…Says Energy Transition Plan Will Create 340,000 Jobs By 2030
Vice President, Yemi Osinbajo, has said that Nigeria is engaging partners to raise the initial $10bn needed for the country’s energy transition programme
The VP said the fund is being sought along the Just Energy Transition Partnership (JETP), jointly with the governments of the United Kingdom, the United States, France, Germany and the European Union at the COP 26 last year.
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The VP made the disclosure at the public launch of the Nigeria Energy Transition Plan which was held on Wednesday.
The plan would showcase Nigeria’s pathway to achieving net-zero emissions by 2060 and leadership role in enabling a just and equitable climate future for the continent.
Osinbajo said during the launch that African countries cannot afford to delay in the transition as global warming may worsen the continent’s current unemployment woes.
The VP lamented that despite the signing of various climate agreements by African countries, the problem of “energy poverty is as important as our climate ambitions.”
Countries like Nigeria are expected to invest $410bn to achieve net zero by 2060, which translates to $10bn per annum.
Osinbajo said, “This plan has the potential to create about 340,000 jobs by 2030 and 840,000 jobs by 2060 and it presents a unique opportunity to deliver a true low carbon and rapid development model of Africa’s largest economy.
“Also the plans highlights the significance scale of resources required to improve development and climate ambitions. Nigeria will need to spend $410bn above business usual spendings to deliver our transition plans by 2060 which translate to about $10bn per year.
“The average $3bn investment in renewable energy recorded for the whole of Africa between the year 2000 and 2020 will certainly not suffice.
“Towards the implementation of the plan, we have the historical energy transition which I have the privilege of chairing, engaging with partners to secure an initial $10bn support package ahead of COP 27 along the line of the South Africa Just Energy Transition which was announced at COP26.”
The VP pointed out that Africa’s current energy demand is huge, adding that future demands would be greater due to expanding population, organizations, and movement into the middle class.
However, he decried that there is injustice in global energy transition which is impacting the continent.
Osinbajo added, “It is clear that the continent must address its energy constraints and would require external support and policy flexibility to deliver these. Unfortunately in the wider response climate crises, we are not seeing careful consideration and acknowledgement of Africa’s aspirations.
“For instance, despite the tremendous energy gaps, global policies are increasingly constraining Africa’s energy technology choices.
“There is a clear need for African nations to engage critically and vocally in conversations about our global climate future. More importantly, we need to take ownership of our transition pathways and design climate strategies that address our growth objectives.”
The VP explained further that the plan was designed to tackle the dual crisis of energy poverty and climate problems and deliver SDGs 7 by 2030 and Net zero by 2060.
“We have anchored the plan on key objectives including lifting a 100 million people out of poverty in a decade, driving economic growth, bringing modern energy services to the population and managing the expected long-term job loss in the energy sector due to global decapitalization in the oil sector,” said the VP.
According to him, the plan adopts gas as a transition fuel.
Osinbajo added, “We are currently implementing power sector initiatives and reforms that are focused on expanding our grid, increasing generation capacity and employing renewable energy to rural and underserved populations.
“Significantly today we are also launching innovative results based finance ground that focuses specifically on electricity access.
“The Universal energy facilities will provide grant payment to enable solar companies to expand their operations to small and medium enterprises across Nigeria, while crowding in additional private capital. Project sponsored by the Universal Energy Facilities will help to grow businesses and create jobs making it a key contributor to our energy transition plan.
“I will like to encourage solar companies in Nigeria to engage with this innovation financing opportunity which has been managed by Sustainable Energy for All (SEForAll).”