Africa offers new solutions to avoid risks derailing net-zero energy transition — WEF report
Ahead of its annual meeting taking place in Davos in Switzerland, the World Economic Forum (WEF) says that short-term fixes to the energy crisis including subsidies and coal consumption could imperil the transition to net-zero, while proposing several solutions that have a special resonance in the context of some African countries, such as Senegal and Mozambique.
The WEF says the global reaction to the energy crisis has been counter-productive in the context of the race to net zero, and new immediate actions are needed to stick to the energy transition. Instead of short-term fixes, the report proposes 10 actions to align immediate responses with long-term goals of a just energy transition. The proposed solutions are organized around four themes: supply reinforcements, demand management, fiscal measures and investments, and coordination and long-term strategy. Building on its Energy Transition Index 2022 published in May last year, the WEF argues that countries worldwide should prioritize renewable energy investments, plug methane leaks, maximize electrification, drive consumption efficiencies, and leverage the excess profits made by energy companies in 2022 – estimated at $4 trillion.
Several of these solutions are linked to some African countries, many of whom are set to become major exporters of natural gas. For example, Senegal and Mozambique, which are currently developing their industries, are advised to address methane leakage and non-essential flaring from gas production and infrastructure, which could be highly beneficial. “If potential gas exporters to the EU implemented measures to reduce gas flaring and methane leaks, it could save the equivalent of one-third of total Russian gas exports to the EU in 2021,” says the WEF report. It also argues that a lack of diversification in energy supplies is a barrier to the energy transition. Sub-Saharan Africa is currently on the WEF’s red list for the diversification of its domestic energy mix and energy import partners. 26 countries in SSA are heavily reliant on just three countries for a majority of their fuel imports.
