AFRICA: 4.5 billion dollars of Emirati investment in clean energy
The United Arab Emirates (UAE) wants to invest $4.5 billion in renewable energy in Africa. The announcement was made on September 5, 2023 in Nairobi, Kenya, during the first African Climate Summit. Africa faces an investment gap in the renewable energy sector. Despite its wealth of natural resources, the continent receives only 3% of energy investments made around the world.
The first African Climate Summit is moving towards achieving its objectives, in particular that of attracting international investments in the renewable energy sector in Africa. The kick-off was given by the United Arab Emirates (UAE), which will host the next United Nations climate conference (COP28), from November 30 to December 12, 2023. “We will deploy $4.5 billion (…) to launch a pipeline of profitable clean energy projects on this very important continent ,” announced Sultan Al Jaber, Minister of Industry and Technology of the United Arab Emirates, who is also President of COP28, in a speech.
This investment aims to develop 15 gigawatts (GW) of clean energy by 2030, while the continent's renewable energy production capacity was 56 gigawatts in 2022, according to the International Renewable Energy Agency (Irena ). The Emirati investment will also make it possible to mobilize at least 12.5 billion additional dollars, coming from multilateral, public and private sources.
We must invest 2000 billion dollars in renewable energy
A clean energy transition in developing countries is crucial in trying to maintain the Paris Agreement's goal of limiting global warming to below two degrees Celsius since pre-industrial times, and 1.5°C if possible. To achieve this, Irena affirms that investments will have to reach 2,000 billion dollars per year within a decade, or eight times more than currently. According to the same source, Africa receives only 3% of energy investments made throughout the world, despite its wealth in natural resources. For example, the Democratic Republic of Congo (DRC) and Zambia alone account for nearly 80% of the world's cobalt reserves.. A mineral essential for the manufacture of batteries and electric vehicles.
In addition to mobilizing international investments for the development of renewable energies in Africa, the participants of the first African Climate Summit must define a common African vision on development and climate, with a view to the next international climate negotiations. These are expected to culminate with a announced battle over the end of fossil fuels at COP28 in Dubai, in around three months.
