Global Courant 2023-04-19 12:03:19
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Africa is mobilizing capital to improve access to clean cooking with a series of new deals aimed at financing energy transition projects across the continent.
The African Guarantee Fund (AGF) and the Clean Cooking Alliance (CCA) recently announced a partnership that promotes investment in clean cooking companies and programs.
The two organizations, according to a statement (https://apo-opa.info/43HqviO), will target markets in East, South and West Africa, where they see a strong need and opportunity to expand investments in green projects through clean cooking.
“The partnership allows developers of carbon projects to access pre-financing, giving both customers faster access to clean cooking,” said Feisal Hussain, Senior Director of Innovative Finance at the Clean Cooking Alliance (CCA).
The CCA, a non-profit organization, works with the support of the United Nations Foundation to promote clean cooking technologies in low- and middle-income countries. Feisal Hussain says the CCA will use its network in the cooking and carbon markets in its partnership with the fresh produce industry in Africa. “We aim to lower the barrier to entry for smaller companies in clean cooking, helping to build carbon markets that are accessible to many.”
Clean cooking partnerships address future risks
The International Energy Agency (IEA) estimates that 970 million Africans do not have access to clean cooking equipment. And recent spikes in the price of cooking gas have pushed millions back to more polluting but cheaper alternatives.
According to the United Nations Framework Convention on Climate Change (UNFCCC), 1.67 billion Africans will depend on wood and charcoal for cooking by 2050 if nothing is done to provide cleaner cooking alternatives.
This has serious consequences for the climate, for the preservation of African forests and, above all, for health. According to 2022 data from the World Health Organization (WHO), 3.2 million people die prematurely every year from diseases related to household air pollution. No, thanks to the incomplete combustion of solid fuels and kerosene used for cooking. But partnerships like the one between AGF and CCA can help turn the dangerous tide.
“Our partnership with the Clean Cooking Alliance is aimed at financial institutions to enable them to grow their clean energy portfolios by developing innovative financial solutions that promote clean cooking and the use of clean fuels,” said Jules Ngankam, CEO from AGF Group.
AGF’s green guarantee facility and technical assistance will address the capacity building gaps and risks associated with lending to green SMEs across Africa, according to Jules Ngankam.
“It will also prepare these SMEs to become credit and investment ready so they can play their full part in promoting sustainability and growing Africa’s green economy.”
More partnerships for improved access to clean cooking
Earlier this month in Vienna, the OPEC Fund for International Development (the OPEC Fund) and the United Nations Industrial Development Organization (UNIDO) deepened their cooperation to advance the clean energy transition (https://apo-opa.info/41DNPft) in Africa. They signed a $1.5 million grant agreement for technical assistance to support the National Clean Cooking Transition Program in Madagascar.
The OPEC Fund grant will fund detailed studies and pilot projects as part of Madagascar’s clean cooking transition program. The OPEC fund finances the program with a loan of USD 35 million. UNIDO and project partners will also develop a framework to track development results.
“We are very excited to expand our partnership with UNIDO and support our flagship clean cooking program in Madagascar with UNIDO’s extensive technical and advisory expertise, which is critical to effective implementation,” said OPEC Fund Director-General Dr. . Abdulhamid Alkhalifa.
UNIDO is working with the OPEC fund to expand the use of clean fuels and technologies to improve the health and living conditions of communities in Madagascar, UNIDO Director General Gerd Müller said. “This partnership will make a difference as we plan to roll out clean cooking solutions to 500,000 households in five cities across the country.”
Madagascar is not alone
In Nigeria, a new joint venture agreement aims to invest in a range of carbon avoidance and removal projects as part of efforts to support the energy transition plan in Africa’s most populous country.
The Nigeria Sovereign Investment Authority and Vitol, a global energy and resources company, completed the Carbon Vista JV (https://apo-opa.info/41GnDRC). Both parties have initially earmarked $50 million for the new venture.
The joint venture’s first investment will be in a household energy efficiency program. The program will initially deploy up to 200,000 devices each for clean cooking and water filtration.
“For countries like ours that are rich in fossil fuels, we are also in a situation where we are energy poor,” notes Vice President Yemi Osinbajo. The Nigerian Vice President says the energy transition remains difficult for gas and fossil fuel rich countries.
That said, Yemi Osinbajo believes clean energy holds great promise for the continent. “I believe Africa can become the first truly green civilization to use renewable fuel for a transformative economic journey.”
Distributed by APO Group on behalf of Green Energy Africa Summit.
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