On Tuesday, September 5, the United Arab Emirates pledged $4.5 billion to support clean energy projects in Africa. This was announced during the ongoing Africa Climate Summit in Kenya.
- “The initiative will prioritize investments in countries across Africa with clear transition strategies, enhanced regulatory frameworks, and a master plan for developing grid infrastructure,” COP28 President-Designate, Dr. Sultan Al Jaber, said at the Africa Climate Summit on Tuesday.
According to a Bloomberg report, Abu Dhabi’s clean-energy producer Masdar, Abu Dhabi Fund for Development, Etihad Credit Insurance, the nation’s export credit agency, and AMEA Power, a Dubai-based renewable-energy company, will provide the funds.
- The Abu Dhabi Fund for Development will provide $1 billion of financial assistance.
- The Etihad Credit Insurance will provide $500 million of credit insurance to reduce risk and unlock private capital.
- Masdar is pledging $2 billion of equity and will mobilize an additional $8 billion in project finance targeted to deliver 10 gigawatts of clean energy capacity in Africa by 2030.
- AMEA Power will help fund 5 gigawatts of renewable energy capacity in the continent by 2030, mobilizing $5 billion, with $1 billion in equity investments, and $4 billion from project finance.
Al Jaber’s commitment to closing energy gaps
During the Africa Climate Summit, Dr. Al Jaber said:
- “Almost half of Africa’s population still have no access to electricity, almost 1 billion people lack clean cooking fuels, and this energy gap will only increase as Africa’s population grows.
- “These basic energy needs must be met, and meeting them with low carbon, nature-positive solutions will meet Africa’s development and climate goals at the same time. And the key to making this happen is finance, but it must be made available, accessible and affordable.
- “That is why I am calling on donors to close out the 100-billion-dollar pledge they made over a decade ago and to replenish the green climate fund. I will continue to press on these issues.”
- Also, during a May 10 May 10 UAE Climate Tech conference in Abu Dhabi, Dr. Al Jaber said that the world’s focus should be on emissions reduction as opposed to limiting energy access, as the world population keeps growing. He said:
- “The latest IPCC report has confirmed that the world must reduce emissions by 43% by 2030, and that is if we are serious about keeping the ambition of 1.5 alive. At the same time, we know that global energy demand will continue to increase because an additional half a billion people will join us on this planet by 2030.
- “If we are going to maintain economic progress, while dramatically reducing emissions, we need nothing short of a major course correction. We need to translate what we agree on inside the COP negotiation rooms into practical actions in the real world.”