Category: Energy

Keeping the actual energy industry out of the room for climate talks is crazy

A concerted effort is being made to exclude representatives from the oil, natural gas and coal industries from participating in the upcoming COP28 Conference which will be held in December in the United Arab Emirates.

   Such a move would reverse the progress made from last year’s COP 27 gathering, in which the industries were allowed to participate after having been banned from the 2021 event.

UN Secretary General Antonio Guterres seemed to kick this campaign off in earnest recently when he made a statement blaming the “climate emergency” on the very existence of fossil fuels, rather than the emissions they cause: “The problem is not simply fossil fuel emissions. It’s fossil fuels – period”.

The Secretary General is far from alone in his hostility towards non-renewables. Earlier this year, more than 100 lawmakers from the US and EU sent an open letter to President Biden and the President of the EU raising “profound concern” at how the UN rules “permit private sector polluters to exert undue influence” on that body’s climate change activities.

The letter’s signatories note that at least “636 lobbyists” from the oil and gas industries attended last year’s COP 27 conference held in Glasgow – more people than the delegations of most countries in attendance.

Of course, labelling every oil and gas industry attendee as a “lobbyist” is ridiculous hyperbole and the signatories know it: this is framing designed to make their attendance appear sinister. But there is demagoguery to be spread, and fossil fuel bosses make for easy targets.

Various progressive darlings have piled on their support for banning oil and gas delegates, with Al Gore railing against the practice in a recent TED talk entitled “What the fossil fuel industry doesn’t want you to know”.

US Climate Envoy John Kerry also chimed in over the weekend: in a speech he gave in Scotland, Kerry labelled anyone who disagrees with his rhetoric related to the “climate emergency” as participants in a “cult that constitutes a threat to humanity’s very existence.”

There are some who have rejected this farcical position, however. More thoughtful environmental advocates like Michael Bloomberg, Bill Gates and Ro Khanna have argued that fossil fuels industry reps must be engaged in the climate debate in order to arrive at anything like a reasonable result.

Reaching any sort of real solution requires “oil and gas at the table,” Gates said. “We don’t have time to exclude countries or sectors.”

Rep. Khanna, himself a staunch oil and gas industry critic who recently reiterated his support for a new windfall profits tax on the business, said “sure, have them at the table”.

This is an important interjection into the debate from a man who opposes having the COP28 conference chaired by the CEO of the UAE’s national oil company, Sultan Al Jaber.

In an opinion piece responding to the aforementioned congressional letter, Mr. Bloomberg was more direct, saying, “We need oil producers at the table – including the US, which is the largest oil producer in the world.”

Bloomberg also defended Al Jaber, noting he is “also founding CEO and chairman of its renewable energy company, Masdar, and under his leadership, the UAE has become one of the world’s largest investors in renewable energy.”

The bottom line here is this: even if you accept every word of the alarmist rhetoric from climate alarm leaders like Kerry and Guterres, there is no solution to our emissions problem that is possible without active participation in it by the fossil fuel industries.

It is the responsibility of lawmakers, who understand the real-world trade-offs that ecoactivists find themselves cushioned from, to push back on fantastical demands for results without consequences. It is impossible to even manufacture the preferred solutions of the green movement – wind, solar and electric vehicles – without massive deployment of energy derived from fossil fuels.

These renewed calls for banning oil, gas and coal from even being involved in the debate are ridiculous. We rejected them last year – and the time has come to reject them again.

 

Culled from The Telegraph

Angola Oil & Gas 2023 Officially Launches in Luanda

LUANDA, Angola, July 26, 2023/ — The Angola Oil & Gas (AOG) conference and exhibition was officially launched in Luanda by event organizer Energy Capital & Power (ECP) (https://EnergyCapitalPower.com/) alongside the Ministry of Mineral Resources, Oil and Gas and partners including the National Oil, Gas and Biofuels Agency (ANPG); the Oil Derivatives Regulatory Institute (IRDP); and national oil company Sonangol.

The event was attended by key stakeholders from across the public and private sectors as well as media, and served to kickstart official preparations for the highly-anticipated 2023 edition of the conference.

AOG 2023 partners include the African Energy Chamber (https://EnergyChamber.org/), the Association of Angola Petroleum Service Companies; Rystad Energy; Ethiopian Airlines; UK-Angola Connect; Centurion Law Group; LELLO International; and Cunha Vaz and Association.

Representing the official oil and gas platform for the Angolan energy sector, AOG 2023 will take place under the theme, ‘Energy Security, Decarbonization and Sustainable Development,’ with regional petroleum ministers, global investors and project developers, and both public and private sector firms convening in Luanda from September 13-14 to discuss the most pressing matters in the country’s oil and gas industry, forging a future built on the sustainable development of oil and gas.

AOG 2023 serves to build on the success of the previous three editions to drive new investment flows into the growing Angolan economy. The event features panel discussions, investor summits and market-focused presentations covering the entire oil and gas sector and its value chain, and falls in line with national efforts to position the country as a regional petroleum hub.

“This year, we anticipate AOG 2023 to grow exponentially, with more than 40 countries participating. AOG represents an excellent opportunity for investors to learn more about the potential of Angola’s oil and gas sector, and the government policies and regulations that affect it,” states Sergio Pugliese, President, African Energy Chamber: Angola chapter.

Dedicated upstream panels will explore progress being made by E&P companies in high-potential basins including Kwanza, Namibe and Lower Congo. Updates will be provided by companies to the likes of TotalEnergies, Afentra – who recently made two major acquisitions in Block 3/05 and 3/05A -, Azule Energy, ENI and many more. On the eve of a new licensing round set to be launched, the ANPG will showcase the investment opportunities and upstream competitive of Angola’s offshore market.

Downstream, Angola’s focus on regional connectivity and refining will see discussions center on intra-African trade, infrastructure progress and industrialization, with a suite of downstream players spearheading dialogue around Angola’s future as a regional processing hub.

On the gas front, AOG 2023 will comprise dedicated natural gas sessions with speakers exploring the role gas will continue to play in driving sustainable economic growth in Africa. Projects such as the Angola Liquefied Natural Gas facility, the Quiluma/Maboqueiro gas fields, the Cameia-Golfinho developments and others will be showcased while high-level speakers detail the country’s efforts to bolster gas monetization and energy security through gas-to-power.

In line with national renewable energy targets, AOG 2023 serves as a platform for green energy stakeholders to sign deals and kickstart new developments across the solar, wind and green hydrogen space. Updates on projects such as the Quilemba solar station, the 960 MW Cambambe I and 700 MW Cambambe II facilities and the Lauca hydroelectric power plant will be provided while new developments kick off.

AOG 2023 serves as the premier gathering for the Angolan oil and gas sector. Taking place from September 13-14 in Luanda, regional and global stakeholders will convene in Luanda under the theme, ‘Energy Security, Decarbonization and Sustainable Development.’ Visit www.AngolaOilAndGas.com for more information.

Africa: Invest in the Republic of Congo Energies at African Energy Week (AEW) 2023 to Showcase Oil, Gas and Renewable Opportunities.

The African Energy Chamber (AEC) (http://www.EnergyChamber.org) – the voice of the African energy sector – is proud to announce that an Invest in the Republic of Congo Energies forum will take place during this year’s edition of the African Energy Week (AEW) conference and exhibition – Africa’s premier event for the energy sector, scheduled for 16 – 20 October in Cape Town.

Taking place under the AEW 2023 umbrella theme, ‘The African Energy Renaissance: Prioritizing Energy Poverty, People, the Planet, Industrialization and Free Markets’, the Invest in the Republic of Congo Energies country spotlight will unite the central African country’s energy policymakers and companies with global investors to discuss pressing industry challenges while showcasing and optimizing energy transition opportunities.

With the Congo seeking to maximize the development and exploitation of its 1,811 million barrels of proven oil and 284 billion cubic meters of gas reserves to drive gross domestic product growth and energy security both at local and regional levels, the country’s upstream, midstream and downstream development sectors are witnessing growing opportunities for project developers and investors alike. Already, a strong slate of regional and global energy companies is capitalizing on the opportunities the market presents. Global energy service provider Technip Energies inked a deal with the Ministry of Hydrocarbons to expand offshore field cooperation while energy services firm Expro signed a contract with Eni for the development of a liquefied natural gas (LNG) pre-treatment plant this year. Additionally, with the aim of increasing exports to Europe from one billion cubic meters per annum in 2023 to 4.5 billion cubic meters from 2025, E&P companies Eni and New Fortress Energy are bolstering production. Eni inaugurated the three-million-ton-per-annum Congo LNG project this year, having partnered with New Fortress for the development in 2022.

However, while the country currently represents one of Africa’s top four producers, the Congo is looking at securing new investment in gas with the aim of maximizing reserves across both marginal and large-scale plays. Notwithstanding efforts to increase exports, the government is committed to leveraging domestic gas for power generation as part of the Gas Master Plan – a framework to promote the utilization of up to 10 trillion cubic feet of gas reserves by attracting foreign investment. In this scenario, a wave of opportunities has opened up across the market, and the government is inviting investors and developers in the gas-to-power, storage, LNG and liquefied petroleum gas spaces to join the highly promising market.

“The Chamber is proud to host a strong delegation of Congolese decision-makers and energy companies during the Invest in the Republic of Congo Energies country spotlight at AEW 2023, where conversations will showcase natural gas production and commercialization prospects within the country’s hydrocarbon-rich basins. The Congo is making a strong play for investment and the country spotlight serves as a pivotal platform for projects to be showcased, opportunities promoted and new deals to be made on the back of collaboration and insight,” stated NJ Ayuk, the Executive Chairman of the AEC.

However, the country’s opportunities transcend natural gas, with significant oil reserves coupled with a favorable fiscal environment promising high returns on investment. The country offers solid production experience as an OPEC member and boasts a wide range of energy majors in its market. These include Perenco, which brought four wells onstream at the Boatou development this year and has recently acquired Eni’s Congolese oil assets in a $300 million deal. The participation of global major Chevron and energy service providers Halliburton and Baker Hughes are also a testament to the market’s potential and size.

Further to positioning the country among the world’s top producers and exporters, the Republic of Congo’s ongoing revitalization of oil fiscal terms and drilling campaigns in the Lianzi Unitization Zone and in the Nkossa, Nsoko and Moho Bilondo areas have enabled the country to attract new investments, make huge discoveries and kickstart new production lines to drive energy security and socioeconomic developments. In this regard, the Invest in The Republic of Congo Energies forum at AEW 2023 will serve to help Congo seal new oil investment deals.

In regard to opportunities within the renewable energy space, the establishment of the Oyo Centre of Excellence for Renewable Energy and Energy Efficiency is a testament to the country’s commitment to diversify the economy, maximize energy transition opportunities and boost consumer access to clean cooking solutions and reliable energy. The AEW 2023 country spotlight, through technical presentations and exclusive networking, will unite Congolese energy stakeholders with global renewables investors to forge partnerships and sign industry-changing deals.

AEW 2023 is the AEC’s annual event driving the African energy renaissance through uniting local and regional energy stakeholders with global investors to discuss the future of African energy. For more information about AEW 2023, visit https://AECWeek.com/

Distributed by APO Group on behalf of African Energy Chamber.

Dangote oil refinery launched in Nigeria

 Africa’s biggest oil refinery has been opened in Nigeria, where it is hoped it will alleviate chronic fuel shortages.

Nigeria is a major oil producer but most of this is sent abroad while it has to import the refined fuel used in vehicles and elsewhere. As a result the country often faces chronic fuel shortages. This is the problem that the $19bn (£15.2bn) refinery, owned by Africa’s richest man, Aliko Dangote, is intended to tackle. “This is a game-changer for the Nigerian people,” said President Muhammadu Buhari. The plant, which is not yet operational, has the capacity to produce about 650,000 barrels of petroleum products a day – more than enough to supply the country’s needs. It also includes a power station, deep seaport and fertiliser plant.

Nigeria’s existing refineries have been completely shut down for over three years owing to oil theft, pipeline vandalism and structural neglect. If it works as planned, the plant could make a real change to the lives of Nigerians: “Every time there is fuel scarcity, I don’t open my shop because there’s no light [electricity] to work and I can’t buy fuel for my generator,” a young hairdresser from Lagos told the BBC.

At Monday’s launch, Mr Dangote outlined his hopes for the refinery: “Our first goal is to ramp up production of  the various products to ensure that within this year, we are able to fully satisfy the nation’s demand for quality products.”

However, it is not clear what impact the plant will have on the price of fuel in a country where retail prices are subsidised. The government says these subsidies will soon be removed – last year they took up at least a quarter of the national budget.

Mr Dangote’s plant in Lagos, which took nearly seven years to build, is said to be the world’s largest single-train refinery, meaning the plant has one integrated distillery system which can produce a variety of products and petrochemicals, instead of  having different units for each type of product.

It is one of the last major projects to be inaugurated by President Buhari, who steps down next week after serving two terms in office.

President Buhari will hand power to Bola Tinubu, who won disputed presidential elections in February.

Oil and gas expert Henry Adigun told the BBC that Monday’s launch was “more political than technical”.

Culled from BBC news.

H.E. Itoua To Presents Gas, Marginal Field, Exploration Opportunities At Invest In African Energy Paris Forum.

At the Invest in African Energy Paris Forum, H.E. Bruno Jean Richard Itoua, Minister of Hydrocarbons of the Republic of Congo, will present on opportunities in gas and marginal field exploration.

JOHANNESBURG, South Africa, April 24, 2023/ — The African Energy Chamber (AEC) (www.EnergyChamber.org), the voice of Africa’s energy sector, is proud to announce that H.E. Bruno Jean-Richard Itoua, Minister of Hydrocarbons of the Republic of Congo, will speak at the Invest in African Energy Forum in Paris on the 1st of June. The event aims to facilitate connections between European investors and African executives, and with H.E. Minister Itoua’s participation, insight into one of Africa’s most exciting E&P players will be provided.

H.E. Itoua brings with him a wealth of experience and knowledge of the oil and gas industry, having served as the Head of the National Petroleum Company of Congo for seven years. Itoua’s impressive professional career in the energy sector and his strong academic background in engineering and business administration make him the perfect candidate to manage the up-and-coming developments in Congo’s oil and gas sector, as evidenced by his appointment as the President of the Organization of Petroleum Exporting Countries for 2022.

Under Itoua’s leadership, the Republic of Congo has made significant strides in maximizing its hydrocarbon industry. Through policy reforms and various upstream, midstream and downstream expansion campaigns such as the Gas Master Plan, the Minister has promoted local content and capacity building programs aimed at boosting the country’s entire hydrocarbon sector. These efforts have resulted in Congo becoming one of Africa’s largest oil producers and has positioned it to become one of the next countries to join the list of Africa’s liquefied natural gas (LNG) producers.

One such effort is the ongoing Litchendjili Gas Project, which transitions Congo into a regional clean energy powerhouse and a global gas hub. With the country’s ten trillion cubic feet of natural gas reserves, the Republic of Congo is attracting significant investment in its natural gas industry. Eni Congo’s recent agreement with Wison Heavy Industry to construct its second floating LNG (FLNG) facility in Congo, with a capacity of 2.4 million tons of gas per annum, is a significant step towards maximizing its gas operations for both domestic use and export to meet Europe’s growing energy demand. The FLNG facility is part of Eni’s gas valorization plan in the Marine XII block offshore Congo, with a goal of increasing LNG production to three million tons per year by 2025.

The Minister has played a vital role in promoting Congo’s natural gas industry and attracting foreign investment. He has collaborated closely with companies like Eni Congo to develop the Marine XII block and establish Congo as a major player in the global LNG market. The recently signed ten-year contract between Eni Congo and Expro Group for the development of an onshore LNG pre-treatment plant will further boost LNG production for local electricity generation, supporting Congo’s gas monetization agenda and contributing to GDP growth. In short, H.E. Itoua’s impressive leadership has helped position Congo as a key player in the global energy market, with a promising future ahead.

“We are delighted to have H.E. Bruno Jean Richard Itoua, the Minister of Hydrocarbons of the Republic of Congo, join us at the Invest in African Energy reception in Paris. His attendance further highlights the importance of Africa as a key player in the global energy industry and the potential for collaboration between European investors and African executives. We look forward to hearing his insights on investment opportunities in Africa’s energy sector,” states NJ Ayuk, Executive Chairman of the African Energy Chamber.

H.E. Itoua’s attendance at the Invest in African Energy Forum in Paris and his presentation on investment opportunities in gas, marginal field, and exploration in the Congo highlights the country’s commitment to maximizing its hydrocarbon industry. With his extensive knowledge and experience in the energy sector, he will be instrumental in connecting potential investors with new oil and gas opportunities in the country.

Distributed by APO Group on behalf of African Energy Chamber.

SOURCE:

African Energy Chamber

Mauritania’s BirAllah Gas Field: A Revolutionary Development In West Africa’s Gas Sector

The BirAllah gas field is expected to produce 10 million tons of LNG per year  creating new employment opportunities and generating a substantial income for Mauritania.

NOUAKCHOTT, Mauritania, April 20, 2023/ — Mauritania’s BirAllah gas field, located in the Mauritanian coastal basin, has garnered significant attention from major players in the oil and gas industry, including Bp and Kosmos Energy, due to its immense investment potential.

In October 2022, a deal was signed between the Mauritanian government and these industry giants, setting the stage for the exploration and development of this promising prospect, which is estimated to hold 80 trillion cubic feet of gas.

As per the agreement, Bp will conduct comprehensive studies to enable the field’s development to commence within 36 months. The stakeholders are hopeful that these studies will establish the feasibility of establishing companies to exploit the project in the strategic port area of Ngago, located in southwest Mauritania, which is the closest coastal point to the field.

The BirAllah gas field possesses numerous attributes that makes it an attractive investment opportunity. It boasts a well-defined structure, high-quality reservoir properties, and top-grade gas. Moreover, the field has the potential for significant production rates, with initial estimates suggesting it could yield up to 4 billion cubic feet of gas per day.

The development of the BirAllah field is of significant importance to Mauritania’s gas industry (https://apo-opa.info/3UTUPmb), which has faced challenges in attracting investment in the past due to political instability and inadequate infrastructure. However, the discovery of the BirAllah field has the potential to change this narrative, as it represents one of the largest offshore gas discoveries in Africa in recent years.

The participation of prominent global companies such as Bp and Kosmos Energy in the BirAllah field underscores the immense investment potential of this oil field. These prominent global companies not only bring substantial capital but also possess the expertise and advanced technology required for unlocking the BirAllah gas field’s maximum development potential. Furthermore, this development is expected to attract additional international oil companies (IOCs) to invest in Mauritania’s gas industry, signalling to the world that Mauritania is a viable investment destination, potentially leading to further exploration and development of the country’s abundant gas reserves.

According to the International Trade Administration, the energy sector offers some of the most promising investment opportunities in the market. Bp and Kosmos Energy are poised to lead the charge in transitioning hydrocarbons as the driving force of Mauritania’s economy, surpassing iron ore. Currently, several supermajor oil and gas companies are exploring offshore Mauritania, with 22 blocks available for leasing. Additionally, there are opportunities for developing fields where oil has already been discovered, as well as providing supplies and logistical support to companies operating within the sector, presenting attractive investment prospects.

The completion of the BirAllah field, projected to take place over multiple years, has the potential to be a game-changer for Mauritania’s economy. The first gas exports from the field could be facilitated through the Ngago port area, which boasts the necessary infrastructure, including a deep-water harbor, access to electricity and water, and proximity to major shipping lanes, to support the construction of a gas terminal. The substantial revenue generated from gas exports has the potential to significantly bolster Mauritania’s economy, providing a fresh source of income for the country. Additionally, the development of the BirAllah field has the potential to create new employment opportunities and support the growth of local businesses in the region.

The development of the BirAlla gas field is also expected to create new job opportunities and generate income for Mauritania. This vast reserve of energy promises to power the world and transform the fortunes of the country. With the estimated output of 10 million tons of liquefied natural gas per year, the BirAlla gas field represents an opportunity to boost economic growth and create a more prosperous future for Mauritania.

Join us (https://apo-opa.info/41JJyHn) in Nouakchott, Mauritania on 21-22 November 2023 for the third edition of the MSGBC Oil, Gas & Power Conference & Exhibition (https://apo-opa.info/3LgiTwm) where we will unpack investment and exploration potential under the theme “Scaling Energy Opportunities in Africa’s New Frontiers.”

Organized by Energy Capital & Power, MSGBC Oil, Gas & Power 2023 will unite the region’s energy policymakers, companies and investors with global counterparts to discuss and optimize investment opportunities within the energy market.

Distributed by APO Group on behalf of Energy Capital & Power.

SOURCE

Energy Capital & Power

MultiChoice calls on climate change activists and innovators across Africa to submit nominations for the prestigious Earthshot Prize for £1 million.

JOHANNESBURG, South Africa, January 12, 2023/ — The Earthshot Prize, a global environmental prize to discover, accelerate, and scale ground-breaking solutions to repair and regenerate the planet, has begun its 2023 search for breakthrough solutions to solve the globe’s biggest environmental challenges. MultiChoice (www.MultiChoice.com), the official African broadcast partner and member of The Earthshot Prize Global Alliance, is issuing a call for entries from African organizations, businesses, governments, and individuals who are doing scalable and impactful work in this capacity. Potential nominees can enter into any of the five categories of the Earthshot Prize, including: Protect and Restore Nature, Clean our Air, Revive our Oceans, Build a Waste-Free World and Fix our Climate. The Prize is awarded annually to five winners, each receiving a US$1.2 million/ R 20 million (£1 million) prize grant to scale their projects.

Each year, The Earthshot Prize launches a global search for breakthrough solutions, with a worldwide network of more than 350 nominating individuals and organizations from 66 countries tasked with ushering the process through. As an official nominator, MultiChoice has established an official entry portal (https://bit.ly/3X3Rr8Q) and asks that all submissions be submitted by 27 January 2023. Representatives from MultiChoice will then review these entries and officially nominate selections directly to The Earthshot Prize.

“By entering this prestigious prize, African innovators will be afforded the platform to pitch their solutions, inspire other corporates to join the fight against climate change and motivate governments to prioritize climate change as part of their national agendas,’’ said Imtiaz Patel, Chairman, MultiChoice Group. “If you have a worthy intervention whose solution makes significant progress towards achieving any of the five Earthshots, we urge you to send in your nomination and be part of the solution.’’

When The Earthshot Prize was first launched in 2021, three African organizations were selected as finalists namely, Sanergy (from Kenya), Reeddi Capsules (from Nigeria) and Pole Pole Foundation (from the Democratic Republic of Congo).

On December 2, 2022, Prince William and The Earthshot Prize revealed the 2022 winners. African based Mukuru Clean Stoves, a start-up providing cleaner-burning stoves to women in Kenya to reduce unhealthy indoor pollution and provide a safer way to cook, won the coveted environmental prize during the inspirational awards ceremony hosted in Boston.

In addition to the US$1.2 million/ R 20 million (£1 million) prize, Mukuru Clean Stoves will benefit from a global network of professional and technical support to scale their work.

This includes access to resources across numerous professions and sectors including manufacturing, retail, supply chains, legal advice, digital technology, business strategy and government relations via The Earthshot Prize Global Alliance. The Prize will allow Mukuru Clean Stoves to create an even cleaner stove that burns ethanol, and within three years, they hope to reach one million customers. Within the decade, they hope to expand their impact to ten million people all over Africa.

The final five winners were selected from a group of 15 finalists from 10 different countries

by The Earthshot Prize Council – a global team of influential individuals committed to championing positive action in the environmental space.

The five Earthshot Prize Winners for 2022 are:

Protect and Restore Nature: Kheyti, India: A pioneering solution for local smallholder farmers to reduce costs, increase yields and protect livelihoods in a country on the frontlines of climate change.

Clean our Air: Mukuru Clean Stoves, Kenya: A start-up providing cleaner-burning stoves to women in Kenya to reduce unhealthy indoor pollution and provide a safer way to cook.

Revive our Oceans: Indigenous Women of the Great Barrier Reef, Australia: An inspiring women-led programme that combines 60,000 years of indigenous knowledge with digital technologies to protect land and sea.

Build a Waste-free World: Notpla, United Kingdom: A circular solution creating an alternative to plastic packaging from seaweed.

Fix our Climate: 44.01, Oman: Childhood friends who have developed an innovative technique to turn CO2 into rock, and permanently store it underground.

At MultiChoice, we are driven by our Purpose to Enrich Lives, therefore the future of the African continent, its natural resources, and our communities require that we work together with our partners to create a world where everyone thrives for generations to come.  It is for this reason that we are not only urging African innovators to enter the environmental prize, but we have also partnered with The Earthshot Prize to help accelerate and spotlight the ingenuity and ambition of innovators, activists and scientists across Africa who are working to address the climate crisis on the African continent and around the world.

Enter at (https://bit.ly/3XqFY2U) by 27 January 2023. For more information please visit (https://bit.ly/3GzrUNC). 

 

Africa Climate Change Fund launches Women and Youth Entrepreneurship Project

ABIDJAN, Ivory Coast, December 6, 2022/ — The Africa Climate Change Fund (ACCF) Secretariat has launched a scheme to support mechanisms for climate adaptation finance for women entrepreneurs and youth.

The scheme, “YouthADAPT: Empowering Women and Youth for Entrepreneurship and Job Creation in Climate Adaptation and Resilience,” will develop innovative, transformative climate-resilient bankable projects aligned with African countries’ Nationally Determined Contributions.

YouthADAPT is a flagship program under the Africa Adaptation Acceleration Program (AAAP) (http://www.AfDB.org/AAAP), which is unlocking the untapped potential of youth in Africa to drive resilience and green enterprise.

The virtual launch followed the approval of a $1 million grant funding by the ACCF’s development partners for the project. The event rallied together stakeholders, including the project team, quality control, adaptation, gender, and communication experts, and climate change and green growth experts to share experiences.

ACCF Coordinator Rita Effah, and the Portfolio Officer, Lucy Debrion, explained the Fund’s operational guidelines on Bank-implemented projects.

AAAP Coordinator and Principal Climate Change Officer Edith Ofwona Adera said, “African youth are leading the way, not in talk, but in concrete climate action; as agents of change, innovators, and entrepreneurs.”

She said the scheme would support women-led local enterprises promoting adaptation solutions to create additional jobs.

Adera thanked the ACCF for collaborating on the projects. Adera also commended the Fund for its role in facilitating the production of proposals. “That makes our work easier,” she added.

Following the launch, the AAAP secretariat will regularly engage with the ACCF Secretariat on significant project milestones to ensure that the objective is fully accomplished.

Since 2017, the ACCF Governing Committees have approved 26 projects estimated at $15.87 million.

The AAAP will implement the project. For more information on ACCF and AAAP, please visit http://ACCF.AfDB.org  and www.AfDB.org/AAAP

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

SOURCE
African Development Bank Group (AfDB)

Energy Transition in Africa Requires Energy Banks

JOHANNESBURG, South Africa, April 13, 2022/ — Africa s still grappling with the crisis of energy poverty—a problem that is only becoming more acute as a result of a decline in investment and a lack of adequate infrastructure. It is possible that renewable energy sources, despite their widespread availability across the continent, will fall short of meeting Africa’s electricity demands (https://bit.ly/38OB1wL) in the short to medium term, leading to either the continued use of oil and gas or the emergence of even more people living in energy poverty (https://bit.ly/3rq8sft). Numerous stakeholders have advocated for the continued presence of oil and gas, at least in the medium term, so that the continent can transition gradually while simultaneously lifting millions of people out of poverty.

Energy sources based on fossil fuels (https://bit.ly/3riarCD) have long dominated the energy sector, particularly in Africa, where air pollution is exacerbated by the burning of bushes for firewood and other such activities, among other things. Environmental organizations, financial institutions, and governments from across Europe and North America have insisted that developing countries, including those in Africa, make an immediate transition (https://bit.ly/3JwzgkB) away from fossil fuel production and usage in order to avoid catastrophic climate change. Renewable energy sources such as solar, wind, and hydrogen are being promoted as a means of achieving this transition (https://bit.ly/3jwSiMT). In addition to this pressure, global governments have committed to incorporating more renewable energy sources into the energy system in accordance with the Paris Agreement, which was signed at the United Nations Climate Conference in 2015. While the energy transition is a global phenomenon, the reality is that its implementation will differ in form and timing from one region to another, as well as from developed countries to developing countries, depending on the circumstances.

In order for Africa to achieve (https://bit.ly/3KC8gkX) its goal of industrializing the continent, it is critical that it has access to reliable, affordable, and sustainable modern energy services as well as adequate financing. The African Energy Chamber (https://bit.ly/3KDqNgR) is calling on African governments and the private sector to establish energy banks that will be dedicated to financing African energy projects. With this initiative, it is hoped to establish funding sources for all types of African energy, from oil and gas exploration to solar and hydrogen operations, that will not be reliant on foreign assistance. There will be no more begging for aid that will only be granted if we completely abandon our use of fossil fuels.

Following the United Nations (UN) Climate Change Conference (COP 26) in Glasgow in 2021, countries around the world came up with ambitious targets to help them make the transition to a low-carbon economy. Securing adequate financing for renewable energy projects is critical to the success of this process, and major banks play an important role in this process. When it comes to lending to fossil-fuel projects, lenders have become increasingly hesitant to do so, while showing an increased appetite for lending to renewable-energy projects. Multiple banks have reaffirmed their commitment to financing (https://bit.ly/3EcX63Q) the continent’s energy transition, which is a significant development (https://bit.ly/3KGcTdB) in the African energy landscape.

AFRICAN BANKS (https://bit.ly/3uxYmet) FINANCING THE ENERGY TRANSITION

The African Development Bank (AfDB), a multilateral financial institution that lends money to African governments and private companies, has prioritized green growth in its portfolio, recognizing the negative impact that climate change is having on the continent. By incorporating a climate-informed perspective into all of the financial institution’s investments, the bank seeks to ensure that African countries and stakeholders have access to adequate financing as they transition to a clean energy economy. The African Development Bank’s Climate Change and Green Growth Department is organized around two main goals: the achievement of inclusive and sustainable growth, and the financing of climate change projects. These goals are aligned with the bank’s corporate strategy for the period 2013-2022. Facilities such as the African Development Bank’s Green Bond program have already helped to accelerate the development of green projects across the continent. Thus, the bank has established itself as an important facilitator of Africa’s energy transition.

The Sustainable Energy Fund for Africa (SEFA) (https://bit.ly/37JjCoC), which is managed by the African Development Bank, has approved a grant of $1 million to assist Botswana (https://bit.ly/37EgytX) in its transition to clean energy. In order to close critical gaps in policy, regulatory, and legal frameworks that were identified at the Africa Energy Market Place (https://bit.ly/3vdRRga), the technical assistance project assists the Government of Botswana in closing those gaps. These includes the introduction of least-cost planning, the reduction of negative environmental impacts, and the encouragement of increased private sector participation in renewable energy generation investments, among other things. In addition, the African Development Bank (AFDB) board of directors has approved the Leveraging Energy Access Finance Framework (LEAF), under which the bank will commit up to $164 million to promote decentralised renewable energy projects in six African countries, as reported by the Financial Times. With an initial investment of $800 million, the LEAF (https://bit.ly/3vgaUpT) program aims to encourage commercial and local currency investments that will allow decentralised renewable energy companies in Ghana, Guinea, Ethiopia, Kenya, Nigeria, and Tunisia to scale up their operations. Six million people are expected to gain access to clean energy as a result of the financing of 18 decentralised renewable energy projects under the program. In total, it is anticipated that the systems will save 28.8 million tonnes of CO2 emissions over their expected lifetime of use.

ABSA BANK LTD is a private limited company and, in collaboration with the International Finance Corporation (IFC) of the World Bank, has received a loan in the amount of $150 million to support the bank’s progressive strategy to grow its climate finance business. Through Absa, the loan will also help South Africa achieve its greenhouse gas (GHG) reduction targets, which will benefit the entire world. Absa Bank (https://bit.ly/3LVm3mI) is currently the market leader in the financing of South Africa’s Renewable Independent Power Producer Program, having structured financing for 46% of the projects that have been completed under the program to date.

STANDARD BANK a major financial institution in Sub-Saharan Africa, Standard Bank is actively involved in the financing of projects (https://bit.ly/3O55Opb) that promote the use of renewable energy sources. South Africa’s first local Tier 2 capital qualifying green bond, issued by the bank to finance renewable energy projects, was recently issued by the bank. The proceeds from the new ten-year bond, which was recently listed on the Johannesburg Stock Exchange (JSE), will be used to fund renewable energy projects in the country. The bond, worth R1.4 billion, is the third to be issued under Standard Bank’s Sustainable Bond Framework, which was established in February of this year.

In order to assist in the funding of renewable energy projects, Standard Bank Group Ltd.(https://bloom.bg/3rm2qww), Africa’s largest lender in terms of assets, plans to raise as much as 300 billion rand ($20 billion) by 2026, while maintaining an open mind to supporting fossil fuels. This commitment (https://bit.ly/3JG7qCi) was made in a statement outlining the company’s climate goals, which stated that the lender would strive to achieve net zero carbon emissions in its own operations and from its portfolio of financed emissions by 2050, in accordance with the Paris Agreement. The bank aims to achieve the following:

  • Reduce group advances to upstream oil by 5% by 2030;
  • limit exposure to thermal coal to 0.7% of group loans and advances in 2021 and 0.5% by 2030;
  • finance new coal mines only in the southern African region and only when there is an overall positive environmental impact;
  • reduce exposure to gas by 2045;
  • refrain from funding the deforestation of natural forests and indigenous trees.

NEDBANK:  The International Finance Corporation (IFC) (https://bit.ly/3E7oz6X) has formed a partnership with South Africa’s Nedbank Group for the purpose of financing key renewable energy projects in the country. The strategic partnership was established in order to enable the country to make the transition to cleaner forms of energy, reduce greenhouse gas emissions, and create jobs in the renewable energy sector. The International Finance Corporation (IFC) is providing Nedbank (https://bit.ly/3KCiz8w) with a loan of up to $200 million to help the bank achieve its green finance operations expansion goals and grow its climate portfolio. This initiative is part of the International Finance Corporation’s broader goal of developing South Africa’s climate finance market through the financing of renewable energy projects. The South African government aims to reduce greenhouse gas (https://bit.ly/3KFWmqj) emissions by up to 42% by 2025 and to diversify its energy mix in order to reduce its reliance on coal even further by 2050, according to the World Resources Institute.

FIRSTRAND MERCHANT BANK: Global investors are putting pressure on South Africa’s top lenders and companies such as SASOL to reduce the carbon intensity of their portfolios. As a result, Nigel Beck, head of sustainable finance and environmental, social, and governance (ESG) advisory at First Rand Merchant Bank (https://bit.ly/3KQnTFi), has stated that the sector must respond and transform in line with forward-looking global energy trends. With a goal of reaching net zero emissions by 2050, FirstRand Merchant Bank has committed to achieving this goal by 2022. This goal includes both operational emissions and the financing of strategic energy projects (https://bit.ly/3JDFGhV).

Distributed by APO Group on behalf of Centurion Law Group.

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Feel free to contact the Energy Transition Centre today with questions.
Julius Moerder
Head of Energy Transition Centre
julius.moerder@centurionlg.com

Oneyka Ojogbo
Head of Energy Transition Centre<
Nigeria & West Africa<
oneyka.ojogbo@centurionlg.com

Leon van Der Merwe
Head of Energy Transition Centre South Africa
leon.vdmerwe@centurionlg.com

SOURCE
Centurion Law Group

Response To Energy Price Spike, Gets EU Leaders Debating

EU leaders on Thursday struggled to agree a common response to soaring energy prices, which have exposed familiar rifts over the bloc’s climate change goals and divided countries on whether the price crunch warrants an overhaul of EU energy market rules.

The European Commission last week published a “toolbox” outlining the national measures governments can take and said Brussels would look into longer-term options to address price shocks.

EU leaders debated those options on Thursday, but halted the talks after a few hours and planned to return to the issue after a debate on the deepening row between the EU and Poland over the rule of law.

Countries are split over how the EU should tackle soaring energy prices, as their citizens face higher bills with winter approaching.

Most EU countries have already drawn up emergency action plans to shield consumers, including energy tax cuts and subsidies for poorer households.

A draft of their summit conclusions, seen by Reuters, invites countries to urgently use the toolbox “to provide short-term relief to the most vulnerable consumers and to support European companies”.

Longer-term measures, however, are more contentious. One EU diplomat said a sticking point in Thursday’s talks was some countries’ demands that the EU overhaul its carbon market.

Poland and the Czech Republic have asked the EU to limit financial speculators’ participation in the carbon market, which they say said has helped push CO2 prices to record highs.

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Brussels has previously resisted such calls, warning that intervening in the scheme would erode trust in the market. Countries including Germany and the Netherlands have warned against intervention, while other states are wary of overhauling regulations in response to a short-term crisis.

European gas prices have hit record highs as tight supply has collided with economies emerging from the COVID-19 pandemic, amid surging CO2 prices and lower-than-expected gas deliveries from Russia. The Commission said gas prices were expected to stabilise at a lower level by April.

Spain, Italy and Greece are also pushing for an EU response to the price spike, including by launching joint gas buying among EU countries to form strategic reserves.

The draft conclusions for the summit did not endorse any specific actions, suggesting leaders will pass the issue on to an emergency meeting of EU energy ministers on Oct. 26.

A preparatory note ahead of that meeting, seen by Reuters, said ministers would debate “what further measures at EU and Member State level, including the use of EU financial tools, could be envisaged”.

The price spike has also stoked familiar tensions over the EU’s policies to fight climate change, with Poland calling for Brussels to change or delay some planned green measures.

Hungarian Prime Minister Viktor Orban on Thursday dismissed EU climate policy plans as a “utopian fantasy”. That view is at odds with other countries that say high gas prices should speed up Europe’s shift to renewable energy to reduce countries’ exposure to volatile fossil fuel prices.

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