Top Posts
Report: Ukraine built more onshore wind turbines in...
More than 1,500 arrested at Extinction Rebellion protest...
Study shows 30 water treatment works released 11bn...
Study: Over 70% of California beaches could disappear...
Sale of new home policies halts in California...
Study shows one in three GB News presenters...
Reps task FG on implementation of carbon credit
Tories accuse Sunak of breaking pledge after animal...
In ruling siding with Idaho couple, US court...
Research shows Chevron’s carbon offsets may harm
EcoNai Newsroom
  • Newsround
  • Nigeria
  • Africa
  • World
Africa

Study shows Africa gets low investment in renewable energy finance

by admineconai May 12, 2023
written by admineconai May 12, 2023
34

A new report has shown that Africa received only 2% – equivalent to $60 billion – of the $2.8 trillion of renewable energy finance that was invested globally between 2000 and 2020, leading to questions as to how renewables cash can be more equitably distributed.

Published in April by the International Renewable Energy Agency (IRENA) and Climate Policy Initiative (CPI), the report said that in 2022, global investments in energy transition technologies reached $1.3 trillion despite the prevailing macroeconomic, geopolitical, and supply chain challenges.

Titled Global Landscape of Renewable Energy Finance 2023, the report also revealed that the current pace of investment is insufficient to put the world on track towards meeting climate or socioeconomic development goals. It noted that the current pace of investment in renewable energy is insufficient, with a call for annual investments to at least quadruple.

“Keeping the world on track to achieving the energy transition in line with the 1.5°C Scenario laid out in IRENA’s World energy transitions outlook 2022 will require annual investments of USD 5.7 trillion on average between 2021 and 2030, and USD trillion 3.7 between 2031 and 2050,”the report said.

Read also: Wildfire kills 21 in Urals, Siberia

According to the report, Africa continues to receive comparatively low investments despite the continent’s enormous potential and energy needs. Only 15% of global investments went to roughly 70% of the world’s population who live largely in developing and emerging nations. For instance, less than 1.5% of the total amount invested internationally between 2000 and 2020 went to Sub-Saharan Africa.

Furthermore, the report showed that in 2015, the “amount invested in renewable energy per person in Europe and North America (apart from Mexico) was almost 22 times greater than in Sub-Saharan Africa. In 2021, European investment per person was 127 times more than Sub-Saharan Africa and 179 times higher in North America.

It showed that of the USD 2.8 trillion invested in renewable energy globally between 2000 and 2020, only 2% – equivalent to USD 60 billion, excluding large hydropower – went to Africa, despite the continent’s enormous potential and needs.

However, the report also showed that 75% of the investments made between 2010 and 2020 went to just four countries: South Africa, Morocco, Egypt and Kenya. These countries offer relatively favourable risk-return profiles owing to their policy and institutional environment, regulations, access to finance and market characteristics (e.g. size, prospects and stability).

Conside1ring African regions, the report noted North Africa was the second-largest recipient of renewable energy finance investments on the continent during 2000-2020, after South Africa.

“Morocco and Egypt received the majority of funding (47% and 45%, respectively), primarily for solar PV (57%) and onshore wind (22%),”the report showed. “The North African region benefits from greater private sector participation than is seen elsewhere on the continent. In 2020, private actors provided 65% of all renewable energy finance in North Africa, up from only 11% in 2013.”

The report also revealed that the share of global renewable energy finance investments going to Sub-Saharan Africa remains small. The region received less than $41 billion cumulatively during 2000-2020 – that is, less than 1.5% of the amount invested globally during that period.

It also revealed that Investments in the region “dropped considerably in 2021, to one-quarter of what they were in 2020 (from USD 4 billion to less than USD 1 billion), despite the fact that the world emerged from the pandemic supposedly recognising the critical role energy plays in enabling health care, sanitation, telecommunications and resilient livelihoods.

Story was adapted from Gas Outlook.

AfricaFinanceInvestmentRenewable energy
0 comment 0 FacebookTwitterPinterestEmail
admineconai

previous post
Wildfire kills 21 in Urals, Siberia
next post
Albanese govt approves new coalmine since taking power

Related Posts

Adesina says Africa requires $2.7trn to finance climate...

May 23, 2023

AFDB president, Adesina says dearth of climate finance...

May 23, 2023

FAO launches flagship project to boost climate resilience...

April 29, 2023

Scientists say climate change responsible for catastrophic drought...

April 27, 2023

African continent most vulnerable to climate risks –...

April 26, 2023

Guinea-Bissau signs environmental democracy treaty

April 26, 2023

Osinbajo urges African countries to tackle energy poverty

April 25, 2023

AfDB’s 2023 annual meetings to focus on climate...

April 19, 2023

AfDB says Africa is energy poor, needs funds,...

April 18, 2023

AfDB 2023 Annual Meetings to galvanize resource mobilization...

April 14, 2023

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

Social Connect

Facebook Twitter Instagram Pinterest Youtube Snapchat Vimeo

Recent Posts

  • Reps task FG on implementation of carbon credit

    May 26, 2023
  • NESREA, UNEP recycle 300 tonnes of electronic waste

    May 18, 2023
  • Climate change council, NSIA sign MoU on emissions regulations

    May 17, 2023
  • NiMET warns Northern residents to prepare for thunderstorms

    May 12, 2023
  • WMO: Nigeria, others lost $173.2 billion to climate change-related disasters

    May 3, 2023

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

  • Facebook
  • Twitter
  • Instagram
  • Linkedin
  • Bloglovin
  • Vimeo

@2021 - All Right Reserved. Designed and Developed by Eco-Nai+

EcoNai Newsroom
  • Newsround
  • Nigeria
  • Africa
  • World