(Ecofin Agency) - In its recent new white paper, the World Economic Forum (WEF) highlights the importance of directing current and future funding to cleaner energy solutions. The paper was written in collaboration with Deloitte.

The “Financing the Future of Energy” report identifies financing options to accelerate Africa's energy transition and reduce carbon emissions. “The entire continent remains vulnerable, but this White Paper offers a view on what are viable financing options that exist today for clean energy sustainability and equitable recovery for all of Africa," said Chido Munyati, Head of Africa at WEF.

The transition to a net zero-carbon electricity grid will be supported by a "3Ds" concept (decarbonization, decentralization, and digitalization) the report said. Decarbonization will enable the continent to shift from fossil fuel sources to renewable energy. Decentralization is the shift from centralized management of generation, transmission, and distribution to decentralized systems. Digitalization suggests leveraging digital technology to advance the transition.

Mario Fernandes, Deloitte's director of public power and renewable energy in Africa, believes that financing will be the biggest obstacle to Africa's sustainable transition to large-scale renewables. “There are many financing solutions available. Africa’s winners will be those that can leverage what exists while creating an enabling environment for the private sector through a renewable energy investment facility,” he said.

Currently, half of the continent does not have access to reliable electricity. The report explained that as energy demand increases, the gap could be filled by clean energy alternatives. The potential to accelerate the transition to a net-zero future is therefore significant.

Gwladys Johnson Akinocho