As leaders and delegates from all over the world gathered at the Kenyatta International Convention Centre (KICC) in Nairobi for the Africa Climate Summit & Africa Climate Week 2023 since the 4th of September, the main topic has been the promotion of green energy and finance solutions to handle the climate crisis the world is facing. Africa has been active in the uptake of green energy but the continent still continues in its exploration of oil and gas causing activists to condemn African leaders as they consider these energy sources as dirty. However, knowing their advantage to Africa, the African Energy Chamber (AEC) has called on African Union (AU) to align policies and embrace gas and nuclear energy as green solutions.
Africa is able to benefit much from oil and gas. They are able to play a major role in increasing access to electricity, advancing energy security, fuel industrialization and opening up economic opportunities for the growing population. Currently, over 600 million people are without access to electricity in Africa while 900 million are without access to clean cooking solutions. At the same time, the continent has one of the youngest and fastest-growing populations. As demand for energy grows, Africa’s gas resources are able to fuel the economy.
However, the International community continues to villainize African gas, even though it was only recently that the European Union made a decision to label natural gas and nuclear energy as green. After July 2022, when European Parliament made the decision, foreign investors and project developers were able to to fund and develop such projects. It seems although, EU’s recognition of gas as green was only directed at Europe, and that African gas resources were to remain ‘dirty’ according to some activists.
To fully benefit Africa, there is need for investment in the gas industry. The continent’s proven gas resources are measured at 620 trillion cubic feet, most of which remain undeveloped. Lack of investment in the gas industry has largely restricted monetization, despite the potential of the resource to alleviate energy poverty. Domestic gas utilization is also still in its infancy stage, with the majority of Liquefied Natural Gas (LNG) exported to European markets.
While the AU has put in place policies such as the African Continental Free Trade Agreement (AfCFTA), intra-African trade cannot be fully implemented if gas is not identified as a green energy source. To alleviate energy poverty and bolster industrialization, Africa requires substantial investments to be made in pipeline, power infrastructure, LNG terminals and applications. An AU-led ‘gas is green’ policy will galvanize financing for the continent’s gas projects while kickstarting the development of small- and large-scale LNG and power generation facilities.
The AU can no longer avoid to use the resources it has due to being labelled as villainous while other such as the European Union continue to develop from the same resources. In fact Africa produces less than 2% of global greenhouse gas emissions, its unfair that it is among the most affected continent and it does not benefit from these energy resources.
According to NJ Ayuk, Executive Chairman of the African Energy Chamber, The AU should not villainize the very resources that offer the continent the chance to industrialize, electrify and grow, but rather, should provide the regulatory tools that enable the trade of gas-based products on a continental basis. “Africa has abundant natural gas resources: a sustainable energy solution lying in arms reach of many countries continent-wide. Developing these resources is no longer simply an exciting or challenging investment opportunity, but rather, investing in gas and nuclear has become one of the only ways Africa will industrialize and make energy poverty history,” he said.
Gas and nuclear energy can undeniably act as a pivotal lifeline for numerous African nations. By mirroring the policies of the EU, the AU could set the stage for a substantial influx of foreign investment, which, in turn, could serve as a catalyst for propelling commodity-driven and gas-centric industrialization efforts across the African continent. Africans deserve to have the same advantage as European have. By implementing a ‘gas is green’ policy for Africa, the AU stands to usher in a new era of investment and development in Africa, while spearheading a just and inclusive energy transition.
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