Africa’s energy transition and recent geopolitical, political and policy turbulences

Recent geopolitical, political, economic and financial developments, including changes and adjustments in climate policies and regulations, in the world’s two largest developed regions, Europe and the United States, could render Africa’s already difficult attempts to achieve a ‘fair’ energy transition even more problematic.

The impact of US policy changes will rapidly be felt as US public aid funding is drastically reduced, and US public funding of international clean energy programmes and initiatives is stopped. In Europe, the European Union continues to state its support of Africa’s clean energy transition. However, important changes in Europe’s financing priorities, especially the urgent need to significantly increase defence spending, will reduce Europe’s public funding available for Africa’s clean energy projects and accelerate the shift in the funding structure of such projects. Private sector investment and lending are expected to take a more important role.

Finally, the climate policy and regulatory changes and adjustments in the US and Europe and the mixed message they send to developing regions could adversely affect Africa’s decarbonisation and methane emission reduction commitments and further slowdown its already complicated energy transition.

Read more here: https://www.oxfordenergy.org/publications/africas-energy-transition-and-recent-geopolitical-political-and-policy-turbulences/