Impact of Net-Zero Pledges on African Energy Projects
Net-zero commitments by banks are limiting funding for African energy initiatives while supporting similar projects in wealthier nations. This disparity contributes to energy poverty in Africa, where over 600 million lack electricity access.
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Banks have increasingly adopted net-zero pledges, leading to reduced financing for energy projects in Africa while continuing support for similar initiatives in developed countries. This has been termed 'financial apartheid' by the African Energy Chamber.
The European Parliament's resolution against a Uganda-Tanzania oil export project further exemplifies the pressure on African energy development. With Africa contributing only 4% of global CO₂ emissions, the impact of withholding financing on global climate goals remains questionable.
The lack of electricity affects 600 million people, and 26% of health facilities in sub-Saharan Africa lack power, leading to dire health consequences. The need for infrastructure to distribute LPG from Nigeria’s vast natural gas reserves is hindered by the same funding restrictions.
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