To achieve net-zero emissions by 2050, Nigeria and other African countries need to invest an estimated $2.8 trillion in a clean energy mix.
Also, to meet up with the global race, African countries need to reduce their yearly carbon dioxide (CO2) emissions by 1.62m kilotons.
This was revealed in a recent report by multinational professional services company PricewaterhouseCoopers (PwC), at the ongoing 26th United Nations (UN) Climate Change Conference, also known as COP 26, in Glasgow, Scotland.
According to the report, which was made available to Ripples Nigeria on Sunday, investment in low-carbon energy systems in Africa lagged at a global pace.
The ‘PwC Africa Energy Review 2021’, released at the weekend stated that with the acceleration of the global net-zero journey, there is an increasing focus on developing countries and their lack of affordability to meet such net-zero targets.
PwC noted that the fiscal constraints being experienced across Africa, create a challenge for the continent to move with pace on its net-zero journey.
According to the review, despite global climate finance commitments from developed economies aimed at $100 billion yearly, the allocation to Africa falls significantly short of what the continent requires to meet global targets.
Proffering solutions, PwC called for private partnerships, public-private partnerships (PPPs), and blended finance and also harped on the need to be deployed together with strong public sector governance and innovative financing instruments to overcome these challenges.
However, the review stated that the majority of Africa’s 54 countries (35) have made commitments towards net-zero emissions, but at an estimated cost of $2.8 trillion just to transition Africa’s energy base by 2050.
It is of note that the required investment levels are unaffordable to most countries hence, the increased call for international financial support from developed nations.
The review outlined a double challenge for Africa on energy transition as well as addressing energy poverty, in line with the Sustainable Development Goals (SDGs).
Remarking on the report, the PWC Africa Oil and Gas Industry Leader, Pedro Omontuemhen, said the energy sector in Africa was diverse and characterised by different demands and needs in each country.
He added that while the energy journey for each country may be different, an overall perspective is needed on common issues in the bid to reduce the energy deficit on the continent.
According to Omontuemhen, while the importance of global decarbonisation and a sustainable planet is foremost, the journey to achieve net-zero is highlighting the risk of further entrenching economic winners and losers.