CAPE TOWN, South Africa (PAMACC News) - The green energy sector, water, climate smart food systems and low carbon constructions for human settlements are some of key priority areas for private sector investments that will support South Africa’s climate change outcomes, according to new study released on 10th January 2019 on the sidelines of the Partnership for Action on the Green Economy (PAGE) Ministerial Conference.
The study released by the Southern Africa Climate Finance Partnership (SACFP), with support from the UK Department for International Development (DFID) and the Swiss Agency for Development Cooperation (SDC) further points out that investment in waste recycling and management, where the waste materials are converted into energy such as biogas is also another priority area for investment for positive climate outcomes.
“[This] study is important because it seeks to build on the existing body of knowledge pertaining to the mobilisation of private sector finance for climate change action,” said Mohamed Allie Ebrahim, the lead author of the study on’ the potential private sector investment priorities that support South Africa’s climate change outcomes.’
“Moreover, [the study] provides broad recommendations on how to enhance efforts to mobilise private sector finance at scale through leveraging the concessionality of the Green Climate Fund’s financial instruments within South Africa,” said Ebrahim in a statement.
The importance of private sector funding in achieving national climate change response actions is further recognised in South Africa’s National Climate Change Response Policy (NCCRP).
However, appropriate and innovative climate finance mechanisms are required to catalyse and scale private sector finance for low-carbon climate-resilient development.
The 123 page document points at the use of market aggregator mechanism to create scale, pool risk, reduce costs and improve project viability as one of the selected innovative climate finance mechanisms and/or concepts that can be used.
Another innovative mechanism identified is the use of funding solutions that address the upfront infrastructure finance gap, by introducing credit-worthy third-party owners and or operators of infrastructure who, in turn, enter into long-term contracts with end-users - among many other mechanisms.
It further explored the possibility of establishing a South African Climate Finance Lab, similar to the Brazil Lab or India Lab, which serves as a mechanism for identifying and incubating standalone high-impact, transformative projects.
It called for a sustained capacity building with respect to project development, project finance and project implementation, especially at the sub-national level (municipalities, local project developers and financial institutions), including enabling environment support, policy advocacy and technical assistance including understanding the role of Executing Entities under the Green Climate Fund (GCF).
In South Africa, the energy sector is the single largest contributor to the country’s total greenhouse gas emissions (81.7% in 2012). Despite the significant increase in renewable energy to the national energy mix from 2000 to 2012, the overall carbon intensity of the national energy system remained fairly constant.
However, the government has committed to its shared responsibility for responding to climate change, through the ratification of the United Nations Framework Convention on Climate Change (UNFCCC), the Kyoto Protocol and the Paris Agreement.
In terms of South Africa’s Nationally Determined Contributions, South Africa has committed to a GHG emission trajectory that peaks between 2020 and 2025, plateau for approximately a decade (until 2035) and begin declining in absolute terms thereafter.
CAPE TOWN, South Africa (PAMACC News) - The green energy sector, water, climate smart food systems and low carbon constructions for human settlements are some of key priority areas for private sector investments that will support South Africa’s climate change outcomes, according to new study released on 10th January 2019 on the sidelines of the Partnership for Action on the Green Economy (PAGE) Ministerial Conference.
The study released by the Southern Africa Climate Finance Partnership (SACFP), with support from the UK Department for International Development (DFID) and the Swiss Agency for Development Cooperation (SDC) further points out that investment in waste recycling and management, where the waste materials are converted into energy such as biogas is also another priority area for investment for positive climate outcomes.
“[This] study is important because it seeks to build on the existing body of knowledge pertaining to the mobilisation of private sector finance for climate change action,” said Mohamed Allie Ebrahim, the lead author of the study on’ the potential private sector investment priorities that support South Africa’s climate change outcomes.’
“Moreover, [the study] provides broad recommendations on how to enhance efforts to mobilise private sector finance at scale through leveraging the concessionality of the Green Climate Fund’s financial instruments within South Africa,” said Ebrahim in a statement.
The importance of private sector funding in achieving national climate change response actions is further recognised in South Africa’s National Climate Change Response Policy (NCCRP).
However, appropriate and innovative climate finance mechanisms are required to catalyse and scale private sector finance for low-carbon climate-resilient development.
The 123 page document points at the use of market aggregator mechanism to create scale, pool risk, reduce costs and improve project viability as one of the selected innovative climate finance mechanisms and/or concepts that can be used.
Another innovative mechanism identified is the use of funding solutions that address the upfront infrastructure finance gap, by introducing credit-worthy third-party owners and or operators of infrastructure who, in turn, enter into long-term contracts with end-users - among many other mechanisms.
It further explored the possibility of establishing a South African Climate Finance Lab, similar to the Brazil Lab or India Lab, which serves as a mechanism for identifying and incubating standalone high-impact, transformative projects.
It called for a sustained capacity building with respect to project development, project finance and project implementation, especially at the sub-national level (municipalities, local project developers and financial institutions), including enabling environment support, policy advocacy and technical assistance including understanding the role of Executing Entities under the Green Climate Fund (GCF).
In South Africa, the energy sector is the single largest contributor to the country’s total greenhouse gas emissions (81.7% in 2012). Despite the significant increase in renewable energy to the national energy mix from 2000 to 2012, the overall carbon intensity of the national energy system remained fairly constant.
However, the government has committed to its shared responsibility for responding to climate change, through the ratification of the United Nations Framework Convention on Climate Change (UNFCCC), the Kyoto Protocol and the Paris Agreement.
In terms of South Africa’s Nationally Determined Contributions, South Africa has committed to a GHG emission trajectory that peaks between 2020 and 2025, plateau for approximately a decade (until 2035) and begin declining in absolute terms thereafter.
ABIDJAN, Côte d’Ivoire (PAMACC News) - Solar projects stretching across the Sahel region are expected to connect 250m people with electricity by tapping into the region’s abundant solar resource.
The details of the “Desert to Power Initiative” have been outlined as part of the Paris Agreement climate change talks at COP24 in Katowice, Poland this week.
Energy poverty in Africa is estimated to cost the continent 2-4 % GDP annually, according to the African Development Bank (AfDB), which is leading the project.
The Initiative aims to develop and provide 10 GW of solar energy by 2025 and supply 250 million people with green electricity including in some of the world’s poorest countries. At least 90 million people will be connected to electricity for the first time, lifting them out of energy poverty.
Currently, 64% of the Sahel’s population - covering Senegal, Nigeria, Mauritania, Mali, Burkina Faso, Niger, Chad, Sudan, and Eritrea - lives without electricity, a major barrier to development, with consequences for education, health and business.
By harnessing the exceptional solar resource in the region, AfDB and its partners hope to transform the region.
Magdalena J. Seol in the AfDB’s Desert to Power Initiative said,“Energy is the foundation of human living - our entire system depends on it. For Africa right now, providing and securing sustainable energy is in the backbone of its economic growth.” adding that lack of energy remains as a significant impediment to Africa’s economic and social development,”
The project will provide many benefits to local people, said Ms Seol: It will improve the affordability of electricity for low income households and enable people to transition away from unsafe and hazardous energy sources, such as kerosene, which carry health risks.
Construction of the project will also create jobs and help attract private sector involvement in renewable energy in the region.
Many women-led businesses currently face bigger barriers than men-led enterprises to accessing grid electricity - so the project has the potential to increase female participation in economic activities and decision-making processes.
The project has been launched in collaboration with the Green Climate Fund, a global pot of money created by the 194 countries who are party to the UN Framework Convention on Climate Change (UNFCCC), to support developing countries adapt to and mitigate climate change. The program is designed to combine private sector capital with blended finance.
“If you look at the countries that this initiative supports, they’re the ones who are very much affected by the climate change and carbon emissions from other parts of the world,” said Ms Seol.
“Given this, the investments will have a greater effect in these regions, which have a greater demand and market opportunity in the energy sector.”
“Women are usually disproportionately negatively affected by energy access issues. Providing a secure and sustainable electricity creates positive impact on gender issue as well.”
The African continent holds 15% of the world’s population, yet is poised to shoulder nearly 50% of the estimated global climate change adaptation costs, according to the Bank.
These costs are expected to cut across health, water supply, agriculture, and forestry, despite the continent’s minimal contribution to global emissions.
However, the International Renewable Energy Agency estimates that Africa’s renewable energy potential could put it at the forefront of green energy production globally.
It is estimated to have an almost unlimited potential of solar capacity (10 TW), abundant hydro (350 GW), wind (110 GW), and geothermal energy sources (15 GW) - and a potential overall renewable energy capacity of 310 GW by 2030.
Other renewables projects in Africa include The Ouarzazate solar complex in Morocco, which is one of the largest concentrated solar plants in the world.
It has produced over 814 GWh of clean energy since 2016 and last year, the solar plant prevented 217,000 tons of CO2 being emitted. Until recently, Morocco sourced 95% of its energy needs from external sources
In South Africa, the Bank and its partner, the Climate Investment Fund, have helped fund the Sere Wind Farm - 46 turbines supplying 100 MW to the national power grid and expected to save 6 million tonnes of greenhouse gases over its 20 year expected life span. It is supplying 124,000 homes.
COP24 is the 24th conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC). This year countries are preparing to implement the Paris Agreement, which aims to limit the world’s global warming to no more than 2C.
ABIDJAN, Côte d’Ivoire (PAMACC News) - Solar projects stretching across the Sahel region are expected to connect 250m people with electricity by tapping into the region’s abundant solar resource.
The details of the “Desert to Power Initiative” have been outlined as part of the Paris Agreement climate change talks at COP24 in Katowice, Poland this week.
Energy poverty in Africa is estimated to cost the continent 2-4 % GDP annually, according to the African Development Bank (AfDB), which is leading the project.
The Initiative aims to develop and provide 10 GW of solar energy by 2025 and supply 250 million people with green electricity including in some of the world’s poorest countries. At least 90 million people will be connected to electricity for the first time, lifting them out of energy poverty.
Currently, 64% of the Sahel’s population - covering Senegal, Nigeria, Mauritania, Mali, Burkina Faso, Niger, Chad, Sudan, and Eritrea - lives without electricity, a major barrier to development, with consequences for education, health and business.
By harnessing the exceptional solar resource in the region, AfDB and its partners hope to transform the region.
Magdalena J. Seol in the AfDB’s Desert to Power Initiative said,“Energy is the foundation of human living - our entire system depends on it. For Africa right now, providing and securing sustainable energy is in the backbone of its economic growth.” adding that lack of energy remains as a significant impediment to Africa’s economic and social development,”
The project will provide many benefits to local people, said Ms Seol: It will improve the affordability of electricity for low income households and enable people to transition away from unsafe and hazardous energy sources, such as kerosene, which carry health risks.
Construction of the project will also create jobs and help attract private sector involvement in renewable energy in the region.
Many women-led businesses currently face bigger barriers than men-led enterprises to accessing grid electricity - so the project has the potential to increase female participation in economic activities and decision-making processes.
The project has been launched in collaboration with the Green Climate Fund, a global pot of money created by the 194 countries who are party to the UN Framework Convention on Climate Change (UNFCCC), to support developing countries adapt to and mitigate climate change. The program is designed to combine private sector capital with blended finance.
“If you look at the countries that this initiative supports, they’re the ones who are very much affected by the climate change and carbon emissions from other parts of the world,” said Ms Seol.
“Given this, the investments will have a greater effect in these regions, which have a greater demand and market opportunity in the energy sector.”
“Women are usually disproportionately negatively affected by energy access issues. Providing a secure and sustainable electricity creates positive impact on gender issue as well.”
The African continent holds 15% of the world’s population, yet is poised to shoulder nearly 50% of the estimated global climate change adaptation costs, according to the Bank.
These costs are expected to cut across health, water supply, agriculture, and forestry, despite the continent’s minimal contribution to global emissions.
However, the International Renewable Energy Agency estimates that Africa’s renewable energy potential could put it at the forefront of green energy production globally.
It is estimated to have an almost unlimited potential of solar capacity (10 TW), abundant hydro (350 GW), wind (110 GW), and geothermal energy sources (15 GW) - and a potential overall renewable energy capacity of 310 GW by 2030.
Other renewables projects in Africa include The Ouarzazate solar complex in Morocco, which is one of the largest concentrated solar plants in the world.
It has produced over 814 GWh of clean energy since 2016 and last year, the solar plant prevented 217,000 tons of CO2 being emitted. Until recently, Morocco sourced 95% of its energy needs from external sources
In South Africa, the Bank and its partner, the Climate Investment Fund, have helped fund the Sere Wind Farm - 46 turbines supplying 100 MW to the national power grid and expected to save 6 million tonnes of greenhouse gases over its 20 year expected life span. It is supplying 124,000 homes.
COP24 is the 24th conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC). This year countries are preparing to implement the Paris Agreement, which aims to limit the world’s global warming to no more than 2C.
