Public Management

UAE Pledges $4.5 Billion for Clean Energy in Africa Amidst Rising Climate Crisis

UAE Pledges $4.5 Billion for Clean Energy in Africa Amidst Rising Climate Crisis
Wednesday, 06 September 2023 04:58

In 2022, the adverse effects of climate change resulted in economic damages exceeding $8.5 billion in Africa, as reported by the World Meteorological Organization (WMO). The African Climate Summit aims to produce actionable solutions, in a context where decisions taken by world polluters during previous COP meetings had little impact.

The United Arab Emirates (UAE) pledged, on September 5, 2023, investments totaling $4.5 billion in clean energy projects across Africa. Citing the COP28’s designated president, Sultan Al Jaber, local media reported that the commitment was made during the African Climate Summit (ACS), currently held in Nairobi, Kenya.

The initiative, according to Al Jaber, aims to foster "15 GW (gigawatts) of clean energy by 2030" and "catalyze at least an additional $12.5 billion from multilateral, public, and private sources". Partners in this venture include Abu Dhabi's clean energy firm Masdar, the Abu Dhabi Development Fund, Etihad Credit Insurance, renewable energy company AMEA Power, and Africa50, an investment platform set up by African governments and the African Development Bank.

"Priority will be given to investments in African countries with clear transition strategies, enhanced regulatory frameworks, and a master plan for developing integrated supply and demand grid infrastructure," the same source added.

Under its "Etihad 7" program, the UAE also wants to generate 20 gigawatts, providing clean electricity to 100 million people in Africa by 2035.

Though it is a very small polluter, Africa suffers disproportionately from climate change and its effects. The phenomenon severely threatens the continent’s food security, ecosystems, and economies, consequently intensifying displacement and the threat of conflict caused by dwindling resources. According to the World Meteorological Organization (WMO), over 110 million people in Africa were directly affected by weather, climate, and water-related hazards in 2022, leading to the aforementioned economic damages.

The African Climate Summit, scheduled in Kenya from September 4-6, aims to mobilize the funds Africa needs to fight global warming and draw solutions that better match its needs. Together, the Summit’s participants–heads of state and governments, and industry leaders–strive to promote Africa's potential as a clean energy powerhouse.

Despite boasting the world's most significant solar potential and vast wind energy opportunities, Africa's installed renewable energy capacities account for only about 1% of global solar photovoltaic and wind capacities. However, the International Renewable Energy Agency (IRENA) anticipates that by 2040, Africa's renewable energy capacity could surge to over 530 gigawatts, up from around 54 gigawatts in 2020. 

It is worth noting that of the $2.8 trillion that have been invested globally in renewable energies over the past 20 years, only 2% of the funds went to Africa, despite the continent's colossal potential and pressing needs.

Charlène N’dimon (intern)

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
Côte d’Ivoire will receive $234 million for a sustainable urban mobility project in Abidjan. Gambia will receive $32.2 million to build...
Stanbic IBTC and Zenith Bank cut monthly card spending abroad to $500 and $200 Foreign reserves fall by $3.5 billion in six...
Cauri Money launches Gajo Money, an e-wallet for the Cameroonian diaspora, targeting €120 million in transactions by end-2025. The fintech...
• Kenya and ASR sign deal to reduce risk on projects worth up to $2 billion.• Risk cover will target infrastructure, energy, logistics, and trade...
Most Read
01

• Investors seem to keep focusing on yields, which are high for the moment• New Leadership might see...

Afreximbank Bonds Retain Market Confidence Despite Moody’s Downgrade
02

• Qatar Airways and Kenya Airways establish strategic agreement, introducing a third daily flight be...

Qatar Airways Expands its Network in Africa, Building Presence in Kigali, Johannesburg, and Nairobi
03

• ECOWAS Bank funds 47.7-km stretch of strategic 700-km road project• Lagos-Calabar highway seen boo...

Nigeria Secures $100 mln ECOWAS Bank Loan for Lagos-Calabar Coastal Highway
04

• EY is preparing to leave Francophone Sub-Saharan Africa by 2026• The exit could unlock $500 m...

EY’s Exit Creates $1bn Opportunity in Francophone Africa Consulting Market
05

• Inflation within the West African Economic and Monetary Union (UEMOA) fell to a two-year low of 0....

UEMOA: Inflation Drops to 0.6% in May, Driven by Lower Food Prices
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.