OvervieAfrica needs $200 billion annually meet its energy, climate goals - NLNGw:
Mr. Philip Mshelbila, the Managing Director of Nigeria Liquefied Natural Gas (LNG) Ltd., has said that Africa’s energy sector needs over 200 billion dollars in annual investments to meet its energy and climate goals.
Mr. Philip Mshelbila, the Managing Director of Nigeria Liquefied Natural Gas (LNG) Ltd., says Africa’s energy sector needs over 200 billion dollars in annual investments to meet its energy and climate goals. While speaking at the networking session reception, hosted by Nigeria LNG in Berlin, Germany, on Monday (Dec. 9, 2024).
Mshelbila stated that the 2024 World LNG Summit and Awards will focus on the theme: “Achieving the balance between energy security and decarbonization,” and investment was necessary to fulfill the increasing energy demands of a youthful and dynamic population with a median age of 20 years, as indicated by Mr. Nnamdi Anowi, General Manager, Production, NLNG, according to a report by The News Agency of Nigeria (NAN).
According to him, in a continent where the average GDP per capita is only a quarter of the global average, the stakes have never been higher.
Mshelbila’s speech further buttresses the Angolan Minister of Mineral Resources, Oil and Gas, Diamantino Azevedo’s statements at the Africa Energy Week 2024 a month ago.
“As a country, Angola is committed to promoting best practices in the reduction of emissions when producing hydrocarbons. I am happy to say that our operatives have reacted positively to this and are reducing emissions step by step,” stated Diamantino Azevedo.
He suggested that policymakers, private sector players, and investors must work together to create enabling frameworks that attract capital.
The NLNG managing director said that there was a need to enhance transparency, improve infrastructure, and develop human capital that could drive innovation and implementation of energy projects.
He said that it was imperative that these goals were aligned, not just for economic growth but for the welfare of the communities and the sustainability of the environment.
“The Global Energy Investment landscape requires a critical balancing act: the need for immediate energy access through fossil fuels, alongside the urgent transition to sustainable energy sources.
“At NLNG, we understand this duality. As one of Africa’s leading energy companies, we are dedicated to sustainably producing liquefied natural gas (LNG), a cleaner energy alternative.
“We see natural gas as not only a vital bridge in the energy transition journey but also a sustainable component of the energy mix, enhancing renewable sources like solar and wind.
“However, investment alone is not sufficient. To truly harness Africa’s energy potential, we must foster a collaborative environment,” Mshelbila said.
Key Insights
According to a study on Africa’s climate finance environment conducted by the Climate Policy Initiative (CPI) and commissioned by FSD Africa, climate finance flows in Africa increased from USD 30 billion in 2019–2020 to USD 44 billion in 2021–2022, a 48% increase. During the same time, private sector financing also increased, reaching USD 8 billion. Despite this expansion, Africa’s climate financing flows fall well short of what is needed to address the continent’s climate adaptation and mitigation demands, which could have disastrous social and economic repercussions.
While global climate finance flows have increased—reaching $850-940 billion in 2021 and a booming green bond market—they fall far short of the trillions required annually to meet global climate goals.
