A global transformation from a heavily fossil fuel and unsustainable land use dependent economy to a low-carbon economy is expected to require investments of at least US$4–6 trillion a year. Global mitigation investments need to increase by a factor of three to six, and even more for developing countries.
The Lead promoter Energy Hub and Chairman of AOGS Resources Limited, Felix Amieyeofori, a Professor of International Business Management, Policy Analyst on Sustainable Energy and Energy Transition stated this at the Africa Energy Outlook 2023 Webinar organised by AOGS Energy Resources Limited recently.
He maintained that just Energy Transition is a partway for Africa, adding that relevant Actors for a successful Just Energy Transition Seven key actors are critical to a successful implementation of a Just energy transition.
These he listed to include: Trade unions and non-unionized workers, Businesses, Political leaders, State or Regional governments, Administration, Civil society organizations and Energy consumers and the general public.
The Professor stated that the preamble of the Paris Agreement on climate change includes “the imperatives of a just transition of the workforce and the creation of decent work and quality jobs in accordance with nationally defined development priorities” as important principles.
Energy transitions in Africa he said must enable economic, urban, and demographic growth – not just decarbonization. “It must power broad-based economic development and socioeconomic gains; and ensuring climate resilience and adaptation, as the African continent, home to the world’s youngest population is changing rapidly, and faces confluent challenges including population growth, urbanization, energy poverty, economic instability, and the intensifying effects of climate change”, he said.
“In order to mitigating Energy Crisis, International Energy Forum estimates that the world needs $4.9 trillion oil and gas investments by 2030 to prevent major crises due to supply shortfall. This translates to increase in annual spending from $499 billion in 2022 to $640 billion in 2030”, he added.
The massive investment will be needed “to meet market needs and prevent a supply shortfall, even if demand growth slows towards a plateau”.
“The global oil and gas upstream capital expenditure increased by 39% in 2022 to $499 billion, the highest level since 2014 and the largest year-on year gain in history”, he stressed.
The global rig count is up 22% from a year ago but remains 10% below 2019 levels.