How under-investment in clean energy will hit the poor hardest

Finance into renewable energy is falling short of the 2030 targets set by the sustainable development goals, with under-investment in clean energy posing a significant risk to millions of people, especially those left behind in the energy transition. In a recent interview with CNBC Africa, Damilola Ogunbiyi, the UN Special Representative for Sustainable Energy, shared insights from new research conducted by Sustainable Energy for All. Ogunbiyi highlighted the concerning trend of investments favoring fossil fuels over renewable energy, leading to a lack of progress in the clean energy sector. Despite the availability of funds, investments are often directed towards fossil-based solutions due to perceived ease and speed of implementation. However, Ogunbiyi emphasized the economic benefits of investing in clean energy, citing examples from Africa where such investments have led to job creation and GDP growth. The Sustainable Energy for All research, conducted over a six-year period, revealed a recent increase in fossil fuel investments, overshadowing the urgent need for investment in all forms of energy. In Africa, there remains a significant gap between the required annual investment of $29 billion and the actual $8.5 billion allocated to the energy sector, with only $3 billion dedicated to clean energy. The interview also touched upon the impact of COVID-19 on energy investments, highlighting the need for countries to prioritize clean energy in their recovery plans to address economic downturns. In response to the under-investment in clean energy, the UN is taking proactive steps to address the issue. Ogunbiyi mentioned the upcoming high-level dialogue on energy in 2021, initiated by the Secretary General, aimed at encouraging countries to enhance their energy ambitions. The UN is also promoting the concept of energy compacts, urging countries to commit to sustainable energy access and transition. Ogunbiyi stressed the importance of universal access to clean energy by 2030 as a crucial component of achieving net-zero carbon emissions by 2050. The reinstatement of the United States to the Paris Agreement under the new administration was highlighted as a positive development that could influence global energy investments. The shift in focus towards climate action and sustainable development by the US administration is expected to have a significant impact on global energy policies. Ogunbiyi emphasized the interconnected nature of energy access and health, particularly in regions like Africa where a lack of electrification poses challenges in healthcare delivery, such as vaccine distribution. Addressing the specific challenges faced by African countries, Ogunbiyi stressed the need for investments in electrification and clean cooking to improve access to sustainable and reliable energy. With Africa bearing the brunt of climate change impacts and having low electrification rates, targeted investments in renewable energy are crucial. Ogunbiyi emphasized the role of clear policies and private sector engagement in driving energy investments in Africa, highlighting the opportunities for economic growth and job creation. As the world grapples with the urgent need for transition to sustainable energy sources, the insights shared by Damilola Ogunbiyi shed light on the critical importance of addressing under-investment in clean energy and ensuring universal energy access to uplift the most vulnerable populations.