Global Sustainable Financing trends currently favor funding for projects delivering low-carbon, cleaner fuels with clear Environmental, Social & Governance (ESG) deliverables for Climate Change. The ARA Executive Secretary, Anibor Kragha, was a panelist on IPIECA’s Sustainable Finance Webinar on July 9 during which he highlighted the need for a targeted, two-step “Sustainable Finance Plan for Africa” because access to clean, affordable fuels will be limited unless financing is secured to produce those fuels and upgrade distribution infrastructure.
First, targeted transition funding should be provided to upgrade African refineries to produce cleaner, less polluting fuels and improve distribution infrastructure. This step will encourage Africa’s industrialization efforts and unlock major socio-economic benefits while ensuring the continent attains current global HSE standards promptly.
Second, funding for de-carbonization projects should then be made available to tackle the Climate Change issues. Successful implementation of UN Climate Change objectives necessitate that the first transition step is executed to ensure distribution infrastructure is in place to propagate adoption of cleaner fuels across Africa.
The ARA is committed to working with all stakeholders to ensure that a “Sustainable Finance Plan for Africa” is implemented to upgrade our continent’s refineries and infrastructure to enable a viable transition to use of cleaner fuels across the continent.
By 2040, Africa’s significant projected population increase will lead to rapid upsurge in urban populations’ energy demands and associated public health concerns. The IEA estimates Africa’s total primary energy demand will grow by about 50% by 2040, with fossils fuels (coal, oil and natural gas) still accounting for over 60% of the primary energy mix.