The Eastern and Southern Africa region is grappling with a significant energy crisis, as approximately 365 million people lack access to electricity, accounting for more than half of the global total of 675 million. This energy deficiency not only hinders socio-economic development but also deepens the digital divide, particularly in an era marked by rapid advancements in artificial intelligence and big data.
Inspite of these challenges, new opportunities are emerging. The “Accelerating Sustainable and Clean Energy Access Transformation” (ASCENT) initiative, a partnership between the Common Market for Eastern and Southern Africa (COMESA) and the World Bank, aims to transform energy access by introducing 100 million new electricity connections across over 20 countries by 2030.
A vital aspect of this initiative is the Regional Energy Access Acceleration Platform, which seeks to leverage climate market potential through innovative digital monitoring and reporting systems.
Speaking when he addressed delegates during a High-Level Panel discussion in Berlin Germany on 10th September 2024, COMESA’s Assistant Secretary General in Charge of Programmes (ASGP), Amb. Dr. Mohamed Kadah emphasized on the financial barriers that hinder carbon project development in the region.
“The upfront costs can range from $200,000 to $1 million, making it difficult for small and medium-sized projects to secure the necessary funding,” he said.
High level panelists from different sectors and different perspectives discussed their experience, plans and opportunities to leverage carbon markets to accelerate needed sectoral transitions and transformations to be aligned with the goals of the Paris Agreement and countries’ NDCs, while also helping achieve economic and social development objectives.
They included Mr Axel van Trotsenburg, Senior Managing Director at the World Bank , H.E. Christopher Coye, Minister of State, Ministry of Finance, Economic Development and Investment Nertherlands ,Ms Damilola Ogunbiyi Special Representative of the UN Secretary-General, Mr Thomas Birr Chief Strategy & Innovation Officer from E.ON SE. an international energy company and Dr. Kadah.
The COMESA ASGP called for enhanced access to financial resources, highlighting the critical need for support systems that enable these projects to thrive including the private sector.
He highlighted the importance of establishing robust methodologies, institutions and regulations to facilitate the successful development of carbon projects adding that there was a need for effective registries for carbon credit measurement and verification.
Dr Kadah stated that while the challenges of energy access and sustainable development in Eastern and Southern Africa are formidable, initiatives like ASCENT present a promising pathway toward innovation and structural transformation.
The theme of the panel discussion was “Unlocking Potential: Carbon Markets as a Catalyst for low Carbon Transition and Sectoral Transformation”.