Conversations on climate change and sustainable development are not complete without extensive mention of green energy. As the call to shift to clean energy echoes in every corner of the world with the ever-precarious climate conditions, the global south is impaired in this critical race.
Interestingly, despite Africa accounting for less than 4% of all global greenhouse gas emissions, many of its countries face significant threats from climate change, including increased droughts, floods, heat waves, and potential crop failures. Moreover, Africa is highly dependent on extraction of natural resources within its borders for its economy, including oil and gas and minerals such as cobalt, copper, gold, and diamonds.
Climate change costs the continent US$5 billion to US$7 billion yearly, a figure projected to reach US$50 billion by 2030. Estimates suggest its impact could push 50 million Africans below the poverty line, while 100 million are at risk of being displaced. At the same time, around 600 million people in Africa still lack access to energy, fundamental for economic development.
This stark economic reality is further exacerbated by the increasing pressure to abandon the reliance on commodity exports, including fossil fuels, despite being a potentially lucrative revenue stream to the underdeveloped continent.
Tackling the twin imperatives of sustainable development – meeting the needs of the present without a negative impact on the future – and economic growth in Africa is paramount. However, to enjoy the same economic opportunities as the global north, the most obvious solution for many African countries is exploiting the large and relatively untapped natural resources that lie within their borders.
As former Nigerian president Olusegun Obasanjo put it at the Africa Energy Week 2023,
“Where is the justice when you used what (fossil fuels) was available to you, but we (Africans) can’t use it? You want to keep us in the habitual position of underdevelopment. We reject that!”
With its vast natural resources, Africa can become a green industrial hub to exploit its renewable energy resources and lead the charge toward decarbonization. But to achieve this technological transformation and to construct the necessary batteries, solar panels, and electrical vehicles requires raw materials.
However, the launch of the green revolution is expensive as it requires extensive investment and also, it needs to address the unique needs of individual countries and even individual people. Solar energy for instance would be effective in a country that has a reliable and extensive grid to store and then effectively distribute the energy generated. Majority of African countries lack the infrastructure to adopt this form of energy generation.
A 2017 research paper examined 29 publicly funded renewable energy projects in sub-Saharan Africa, revealing key reasons for their failures. Common issues included political interference, flaws in the project awarding process, inadequate stakeholder collaboration, poor planning and implementation, and insufficient maintenance. Additionally, challenges related to public acceptance and inclusion highlighted the significance of considering local contexts in green initiatives.
Large-scale sustainable solutions like wind farms and geothermal plants often fall short when considered from a local perspective. In many developing countries, energy needs are immediate and localized, such as individuals gathering firewood to cook meals. These mega projects require time that many urgently in need of energy simply do not have. Additionally, securing external investment for such initiatives poses challenges.
The Nairobi Declaration from the Africa Climate Summit in September 2023 called for a nearly six-fold increase in the continent’s renewable energy capacity, yet a 2022 Climate Policy Initiative report revealed that Africa has only received 12% of the financing required to address climate impacts, partly due to perceived investment risks.
For the success of green development, it is vital to engage the right stakeholders. This conversation is better led by a shared responsibility between corporates and the government. Companies need to do extensive market research to understand the needs of stakeholder to make their lives better and avoid wrong assumptions. The only way to understand people’s needs is to bring them into the process from the start. Firms need to design products and develop sustainable solutions. But they also must be practical and meet specific needs.
As nations pursue economic growth, they must also address the escalating effects of climate change. Relying on a single model for sustainable development is inadequate. It’s essential to consider regional and local challenges, actively listen to the needs of local stakeholders, and recognize that sustainable development can have varied meanings for different communities.