boost its renewable capacity to 300 gigawatts by 2030, and retire just about 60 gigawatts of fossil fuel energy by 2040. In stark contrast, Europe faces the need to retire 1,500 gigawatts of environmentally detrimental energy by 2035.
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”