Research: Financing extraction of natural gas in Africa has serious consequences

 

Alliance magazine

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A new report from the African Climate Foundations warns of the consequences of increasing Africa’s natural gas production.

Africa holds significant natural gas resources, and substantial new discoveries have been made in the past decade. Changes in the global market following Russia’s invasion of Ukraine, have led many to look toward Africa as to potentially increase their production of liquified natural gas as global demand skyrockets. However, investment in new gas infrastructure is risky – both for the climate and for African nations.

The African Climate Foundation’s research suggests that investments in gas won’t offer a long-term return on investment as nations move toward renewable energy. Rather than responding to Europe’s short-term needs for gas, African countries would be better investing in renewable energy sources, following the path of the EU.

However, the ability of Africa to invest in renewable energy will rely on the availability of climate finance, coupled with support from governments and private investors, all of which need to be dramatically scaled up to ensure large-scale roll out of these technologies. Yet climate funds remain out of reach for African countries, the African Climate Foundation says.

The African Climate Foundation was established in 2020. It is an intermediary funder that supports those working towards climate mitigation in Africa.

Read the full report on africanclimatefoundation.org.


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