<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/04/107222994-1681198621846-gettyimages-1242239375-Coastal_Tidal_Flat_Energy_Industry_In_China-820x461.jpeg" alt="" class="wp-image-424173" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/04/107222994-1681198621846-gettyimages-1242239375-Coastal_Tidal_Flat_Energy_Industry_In_China-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/107222994-1681198621846-gettyimages-1242239375-Coastal_Tidal_Flat_Energy_Industry_In_China-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/107222994-1681198621846-gettyimages-1242239375-Coastal_Tidal_Flat_Energy_Industry_In_China-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/107222994-1681198621846-gettyimages-1242239375-Coastal_Tidal_Flat_Energy_Industry_In_China-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/107222994-1681198621846-gettyimages-1242239375-Coastal_Tidal_Flat_Energy_Industry_In_China-1536x863.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/107222994-1681198621846-gettyimages-1242239375-Coastal_Tidal_Flat_Energy_Industry_In_China-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Solar was the fastest-growing source of electricity for the 18th consecutive year, the report said, rising by 24% year-on-year and adding enough power to meet the annual electricity demand of South Africa. Future Publishing | Future Publishing | Getty Images</figcaption></figure>



Record growth in wind and solar last year pushed worldwide electricity generation to its cleanest-ever level, a report found, reflecting a renewable energy boom that researchers say could herald the “beginning of the end of the fossil age.”



The analysis published Wednesday by independent climate think tank Ember found that 12% of the world’s power came from solar and wind in 2022, up from 10% of global electricity generation in 2021.



Solar was the fastest-growing source of electricity for the 18th consecutive year, the report said, rising by 24% year-on-year and adding enough power to meet the annual electricity demand of South Africa.



The report found that the increase in wind generation, which added 17% in 2022, could have powered almost all of the U.K.



“We are entering the clean power era,” said Małgorzata Wiatros-Motyka, senior electricity analyst at Ember and lead author of the research. “The stage is set for wind and solar to achieve a meteoric rise to the top. Clean electricity will reshape the global economy, from transport to industry and beyond.”



Wiatros-Motyka added, “A new era of falling fossil emissions means the coal power phasedown will happen, and the end of gas power growth is now within sight.”



<h2 class="wp-block-heading" id="h-much-more-needs-to-be-done"><a></a>‘Much more needs to be done’</h2>



Researchers said that the analysis — which was based on electricity data from 78 countries last year and represents 93% of global power demand — provides the first accurate picture of the electricity transition in 2022.



It shows that more than 60 countries now generate over 10% of their electricity from wind and solar.



Renewables and nuclear sources were collectively found to have accounted for 39% of global electricity generation in 2022 — in a new record high.



Despite this progress, researchers said that the dramatic build-out of wind and solar was still not fast enough to fulfil all of the world’s increasing electricity needs. Consequently, the report noted that coal and other fossil fuels met the remaining gap, driving up emissions to a new record high.



Coal, the world’s dirtiest fossil fuel, was found to be the single largest source of electricity worldwide last year, producing 36% of global power.



Burning fossil fuels, such as coal, oil and gas, is the chief driver of the climate emergency.



“Much more needs to be done to ensure that developing countries are not left behind and locked into high carbon futures,” said Damilola Ogunbiyi, CEO and special representative of the U.N. Secretary-General for Sustainable Energy for All.



Ogunbiyi said the fact that coal power remained the single largest source of electricity worldwide last year reaffirmed the point that the power sector is off track to meet net-zero targets. “The deployment of wind and solar needs to be massively and urgently accelerated.”



<h2 class="wp-block-heading"><a></a>Have power sector emissions peaked?</h2>



The Ember report said that 2022 may come to mark the peak of electricity emissions and the final year of fossil power growth, with clean power set to meet all demand growth in 2023.



Analysts projected a 0.3% dip in fossil generation this year, with steeper falls expected in subsequent years, as wind and solar deployment accelerate.



The International Energy Agency said last year that the electricity sector needs to move from being the highest-emitting sector to being the first sector to reach net zero by 2040 — if the global economy is to decarbonize by the middle of the century.



For this to happen, analysts at Ember said, wind and solar must account for 41% of the global power mix by 2030 — a sharp rise from the 12% observed in 2022.



Li Shuo, senior policy advisor at Greenpeace East Asia, described China as “the 800-pound gorilla when it comes to the global power sector.”



“This is not only because of China’s sheer scale, but also a concerning trend of its electricity sector development. China has no doubt been leading global renewable energy expansion. But at the same time, the country is accelerating coal project approval,” Li said.



“This won’t carry the country far to truly decarbonize. Rapid power sector reforms are needed to put the country back to the carbon neutrality vision it has set for itself.”

107222994-1681198621846-gettyimages-1242239375-Coastal_Tidal_Flat_Energy_Industry_In_China

‘Entering the clean power era’: Wind and solar generated a record amount of global power in 2022

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/107217548-1680163374068-gettyimages-1249134960-AFP_33BW9AA-820x462.jpeg" alt="" class="wp-image-423948" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/107217548-1680163374068-gettyimages-1249134960-AFP_33BW9AA-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/107217548-1680163374068-gettyimages-1249134960-AFP_33BW9AA-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/107217548-1680163374068-gettyimages-1249134960-AFP_33BW9AA-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/107217548-1680163374068-gettyimages-1249134960-AFP_33BW9AA-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/107217548-1680163374068-gettyimages-1249134960-AFP_33BW9AA.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The EU has pledged to wean itself off Russian fossil fuels by 2027 in response to President Vladimir Putin’s full-scale invasion of Ukraine. Christian Charisius | Afp | Getty Images</figcaption></figure>



The European Union is poised to ramp up its 2030 renewable energy targets, accelerating a shift away from fossil fuels as the bloc seeks to rapidly cut emissions and reduce its dependence on Russia.



Negotiators from the European Council and Parliament on Thursday reached a provisional deal to source 42.5% of the 27-nation bloc’s energy from renewable technologies such as wind and solar by the end of the decade, EU lawmaker Markus Pieper said via Twitter.



Pieper described the agreement as “a good day for Europe’s energy transition.”



The deal is said to include an additional 2.5% “indicative top-up” to allow the bloc to reach a 45% share. It is set to replace the EU’s current renewable energies directive target for a 32% share of renewable energy by 2030, which has been in place since Dec. 2018.



The proposal must now be approved by EU member states’ representatives in the Council and then in Parliament. Such agreements are typically given with minimal changes.



The EU has said it aims to be carbon neutral by 2050. In the medium term, it wants net greenhouse gas emissions to be cut by at least 55% by 2030, which the EU calls its “Fit for 55” plan.



The “Fit for 55” package was first presented in July 2021 and seeks to align the EU’s climate and energy legislative framework with its 2050 climate neutrality objective.



Russia’s full-scale invasion of Ukraine since Feb. 2022 and an ensuing energy crisis have fundamentally changed the region’s energy landscape in recent months. The bloc’s lawmakers have come under pressure to bring the region’s targets in line with this new reality.



The EU has pledged to wean itself off Russian fossil fuels by 2027 in response to President Vladimir Putin’s hostilities in Ukraine.



Research published in late February by independent energy think tank Ember showed that the EU’s projected installation rate of so-called clean energy technologies was on track to outpace expectations of its “Fit for 55” package.



Analysts at Ember warned that the EU was at risk of “killing the momentum” of its energy transition by sticking with a low target.



The burning of fossil fuels such as coal, oil and gas, is the chief driver of the climate crisis.



— CNBC’s Anmar Frangoul contributed to this report.

107217548-1680163374068-gettyimages-1249134960-AFP_33BW9AA

EU agrees to ramp up 2030 renewable energy targets, accelerating shift from fossil fuels

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="556" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/WB77IUC2EFIR7F7P75PCABQ7KM-820x556.jpg" alt="" class="wp-image-423688" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/WB77IUC2EFIR7F7P75PCABQ7KM-820x556.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/WB77IUC2EFIR7F7P75PCABQ7KM-300x204.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/WB77IUC2EFIR7F7P75PCABQ7KM-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/WB77IUC2EFIR7F7P75PCABQ7KM-768x521.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/WB77IUC2EFIR7F7P75PCABQ7KM-1536x1042.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/WB77IUC2EFIR7F7P75PCABQ7KM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Men on motorcycles drive along the street, as rebels in northern Chad are ready to observe a ceasefire and to discuss a &#8220;political settlement&#8221; after the battlefield death of President Idriss Deby last week in N&#8217;djamena, Chad April 25, 2021. REUTERS/Zohra Bensemra</figcaption></figure>



NEW DELHI, March 14&nbsp;&#8211;&nbsp;Lahore in Pakistan jumped more than 10 places to become the city with the worst air in the world in 2022, according to an annual global survey by a Swiss maker of air purifiers.



The report published on Tuesday by IQAir also said that Chad in central Africa had replaced Bangladesh as the country with the most polluted air last year.



IQAir measures air quality levels based on the concentration of lung-damaging airborne particles known as PM2.5. Its annual survey is widely cited by researchers and government organisations.



Lahore&#8217;s air quality worsened to 97.4 micrograms of PM2.5 particles per cubic meter from 86.5 in 2021, making it the most polluted city globally.



Hotan, the only Chinese city in the top 20, followed Lahore with PM2.5 levels of 94.3, an improvement from 101.5 in 2021.



The next two cities in the rankings were Indian: Bhiwadi, on Delhi&#8217;s outskirts had pollution levels at 92.7, and Delhi followed close behind at 92.6.



The World Health Organization (WHO) recommends a maximum PM2.5 concentration of 5 micrograms per cubic meter.



While Chad had an average level of 89.7, Iraq, which had the second most polluted air for a country, averaged 80.1.



Pakistan, which had two of the five cities with the worst air in 2022, stood third in the country-wide ranking at 70.9, followed by Bahrain at 66.6.



Bangladesh&#8217;s air quality improved from 2021, when it was tagged as the country with the worst air. It is ranked fifth in the latest report, with PM2.5 levels coming down to 65.8 from 76.9.



India has has some of the most polluted cities in the world, but ranked eighth in the latest report, with PM2.5 levels at 53.3.



The report said India and Pakistan experienced the worst air quality in the Central and South Asian region, where nearly 60% of the population lives in areas where the concentration of PM2.5 particles is at least seven times higher than WHO&#8217;s recommended levels.



It said one in 10 people globally were living in an area where air pollution poses a threat to health.



The U.S. Pacific territory Guam had cleaner air than any country, with a PM2.5 concentration of 1.3, while Canberra had the cleanest air for a capital city, with 2.8.



The index was prepared using data from more than 30,000 air quality monitors in more than 7,300 locations in 131 countries, territories and regions.



(Reporting by Krishn Kaushik; Editing by Y.P. Rajesh and Bradley Perrett)

Men on motorcycles drive along the street in N’djamena

Lahore is most polluted city, Chad worst among countries – survey

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-475710622-820x547.jpg" alt="" class="wp-image-423332" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-475710622-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-475710622-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-475710622-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-475710622-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-475710622-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-475710622-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A visitor inspects photovoltaic panels operating in the Sishen solar park, operated by Acciona SA, in Kathu, Northern Cape, South Africa, on Tuesday, June 2, 2015. South Africa, which has implemented rolling blackouts this year as electricity demand exceeds supply, is running a five-round program of tenders to tap new sources of energy and encourage more private companies to build power projects. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



PARIS, Feb 24 (Reuters)&nbsp;&#8211;&nbsp;A new investment fund with 87.5 million euros ($92.63 million) will finance solar power production across Africa, with a focus on West and Central Africa, French fund manager RGREEN INVEST and investment adviser ECHOSYS INVEST said on Friday.



The AFRIGREEEN Debt Impact Fund&#8217;s first closing will finance on- and off-grid solar power plants for small- and medium-sized commercial and industrial consumers across the continent, the statement said.



The project aims to provide direct lending and asset-based debt facilities for regional and international developers and African commercial and industrial companies to develop solar infrastructure.



The groups are looking to have a portfolio of twenty to thirty investments, with aim of meeting long-term debt financing needs of between 10 and 15 million euros, with an average of around 5 million euros over eight to ten years, the statement said.



The fund also includes and offer of long-term local currency financing in Ghana and Nigeria with support from the International Development Association&#8217;s Private Sector Window Local Currency Facility.



The Fund&#8217;s will measure impact targets in terms of megawatts (MW) installed, megawtt-hours (MWh) produced, tonnes of CO2 emissions and litres of fuel avoided, and number of companies directly or indirectly accessing new financing channel, it said.



The impact will also be measured by the number of commercial and industrial companies able to upgrade their power generation facilities and enhance their efficiency.



RGREEN INVEST and ECHOSYS INVEST said that the first closing included commitments from the European Investment Bank (EIB) and the International Finance Corporation (IFC).



French banks Societe Generale&nbsp;SOGN.PA&nbsp;and BNP Paribas&nbsp;BNPP.PA&nbsp;completed the first round of funding, the statement said.



The group is aiming to raise a total of 100 million euros from development finance institutions and private investors.



($1 = 0.9446 euros)



(Reporting by Forrest Crellin and Sudip Kar-Gupta. Editing by Jane Merriman)

Acciona SA To Ramp Up South Africa Business After Solar Success

New French fund with 87.5 mln euros targets African solar development

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="514" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/6WXGTODVRVPC7EYY4KN4IK7N5M-820x514.jpg" alt="" class="wp-image-422663" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/6WXGTODVRVPC7EYY4KN4IK7N5M-820x514.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/6WXGTODVRVPC7EYY4KN4IK7N5M-300x188.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/6WXGTODVRVPC7EYY4KN4IK7N5M-144x90.jpg 144w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/6WXGTODVRVPC7EYY4KN4IK7N5M-768x481.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/6WXGTODVRVPC7EYY4KN4IK7N5M-1536x962.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/6WXGTODVRVPC7EYY4KN4IK7N5M-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Eni&#8217;s logo is seen in front of its headquarters in San Donato Milanese, near Milan, Italy, April 27, 2016. REUTERS/Stefano Rellandini/File Photo</figcaption></figure>



MILAN, Jan 24 (Reuters)&nbsp;&#8211;&nbsp;Italy can significantly increase its gas imports from Africa and transfer some of the supply to northern Europe if it boosts its infrastructure in the next few years, the CEO of energy group Eni&nbsp;ENI.MI&nbsp;Claudio Descalzi told several Italian papers.



Speaking&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3483RO&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">from Algiers where</a>&nbsp;he travelled with Italy&#8217;s Prime Minister Giorgia Meloni, Descalzi said that Rome could already count on many connections with Africa including the TransMed pipeline linking Algeria to Sicily.



&#8220;We are the only ones to have a connection with Algeria&#8230; which has a capacity of about 36 billion cubic metres (bcm) of gas and is still under-utilised. There are still more than 10 bcm that can reach Italy,&#8221; Descalzi told Italian daily Il Messaggero.



Algeria last year emerged as Italy&#8217;s biggest gas supplier, replacing a significant part of the 29 bcm of gas that previously came from Russia.



In addition to TransMed, Rome could also count on a pipeline coming from Libya and imports of liquefied natural gas (LNG) from Egypt, Angola, Congo Republic and Mozambique.



&#8220;We have a connection with Libya that is now worth about 12-14 billion cubic metres in terms of capacity, which can go up with adequate compression additions of several billion,&#8221; Descalzi told the paper.



Italy is also working at the option of doubling to 20 bcm the capacity of the Trans Adriatic Pipeline (TAP) that brings Azeri gas to Apulia in the southeast of the country.



Rome sees a role as a hub for supplies between Africa and northern Europe in the coming years to help offset the loss of imports from Russia.



&#8220;Our goal is to have an oversupply of gas in order to be able to bring energy to Northern Europe,&#8221; the Eni CEO said, adding that Italy needed both to expand its domestic gas network and also develop energy corridors to Germany, Austria and Switzerland.



In 2021 Italy used around 75 bcm of gas of which 38% came from Russia. It has a plan to completely replace Russian gas by the end of 2024.



Eni and Algeria&#8217;s Sonatrach signed two deals on Monday to reduce carbon emissions and to study joint projects to improve the north African country&#8217;s energy export capacity.



(Reporting by Francesca Landini; Editing by Keith Weir)

FILE PHOTO: Eni’s logo is seen in front of its headquarters in San Donato Milanese

Italy can boost African gas imports, Eni CEO says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/07/responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE-820x547.webp" alt="" class="wp-image-418642" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/07/responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE-820x547.webp 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE-300x200.webp 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE-135x90.webp 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE-768x512.webp 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE-1536x1024.webp 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE.webp 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Africa’s abundant renewable energy sources could make it a global hub for producing low-carbon hydrogen
Image: Unsplash/Anastasia Palagutina</figcaption></figure>



Geneva, Switzerland, 12 January 2023&nbsp;– The current energy crisis is driving inflation, slowing economic growth and creating social turmoil. We cannot afford to compound this crisis by allowing our responses to derail the energy transition. Yet short-term backward steps, such as increasing production of electricity from coal or broad-based consumption subsidies, risk doing just that. &nbsp; A comprehensive reappraisal of energy systems is urgently needed, to prioritize solutions that simultaneously enhance energy security while accelerating the transition towards a just, low-carbon future. A new report,&nbsp;<a href="https://www.weforum.org/whitepapers/securing-the-energy-transition">Securing the Energy Transition</a>,&nbsp;published today by the World Economic Forum, proposes a comprehensive framework that provides a strategic blueprint to make security and resilience the backbone of a transitioing energy system, and 10 actions to align current interventions to address the energy crisis with long term energy transition goals. &nbsp; “The energy crisis has brought energy security to the forefront of political and corporate agendas and prompted the need to develop responses that are adapted to how the energy system has evolved and to where it needs to transition,” said Roberto Bocca, Head of Shaping the Future of Energy, Materials and Infrastructure, World Economic Forum.&nbsp;“What is now a global crisis is a real opportunity to steer a more direct course towards a secure, sustainable and affordable energy future for everyone. This requires radical collaboration and a pragmatic approach to confront the complexities of the energy transition with immediate actions.” &nbsp; &nbsp; Energy systems in transition face opportunities and risks from changing energy markets as well as from increasingly decentralized, digitalized, decarbonized and distributed energy supplies – which necessitates a re-evaluation of energy security in the emerging context. The report proposes a comprehensive framework for a secure energy system to guide countries and policy-makers to plan strategic actions, policies and regulations.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="268" height="272" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/6722ec3b-6ec3-5f1e-f8fc-ea1a4740cfe4.png" alt="" class="wp-image-422334" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/6722ec3b-6ec3-5f1e-f8fc-ea1a4740cfe4.png 268w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/6722ec3b-6ec3-5f1e-f8fc-ea1a4740cfe4-89x90.png 89w" sizes="auto, (max-width: 268px) 100vw, 268px" /></figure>



The near-term consequences of the energy crisis require immediate interventions – but these responses offer a valuable opportunity to accelerate progress towards a future for energy that is both secure and sustainable. “The energy crisis impacts us all and the world cannot afford short-term fixes to the energy crisis which could increase future risks to both the climate and energy equity. The good news is that the crisis offers an opportunity for interventions that balance energy security with an effective low-carbon transition,” said Espen Mehlum, Head of Energy, Material and Infrastructure Program, World Economic Forum The report proposes 10 immediate actions organized under four key themes: Supply reinforcements



<ol class="wp-block-list">
<li>Prioritize supply from renewable energy and constrain fossil fuel reinforcements to committed emission reduction targets&nbsp;– the IEA recommends $5 of investment in renewables for every $1 spent on new fossil fuel production.</li>



<li>Advocate for a diversified energy and trade matrix&nbsp;– an over-concentration on a few energy suppliers was a key contributor to the current energy crisis.</li>



<li>Address methane leakage from hydrocarbon supply chains&nbsp;– the climate benefits of natural gas are no better than coal if more than 3.4% of it escapes before combustion, but some fields have fugitive emission rates of 6% or more.</li>
</ol>



Demand management



<ol class="wp-block-list">
<li>Maximize electrification and energy efficiency to alleviate and decarbonize demand&nbsp;– high gas prices in the near term will enhance the economics of investing in efficiencies and electrifying industries and home heating.</li>



<li>Nudge social behaviour towards responsible energy consumption&nbsp;– globally the top 10% of households consume roughly 20 times more energy than the bottom 10%, but targeted public information and incentives could encourage top-end consumers to become more efficient.</li>
</ol>



Fiscal measures and investments



<ol class="wp-block-list">
<li>Leverage excess profits from energy market to bridge clean energy investment gap&nbsp;– to reach net zero, investments in clean energy needs significant increase. Immediate deployment that can be achieved also through leveraging the extra profits – estimated in 4 trillions- that have been realised in some parts of the energy markets.</li>



<li>Target vulnerable consumers with fiscal measures, without interfering in market signals&nbsp;– government incentives and subsidies to improve energy affordability should avoid distorting market signals, be more targeted, and incentivise continued investment by private sector and efficient consumption.</li>



<li>Provide reliable signals to investors in energy supply and infrastructure&nbsp;– clear guidance is needed from policy-makers on the outlook for gas demand alongside acceleration of low-carbon sources.</li>
</ol>



Co-ordination and long-term strategy



<ol class="wp-block-list">
<li>Co-ordinate with regional peers to maximize efficiency and minimize costs –&nbsp;for example, joint procurement and co-ordinateed new LNG import facility installation &nbsp;to prevent overcapacity and stranded assets.</li>



<li>Revisit energy security strategies considering shifting technology and fuel landscape –&nbsp;this crisis provides an opportunity for countries to comprehensively redesign their approaches to energy security.</li>
</ol>



While governments are primarily responsible for ensuring their countries’ energy security, addressing this crisis in a sustainable manner will require exceptional levels of engagement from and collaboration between governments, companies, international organizations and individual consumers.

responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE

Energy Crisis Offers Opportunity to Embrace New Solutions that Advance a Secure, Sustainable, and Inclusive Energy Transition

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="572" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/GettyImages-1390598566-1-820x572.jpg" alt="" class="wp-image-422182" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/GettyImages-1390598566-1-820x572.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/GettyImages-1390598566-1-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/GettyImages-1390598566-1-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/GettyImages-1390598566-1-768x535.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/GettyImages-1390598566-1-1536x1071.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/GettyImages-1390598566-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Hydrogen Tanks at chemical refinery &#8211; stock photo</figcaption></figure>



German companies want to boost their activities in Africa next year, especially in areas such as green hydrogen and liquefied natural gas, with 43% planning to increase investment in the continent, a survey seen by Reuters on Tuesday showed.



The poll of members of the German-African Business Association also showed that a further 39% of Association&#8217;s members aim to keep their spending levels in Africa stable.



&#8220;The majority of companies want to expand their activities in the coming year,&#8221; Association head Christoph Kannegiesser told Reuters. &#8220;It makes sense, because the continent is still on a growth trajectory.&#8221;



German companies invested about 1.6 billion euros in Africa in 2021, of which about 1.1 billion euros went to the sub-Sahara region, according to economy ministry data.



As Europe&#8217;s biggest economy has been seeking to reduce its reliance on Russia for gas since the invasion of Ukraine, Kannegiesser said he sees big opportunities in the energy sector in Africa.



&#8220;The field of green hydrogen and liquefied gas will give a new impetus in many countries,&#8221; he said, highlighting Senegal, Nigeria and Mauritania as countries with investment potential.



Namibia could also profit massively from green hydrogen production, said Kannegiesser.



The survey showed that 56% of the companies viewed their business activities in Africa in 2022 positively and a further 7% rated them &#8220;very good&#8221;.



The Association, which says it represents around 85% of German businesses active in Africa, wants the government to give greater support through improved conditions for export credit insurance and investment guarantees from the German government to ensure African business is not left to the United States and China.



The Association has criticised a law taking effect on Jan. 1 which obliges big companies to act against human rights and climate violations, saying it is counter-productive as it creates a new layer of bureaucracy.



(Reporting by Rene Wagner; Writing by Madeline Chambers; editing by David Evans)

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German companies plan to invest more in Africa in 2023

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="539" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/N2V66DFLLVNJJKXBDDAME4LP2A-820x539.jpg" alt="" class="wp-image-422087" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/N2V66DFLLVNJJKXBDDAME4LP2A-820x539.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/N2V66DFLLVNJJKXBDDAME4LP2A-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/N2V66DFLLVNJJKXBDDAME4LP2A-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/N2V66DFLLVNJJKXBDDAME4LP2A-768x505.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/N2V66DFLLVNJJKXBDDAME4LP2A-1536x1011.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/N2V66DFLLVNJJKXBDDAME4LP2A-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>FILE PHOTO: The United Nations logo is seen on a window in an empty hallway at United Nations headquarters during the 75th annual U.N. General Assembly high-level debate in New York, U.S., September 21, 2020. REUTERS/Mike Segar/File Photo</figcaption></figure>



MONTREAL, Dec 19 (Reuters)&nbsp;&#8211;&nbsp;A United Nations summit approved on Monday a landmark global deal to protect nature and direct billions of dollars toward conservation but objections from key African nations,&nbsp;home to large tracts of tropical rainforest,&nbsp;marred the final passage.



The Kunming-Montreal Global Biodiversity Framework, reflecting the joint leadership of China and Canada, is the culmination of four years of work toward creating an agreement to guide global conservation efforts through 2030.



The countries attending the U.N.-backed COP15 biodiversity conference had been&nbsp;negotiating&nbsp;a&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N338073&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">text proposed</a>&nbsp;on Sunday and talks addressing the finer points of the deal dragged on until Monday morning.



Delegates were able to build consensus around the deal&#8217;s most lofty target of protecting 30% of the world&#8217;s land and seas by the decade&#8217;s end,&nbsp;a target known informally as 30-by-30.&nbsp;However, questions around the funding contributions from developed nations to developing countries appeared unresolved as&nbsp;the delegates gathered to consider adoption of the text.



With China holding the COP15 presidency,&nbsp;Minister of Ecology and Environment Huang Runqiu&nbsp;appeared to disregard objections from the delegation of the Democratic Republic of Congo, lowering the gavel and declaring the deal passed only minutes after they said they were not able to support the deal.



&#8220;The parties which are developed nations should provide resources to parties which are developing,&#8221; the Congolese representative said through a translator.



Huang then&nbsp;acknowledged Mexican remarks&nbsp;supporting the final agreement and&nbsp;declared&nbsp;shortly after 3:30 a.m. (0830 GMT) that the&nbsp;deal&nbsp;was adopted, drawing outraged comments from other African delegations.



A representative from Cameroon said through a translator that the agreement was passed by force&nbsp;of hand.



A Ugandan representative&nbsp;declared that they did not accept the spirit and the manner at which the gavel fell and requested to put on record that Uganda&nbsp;did not support the procedure,&nbsp;invoking fraud.



A closing meeting will be held later on Monday.



<h2 class="wp-block-heading" id="h-what-s-in-the-deal">WHAT&#8217;S IN THE DEAL</h2>



In addition to supporting 30-by-30, the deal also directs countries to allocate $200 billion per year for biodiversity initiatives from both the public and private sectors



Developed countries will provide $25 billion in annual funding starting in 2025 and $30 billion per year by 2030.



The deal, which contains 23 targets in total, replaces the failed 2010&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N32X5U6&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Aichi Biodiversity Targets</a>&nbsp;that were intended to guide conservation through 2020. None of those goals were achieved, and no single country met all 20 of the Aichi targets within its borders.



Unlike with Aichi, the deal contains more quantifiable targets — such as reducing harmful subsidies given to industry by at least $500 billion per year — that should make it easier to track and report progress.



More than 1 million species could vanish by century&#8217;s end in what scientists have called a sixth mass extinction event. As much as 40% of the world&#8217;s land has been degraded, and wildlife population sizes have shrunk dramatically since 1970.



Investment firms focused on a target in the deal recommending that companies analyse and report how their operations affect and are affected by biodiversity issues.



The parties agreed to large companies and financial institutions being subject to &#8220;requirements&#8221; to make disclosures regarding their operations, supply chains and portfolios &#8211; but the word &#8220;mandatory&#8221; was dropped from previous drafts.



(Reporting by Isla Binnie; Editing by Christian Schmollinger)

FILE PHOTO: 75th annual United Nations General Assembly to be held mostly virtually due to the coronavirus disease (COVID-19) pandemic in New York

African objections mar passage of U.N. global nature deal

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/K7EZNRDVRFPONFQLJFQHW63UT4-820x547.jpg" alt="" class="wp-image-421842" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/K7EZNRDVRFPONFQLJFQHW63UT4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/K7EZNRDVRFPONFQLJFQHW63UT4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/K7EZNRDVRFPONFQLJFQHW63UT4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/K7EZNRDVRFPONFQLJFQHW63UT4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/K7EZNRDVRFPONFQLJFQHW63UT4.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Wind turbines are seen at the Saint-Nazaire offshore wind farm, off the coast of the Guerande peninsula in western France, September 30, 2022. REUTERS/Stephane Mahe/File Photo</figcaption></figure>



LONDON, Dec 6 (Reuters)&nbsp;&#8211;&nbsp;Global renewable power capacity growth is set to double over the next five years, driven by energy security concerns in the wake of Russia&#8217;s invasion of Ukraine, the International Energy Agency (IEA) said on Tuesday.



In an annual report on the outlook for renewables, the IEA said capacity worldwide is expected to grow by 2,400 gigawatts (GW) &#8211; equal to the entire power capacity of China today &#8211; to 5,640 GW by 2027.



The increase is 30% higher than the amount of growth forecast a year ago. High gas and power prices from a global energy crisis this year have made renewable power technologies more attractive.



Growth in renewables is also being driven by the United States, China and India implementing policies and market reforms to support renewables deployment more quickly than previously planned.



&#8220;Renewables were already expanding quickly, but the global energy crisis has kicked them into an extraordinary new phase of even faster growth as countries seek to capitalise on their energy security benefits,&#8221; said IEA Executive Director Fatih Birol.



&#8220;The world is set to add as much renewable power in the next five years as it did in the previous 20 years,&#8221; he added.



The report said renewables are set to account for over 90% of global electricity expansion over the next five years, overtaking coal to become the largest source of global electricity by early 2025.



Global solar photovoltaic capacity is set to almost triple by 2027, becoming the largest source of power capacity in the world, while wind capacity is set to almost double.



Meanwhile biofuels demand is set to increase by 22% by 2027, the report said.



(Reporting by Nina Chestney; Editing by Jan Harvey)

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Global renewable capacity growth set to double over next five years, says IEA

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="469" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/OCZGOXG3JRPU5G2YBH2SWB722U.jpg" alt="" class="wp-image-421795" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/OCZGOXG3JRPU5G2YBH2SWB722U.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/OCZGOXG3JRPU5G2YBH2SWB722U-300x193.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/OCZGOXG3JRPU5G2YBH2SWB722U-140x90.jpg 140w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption>A local walks past electricity pylons during frequent power outages from South African utility Eskom, caused by its aging coal-fired plants, in Orlando, Soweto, South Africa, September 28, 2022. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



LUSAKA, Dec 2 (Reuters)&nbsp;&#8211;&nbsp;Zambia will start rationing electricity supply to domestic consumers from Dec. 15 following a big drop in water levels in lake Kariba, threatening hydropower generation, Energy Minister Peter Kapala said on Friday.



Water levels in the lake have dropped to 4.1% of usable storage for the Kariba North Bank Power Station in Zambia and the Kariba South Bank on the Zimbabwean side of the lake, Kapala told parliament.



&#8220;The low water level situation in the lake Kariba threatens the power generation from both the Kariba North Bank Hydropower station and Kariba South Bank Hydropower station,&#8221; Kapala said.



Water levels in the lake have fallen due to reduced inflows from the Zambezi river and its tributaries and heavy use by power generation companies in Zambia and Zimbabwe.



Hydropower contributes more than 75% of Zambia&#8217;s power generation.



Kapala said it was projected that if the current water utilisation continued, the remaining water for power generation would not be enough for power generation from mid-December.



To avoid a complete shut-down of the two power stations, the Zambezi River Authority has told Zimbabwe to cut generation to a maximum of 300 MW and Zambia to a maximum of 800 MW, Kapala said.



&#8220;We anticipate that this will translate into a load management regime starting on the 15th of December, 2022 of up to six hours daily,&#8221; Kapala said.



The Kariba North Bank Power Station has an installed capacity of 1080 megawatts (MW) while the Kariba South Bank Power station in Zimbabwe has a capacity of 1050 MW.



The two countries jointly manage the water in the lake through the Zambezi River Authority.



(Reporting by Chris Mfula; Editing by Olivia Kumwenda-Mtambo and Jane Merriman)

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Zambia to ration electricity for domestic customers

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/NKM6ZW3TMRO3PP3R5RGXMIWFPI-820x429.jpg" alt="" class="wp-image-421740" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/NKM6ZW3TMRO3PP3R5RGXMIWFPI-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/NKM6ZW3TMRO3PP3R5RGXMIWFPI-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/NKM6ZW3TMRO3PP3R5RGXMIWFPI-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/NKM6ZW3TMRO3PP3R5RGXMIWFPI-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/NKM6ZW3TMRO3PP3R5RGXMIWFPI.jpg 1080w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Photo: via Reuters</figcaption></figure>



DAKAR, Dec 1 (Reuters)&nbsp;&#8211;&nbsp;Africa&#8217;s transition to cleaner fuels and power generation presents investors with opportunities across the value chain, but more direct financing is needed on projects, the head of a South African independent power producer, said on Thursday.



Brian Dames, chief executive officer of African Rainbow Energy &amp; Power, said the shift to cleaner energy in South Africa for example, meant a massive addition of new generation capacity with strong growth potential.



&#8220;South Africa quite simply has to add more than 50,000 megawatts (MW) of new capacity. Most of that is going to be renewables,&#8221; said Dames, speaking on a panel at the  Reuters NEXT conference.



Africa&#8217;s most industrialised nation is going through record power outages this year as its unstable coal-fired power stations, which account for more than 70% of generation capacity of around 58,000 MW, struggle to meet demand.



The South African government has&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AJ8N31400G&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">unveiled a five-year $84 billion</a>&nbsp;transition plan to cut carbon emissions and harness other economic opportunities from the energy transition.



The country aims to curb the share of coal in its power generation to around 38% by 2031, decommissioning old plants, and ramping up wind, solar and gas generation to around 47% during the period, according to a plan presented to parliament by state utility Eskom.



Dames, who headed Eskom from 2010 to 2014, said African Rainbow Energy and Power has invested in more than 700 MW of wind, solar and biomass generation.



&#8220;We want to build an African energy champion based on clean energy. We have projects of around 2.8 gigawatts (GW) that we are going to close next year,&#8221; Dames said, adding that the company was eyeing electricity trading and expanding in other African countries.



<h2 class="wp-block-heading" id="h-pool-of-capital">POOL OF CAPITAL</h2>



However, a key question that remains to be answered on African&#8217;s energy transition and its capacity to adapt to the impact of climate change, is that of finance.



Despite pledges by developed nations, governments and companies have seen little direct financial inflows into projects in Africa, Dames said, adding that there were still constraints on getting finance to the continent.



Anibor Kragha, executive secretary of the African Refiners and Distributors Association, acknowledged that projects on the continent were struggling to tap available finance for energy transition.



&#8220;We need to have a pool of capital designated for decarbonisation projects for Africa that can go beyond the commercial banks to the development finance institutions, so that we can actually execute in a meaningful and sustainable manner,&#8221; Kragha said while speaking on the same panel.



He said the association was putting together a register of projects and finding partners for two funds, one for liquefied petroleum gas development across the continent for clean cooking, and another for bankable refinery and storage and distribution infrastructure projects.



&#8220;Any project without financing is just an idea,&#8221; said Kragha,



(Reporting by Bate Felix; Editing by Kirsten Donovan)

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More finance needed for Africa’s energy transition opportunities

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="562" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/AJ7JTKPKIVLLVHHLY5YH6EU57Y-820x562.jpg" alt="" class="wp-image-420926" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/AJ7JTKPKIVLLVHHLY5YH6EU57Y-820x562.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/AJ7JTKPKIVLLVHHLY5YH6EU57Y-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/AJ7JTKPKIVLLVHHLY5YH6EU57Y-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/AJ7JTKPKIVLLVHHLY5YH6EU57Y-768x526.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/AJ7JTKPKIVLLVHHLY5YH6EU57Y-1536x1053.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/AJ7JTKPKIVLLVHHLY5YH6EU57Y-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>FILE PHOTO: View of a COP27 sign on the road leading to the conference area in Egypt&#8217;s Red Sea resort of Sharm el-Sheikh town as the city prepares to host the COP27 summit next month, in Sharm el-Sheikh, Egypt October 20, 2022. REUTERS/Sayed Sheasha/File Photo</figcaption></figure>



Nov 28 (Reuters)&nbsp;&#8211;&nbsp;Fossil fuel producers benefited from sympathetic treatment in Egypt at the&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N32C3PK&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">COP27 climate talks</a>, government officials said, bringing their influence to bear in rushed final negotiations and frustrating those who hoped for a more ambitious outcome.



Officials said the host Egypt, a natural gas exporter and frequent recipient of funds from Gulf oil producers, was partly responsible, although the war in Ukraine and the subsequent European energy crisis also had an impact.



Egyptian officials have said their priority was to provide a conducive atmosphere for negotiations and act as a neutral mediator. The presidency denied that fossil fuel producers had been given sympathetic treatment.



&#8220;The end decision at COP27 was a compilation of inputs reached by consensus of all the UNFCCC parties who were all consulted,&#8221; it said in a statement, referring to nearly 200 countries taking part in the summit under the U.N. Framework Convention on Climate Change.



Demands from environmental groups and scientists that governments and companies should leave oil and gas in the ground have had less traction this year, since European countries have scrambled to replace Russian gas.



The&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N32F0G4&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">COP27 meeting yielded mixed results</a>, with a hard-fought agreement on a fund for countries most harmed by climate change being welcomed by vulnerable nations, but a cover text that some officials said lacked ambition due to the influence of fossil fuel producers. The cover text&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N32G01E&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">summarises key outcomes</a>&nbsp;of the summit.



&#8220;The cover decision and the mitigation work program does not fully reflect the urgency of the climate crisis and did indeed cater too much to the more fossil and backward-looking forces,&#8221; said Espen Barth Eide, Norway&#8217;s minister of climate and environment.



Some of the countries that had pushed hardest for the&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N32G0EH&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">new fund for loss and damage</a>&nbsp;simultaneously tried to weaken language around phasing down fossil fuels, he added.



<h2 class="wp-block-heading" id="h-low-emission-energy">LOW-EMISSION ENERGY</h2>



The COP27 agreements are in line with what came out of the Glasgow meeting last year, to accelerate &#8220;efforts towards the phasedown of unabated coal power and phase-out of inefficient fossil fuel subsidies&#8221;, rather than being strengthened to phasing down fossil fuels as some countries had pushed for.



It also included a new reference to &#8220;low emission and renewable energy&#8221;. The Egyptian presidency said the language reflected part of the &#8220;just transition&#8221; adopted by all parties, which includes the use of hydrogen and nuclear energy to reduce emissions.



Egypt&#8217;s COP27 President Sameh Shoukry acknowledged there had been &#8220;disappointment in certain quarters&#8221; but told reporters after the deal that &#8220;a single party cannot achieve all their ambition, and this does not take away from the value of what was reached&#8221;.



For some, the Egyptian presidency had delivered a satisfactory deal by forging the agreement to set up a loss and damage fund. The idea had been resisted for years by some of the largest emitters, such as the United States and Europe, who were worried about the extent of liabilities.



Loss and damage was &#8220;the one thing we wanted a lot for ages, and that being solved at a COP being hosted by a developing country, that in itself is a great win because it shows their diplomatic strength,&#8221; said Selamawit Wubet, an adviser to a group of countries highly vulnerable to climate change.



But climate activists and some delegates said little progress had been made on most other issues, contending that the tone had been set by fossil fuel producers who played a more public and prominent role in Sharm el-Sheikh than at previous summits.



<h2 class="wp-block-heading">&#8216;DIFFICULT TRANSITION&#8217;</h2>



&#8220;It has now become quite clear that the transition away from fossil fuels is going to be a difficult one,&#8221; said Pakistan&#8217;s UN Ambassador Munir Akram, citing the impact of the war in Ukraine.



In the final 24 hours, the COP presidency held a meeting where calls from negotiators from countries and groups including Switzerland, the United States, Latin America and small island states, for Egypt to include language initially proposed by India to phase down all fossil fuels were unheeded, officials said. At least 80 countries supported such language, they said.



Some negotiators expressed concern that Egypt had advanced its proposal without thorough consultation, as major emitters and producers took a stand against more ambitious goals on limiting fossil fuel use.



The Egyptian presidency told Reuters the process was &#8220;praised by all parties for being focused and streamlined&#8221;.



&#8220;The issue of phasing down all fossil fuels was not agreed upon by many countries,&#8221; it said.



<h2 class="wp-block-heading">ALL NIGHT TALKS</h2>



Ahead of the final plenary meeting where a deal was struck just after 5:30 a.m. local time, a Reuters reporter saw some delegates caught off guard by the presidency&#8217;s last-minute announcement of the session. Guards had to wake up some delegates sleeping on couches and chairs outside the plenary hall after 3 a.m., instructing them to go inside.



&#8220;It was very rushed towards the end,&#8221; said Shauna Aminath, Maldives environment minister. &#8220;The normal procedure is that there would be more consultation and open dialogue on these things,&#8221; she said.



The European Union, which had threatened to walk out,&nbsp;<a href="https://ec.europa.eu/commission/presscorner/detail/en/SPEECH_22_7042" target="_blank" rel="noreferrer noopener">fell reluctantly in line</a>&nbsp;to preserve the deal on loss and damage.



Egypt will hold the COP presidency until it hands over to the United Arab Emirates, an ally and a major hydrocarbons producer, in just under a year.



&#8220;Holding COPs in petro-states may seem counterproductive but actually we can&#8217;t ignore these countries. They need to be engaged in the process and putting pressure on them as a COP host may provide bigger gains,&#8221; said Mohamed Adow, founder of think tank Power Shift Africa.



Read more:



<a href="https://www.reutersconnect.com/all?search=all%3AL8N32D1WQ&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">ANALYSIS-Drops of climate finance start to fill an ocean of need</a>



<a href="https://www.reutersconnect.com/all?search=all%3AL1N32G01E&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">COP27 delivers climate fund breakthrough at cost of progress on emissions</a>



<a href="https://www.reutersconnect.com/all?search=all%3AL1N31X1V1&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">EXPLAINER-What the latest U.N. science says about climate change</a>



Key takeaways from the COP27 climate summit in Egypt<a href="https://www.reutersconnect.com/all?search=all%3AL1N31X1V1&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



ANALYSIS-Drops of climate finance start to fill an ocean of need&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N32D1WQ&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



EXPLAINER-How far has COP27 inched beyond past climate deals?<a href="https://www.reutersconnect.com/all?search=all%3AL1N32F0G4&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



EXPLAINER-Who will pay for climate &#8216;loss and damage&#8217;?<a href="https://www.reutersconnect.com/all?search=all%3AL8N32G0EH&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



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EXPLAINER-What the latest U.N. science says about climate change<a href="https://www.reutersconnect.com/all?search=all%3AL1N31X1V1&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



(Reporting by Sarah McFarlane, Aidan Lewis, Valerie Volcovici, Gloria Dickie, William James, Kate Abnett and Seham Eloraby; Editing by Katy Daigle and Lisa Shumaker)

FILE PHOTO: Egypt prepares to host the COP27 summit

COP27 climate summit missed chance for ambition on fossil fuels, critics say

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/responsive_big_webp_-T-8c6OQK1-KTppFdqwFVMOi_mvKHnJgNOWMtDDuCRA-820x547.webp" alt="" class="wp-image-421605" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/responsive_big_webp_-T-8c6OQK1-KTppFdqwFVMOi_mvKHnJgNOWMtDDuCRA-820x547.webp 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/responsive_big_webp_-T-8c6OQK1-KTppFdqwFVMOi_mvKHnJgNOWMtDDuCRA-300x200.webp 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/responsive_big_webp_-T-8c6OQK1-KTppFdqwFVMOi_mvKHnJgNOWMtDDuCRA-135x90.webp 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/responsive_big_webp_-T-8c6OQK1-KTppFdqwFVMOi_mvKHnJgNOWMtDDuCRA-768x512.webp 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/responsive_big_webp_-T-8c6OQK1-KTppFdqwFVMOi_mvKHnJgNOWMtDDuCRA-1536x1024.webp 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/responsive_big_webp_-T-8c6OQK1-KTppFdqwFVMOi_mvKHnJgNOWMtDDuCRA.webp 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Jute farmers work in a flooded area of rural West Bengal which has been badly hit by climate change. Image: DIPAYAN BOSE / Climate Visuals Countdown.</figcaption></figure>



As the impacts of climate change hit harder, a new realism is dawning about our changed circumstances. Increasingly, we are recognising that climate change isn’t just a future problem from which we must protect our children. It is a problem from which we must protect ourselves today.



We need to fight climate change with both sword (cutting our emissions to fight further increases in warming) and shield (protecting ourselves from climate change’s increasing effects). Adaptation and mitigation should be pursued, as UN Secretary General António Guterres said, &#8220;with equal force and urgency.&#8221; Over 1C of warming has already happened, and <a href="https://www.unep.org/resources/emissions-gap-report-2022">warming over 1.5C is very likely</a>. We are <a href="https://www.unep.org/resources/adaptation-gap-report-2021">nowhere near ready</a> for the impacts this will bring.



<h2 class="wp-block-heading">Climate adaptation action plan</h2>



On 8 November 2022, the COP27 Presidency launched the&nbsp;<a href="https://climatechampions.unfccc.int/wp-content/uploads/2022/11/SeS-Adaptation-Agenda_Complete-Report-COP27_FINAL-1.pdf">Sharm-El-Sheikh Adaptation Agenda</a>&nbsp;– the first ever comprehensive global action plan rallying governments and non-state actors behind 30 adaptation goals for a resilient world by 2030. This framework signals a growing expectation that business, alongside other actors (countries, cities, investors, civil society), take action to adapt to the acute hazards now facing us.



Adaptation is a crucial part of the fight against climate change. It is necessary to protect people around the world from the climate change that’s already in process, and it also brings huge opportunities to help 7.8 billion people transition to a more sustainable and secure way of life.



For example, transitioning to&nbsp;<a href="https://www.ipcc.ch/report/ar6/wg2/">climate-resilient farming practices</a>&nbsp;could increase yields by 17% without increasing land use. Adaptation will spur the expansion of industries, such as water conservation, heat-resistant infrastructure, and drought-resistant agricultures, supporting prosperity and security for billions of people as we build a climate-resilient world.



Adaptation is good for business. It can help companies expand their business footprint, achieve efficiency gains, innovate for the future, and enhance long-term sustainability. In addition, business adaptation is good for the society of which business is an inseparable part. Business thrives when society thrives.



Retooling society to cope with a warming climate is a huge task. Business, with its dynamic capacity to power innovation and change, has a critical role to play. That’s why PwC and the World Economic Forum are collaborating to help drive adaptation to climate change. We’ve united a global community from the private and public sectors to&nbsp;<a href="https://www.pwc.com/gx/en/services/sustainability/publications/critical-business-actions-for-climate-change-adaptation.html">define three areas</a>&nbsp;in which business can take action:



<h2 class="wp-block-heading">1. Enhance resilience</h2>



Companies should assess their climate risks and build sufficient resilience. Companies should study the risks in their supply chains, identifying risk hotspots, prioritising areas for adaptation, and supporting stakeholders in their supply chains with the technical skills and financial support they need to adapt. For example, a large retailer identified dozens of its facilities at risk of extreme weather, while a major conglomerate identified hundreds of millions of dollars of potential climate-related risks in its supply chain – enabling both companies to <a href="https://www.pwc.com/gx/en/services/sustainability/publications/risks-and-opportunities-of-climate-change-on-business.html">take action to build resilience</a>. Other firms are striving to build resilience through developing or using, for example, weather data and early warning systems, drought resistant crops, flood defences, waste water collection and re-use, cooling systems, heat resistant infrastructure, and more.



<h2 class="wp-block-heading">2. Capitalise on opportunities</h2>



Businesses can flex their skills in investment and innovation to develop and scale products and services that enable society to live sustainably in the new climate reality. This includes, for example, investing in R&amp;D and building ecosystems to foster innovation and scale new adaptation solutions.



<h2 class="wp-block-heading">3. Shape collaborative outcomes</h2>



Successful adaptation requires cross-society collaboration. Managing climate change requires&nbsp;<a href="https://www.pwc.com/gx/en/services/sustainability/publications/net-zero-progress-and-perils.html">partnership between all parts of society</a>. Businesses can participate in multi-stakeholder efforts that promote action on climate change adaptation, from engaging with governments on policy-making to collaborating with industry players, community leaders, academia, development agencies and others to promote action. Partnering with local communities is particularly valuable because climate change has different impacts in different locales, meaning adaptation solutions need to be hyper-local. In addition, companies can join adaptation initiatives like&nbsp;<a href="https://racetozero.unfccc.int/join-the-race-to-resilience/">Race to Resilience</a>, co-invest in adaptation projects, and provide technical support to adaptation efforts.



<h2 class="wp-block-heading">Investing in climate adaptation</h2>



In short, smart companies are acting now to adapt to a climate that is changing before our eyes. The more energetically business dedicates itself to adaptation, the more society as a whole is helped to adapt and benefit.



Some business leaders view adaptation as a corporate social responsibility initiative rather than a business imperative as part of the overall execution strategy and risk management. We encourage these executives to recognise that&nbsp;<a href="https://www.pwc.com/gx/en/services/sustainability/publications/risks-and-opportunities-of-climate-change-on-business.html">all companies</a>&nbsp;can be affected by climate change. Even business leaders who may believe their companies have little exposure to climate change have&nbsp;<a href="https://www.pwc.com/gx/en/services/sustainability/climate/the-true-test-of-climate-resilience.html">no reason for complacency</a>.



The effort of adaptation is worth it. Globally, $1.8 trillion of investment into adaptation efforts could generate&nbsp;<a href="https://gca.org/reports/adapt-now-a-global-call-for-leadership-on-climate-resilience/">$7.1 trillion in total net benefits by 2030</a>. Insurers reckon that a dollar spent on adaptation – strengthening flood and wind defences, for example –&nbsp;<a href="https://www.economist.com/special-report/2015/11/26/hot-and-bothered">saves five in reconstruction</a>. Best of all, of course, proactive adaptation opens up opportunities to build a more sustainable world.



We encourage all companies to&nbsp;<a href="https://www.pwc.com/gx/en/services/sustainability/publications/critical-business-actions-for-climate-change-adaptation.html">take action in these three areas</a>&nbsp;to help fight climate change with both sword and shield.

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3 ways business can take action in the fight against climate change

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="515" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/download-53.jpg" alt="" class="wp-image-421500" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/download-53.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/download-53-300x193.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/download-53-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/download-53-768x494.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption>FILE PHOTO: A local walks past electricity pylons during frequent power outages from South African utility Eskom, caused by its aging coal-fired plants, in Orlando, Soweto, South Africa, September 28, 2022. REUTERS/Siphiwe Sibeko</figcaption></figure>



LITTLETON, Colo Nov 22 (Reuters)&nbsp;&#8211;&nbsp;African nations made clear at last week&#8217;s United Nations climate summit that the region would develop its fossil fuel resources to alleviate fuel shortages, help lift local populations out of poverty and spur vital economic growth.



Africa&#8217;s electricity consumption growth since 2017 was second only to top power consumer Asia, according to Enerdata, and is home to several countries that are expected to see favourable demographic changes and robust economic growth this decade, including Egypt, host of the latest COP27 climate talks.



This combination of a planned expansion in fossil fuel use and increased economic momentum and will raise fears among climate trackers that the region is set to accelerate pollution levels that may undermine climate change targets.



Yet the extent of any actual emissions increase will depend greatly on the source of power used to generate electricity in each country.



<h2 class="wp-block-heading">BENCHMARKS</h2>



In 2021, Africa as a whole generated 39% of its electricity from gas, 29% from coal, 8% from other fossil fuels, 17% from hydro, and 4% from renewable sources, according to data from Ember.



However, the power mix varies greatly by country depending on locally available power sources, legacy power production infrastructure, and proximity to energy exporters.



This wide variance in power mix is clear when comparing the electricity source profiles of Africa&#8217;s two largest electricity producers, South Africa and Egypt.



South Africa &#8211; Africa&#8217;s second largest economy after Nigeria &#8211; is primarily powered by locally-mined coal, which generated nearly 90% of the country&#8217;s total electricity supply of 224.63 terawatt hours (TWh) in 2021.



In contrast, Egypt uses natural gas for 77% of its electricity, and uses no coal in electricity generation at all. Egypt&#8217;s total electricity supply was 174.88 TWh in 2021, 28.4% less than South Africa&#8217;s total.



The two countries&#8217; electricity systems have starkly divergent emissions footprints as a result of their different primary fuels.



South Africa emits more than twice the amount of carbon dioxide and equivalent gases than Egypt, and was the 12th largest CO2 polluter from energy in 2021, according to the latest BP Statistical review of World Energy. Egypt ranked 28th.



<h2 class="wp-block-heading">WIDE RANGE</h2>



With more than 50 countries in total, Africa&#8217;s power mix trajectory is hard to predict and will be determined by a slew of local and international factors including government spending levels, private investment and foreign aid.



However, the energy systems of the continent&#8217;s five largest economies &#8211; Nigeria, South Africa, Egypt, Algeria and Morocco &#8211; can provide clues as to what may be expected in different parts of the continent.



Across southern Africa, coal&#8217;s footprint in the power mix may be hard to dislodge over the near term.



Beyond South Africa, local economies including Botswana, Zimbabwe and Zambia are all heavy coal users, and boast significant coal mining sectors that are large employers and tax payers.



However, given the international support for helping countries transition away from dirty coal towards cleaner energy sources, several nations that currently rely on coal are expected to receive funding for efforts to switch to other fuels, which may serve to cap coal&#8217;s market share in the region.



A potential candidate to replace coal in several parts of Africa is hydro power, which has expanded by 50% across all of Africa since 2010 and is the primary source of electricity in both Zimbabwe and Zambia as well as Mozambique and Namibia.



New projects are in development in Ethiopia, Uganda, Tanzania, Zambia and Angola that will expand power supplies across several parts of eastern, central and southern Africa, according to the International Hydropower Association.



<h2 class="wp-block-heading" id="h-gas-switch">GAS SWITCH?</h2>



Across Northern Africa, natural gas is making rapid inroads into energy systems, primarily from the abundant local supplies in Algeria and Egypt.



In Western Africa, Nigeria is playing a pivotal role in expanding gas consumption after boosting production by roughly 50% since 2010 and signing deals for pipelined exports to other countries in the region.



One major potential customer of Nigerian gas is Morocco, Africa&#8217;s 5th largest economy which has grown by 20% since 2017.



Morocco currently relies on imported coal for nearly 60% of electricity production, but recently signed a pipeline deal with Nigeria which has the potential to allow Morocco&#8217;s energy producers to switch out high-emitting coal for cleaner-burning natural gas.



If this pivot away from coal can be replicated elsewhere along the proposed pipeline&#8217;s route through Ghana, Cote d&#8217;Ivoire and Sierra Leone, then Africa&#8217;s higher use of fossil fuels may not necessarily equate to the higher emissions feared by climate advocates.



Indeed, greater production and distribution of natural gas &#8211; along with the expansion of renewable energy sources &#8211; could allow some coal-dependent economies in Africa to actually cut use of the world&#8217;s dirtiest fuel, even as they increase overall energy consumption.



Electricity use by region<a href="https://tmsnrt.rs/3gttLur" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/3gttLur</a>



Electricity generation by source in key African economies<a href="https://tmsnrt.rs/3XzYCX5" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/3XzYCX5</a>



Top 5 African economies<a href="https://tmsnrt.rs/3Vk5DZN" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/3Vk5DZN</a>



(Reporting By Gavin Maguire)

download-53

Key African nations set off on energy & emissions growth paths: Maguire

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/107153335-1668691796457-gettyimages-1440699819-sg012883_d079f79e-40fe-4395-a5c6-b3d583d5669b-820x462.jpeg" alt="" class="wp-image-421467" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/107153335-1668691796457-gettyimages-1440699819-sg012883_d079f79e-40fe-4395-a5c6-b3d583d5669b-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/107153335-1668691796457-gettyimages-1440699819-sg012883_d079f79e-40fe-4395-a5c6-b3d583d5669b-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/107153335-1668691796457-gettyimages-1440699819-sg012883_d079f79e-40fe-4395-a5c6-b3d583d5669b-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/107153335-1668691796457-gettyimages-1440699819-sg012883_d079f79e-40fe-4395-a5c6-b3d583d5669b-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/107153335-1668691796457-gettyimages-1440699819-sg012883_d079f79e-40fe-4395-a5c6-b3d583d5669b.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Climate reparations, or “loss and damage” funding, is a highly divisive and emotive issue that is seen as a fundamental question of climate justice. Sean Gallup | Getty Images News | Getty Images</figcaption></figure>



Government ministers and negotiators from nearly 200 countries finally secured an agreement Sunday to create a new fund to compensate poor nations for the “loss and damage” they’re experiencing as a result of extreme weather worsened by climate change.



The agreement, reached in the early hours of Sunday morning, also reaffirmed efforts to limit global temperature rise to the crucial temperature threshold of 1.5 degrees Celsius above pre-industrial levels.



The two-week-long COP27 climate summit took place in Egypt’s Red Sea resort town of Sharm el-Sheikh against a backdrop of increasing extreme weather events, geopolitical conflicts and a deepening energy crisis.



Delegates struggled to build consensus on an array of issues, even as a flurry of U.N. reports published ahead of the conference made clear just how close the planet is to irreversible climate breakdown.



The scale of division between climate envoys saw talks run beyond Friday’s deadline, with campaigners accusing the U.S. of playing a “deeply obstructive” role by blocking the demands of developing countries.



Some of the major sticking points included battles over whether all fossil fuels or just coal should be named in the decision text and whether to set up the “loss and damage” fund for countries hit by climate-fueled disasters.



The highly divisive and emotive issue of loss and damage dominated the U.N.-brokered talks and many felt the success of the conference hinged on getting wealthy countries to agree to establish a new fund.



The summit made history as the first to see the topic of loss and damage funding formally make it onto the COP27 agenda. The issue was first raised by climate-vulnerable countries 30 years ago.



Lifting hopes of a breakthrough on loss and damage thereafter, the European Union said late Thursday that it would be prepared to back the demand of the G-77 group of 134 developing nations to create a new reparations fund.



The proposal was welcomed by some countries in the Global South, although campaigners decried the offer as a “poison pill” given the bloc said it was only willing to provide aid to “the most vulnerable countries.”



Rich countries have long opposed the creation of a fund to address loss and damage and many policymakers fear that accepting liability could trigger a wave of lawsuits by countries on the frontlines of the climate emergency.



The final agreement was reached after tense negotiations throughout the night, with many delegates exhausted by the time the deal was announced around 4a.m. local time.



There has been some disappointment that there was a lack of emphasis on raising targets to curb emissions, and there are many details around the loss and damage fund that are yet to be ironed out, including the thorny issue of which countries will pay into the fund.

107153335-1668691796457-gettyimages-1440699819-sg012883_d079f79e-40fe-4395-a5c6-b3d583d5669b

New global climate deal struck at conference in Egypt

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/107153230-1668681372039-gettyimages-1244778487-AFP_32NH9KM-820x461.jpeg" alt="" class="wp-image-421459" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/107153230-1668681372039-gettyimages-1244778487-AFP_32NH9KM-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/107153230-1668681372039-gettyimages-1244778487-AFP_32NH9KM-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/107153230-1668681372039-gettyimages-1244778487-AFP_32NH9KM-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/107153230-1668681372039-gettyimages-1244778487-AFP_32NH9KM-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/107153230-1668681372039-gettyimages-1244778487-AFP_32NH9KM-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/107153230-1668681372039-gettyimages-1244778487-AFP_32NH9KM.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Around 35,000 delegates from nearly 200 countries are expected to convene in the Red Sea resort town of Sharm el-Sheikh to discuss collective action to tackle the climate emergency. Ahmad Gharabli | Afp | Getty Images</figcaption></figure>



Negotiators say they have struck a potential breakthrough deal on the thorniest issue of United Nations climate talks, the creation of a fund for compensating poor nations that are victims of extreme weather worsened by rich nations’ carbon pollution.



“There is an agreement on loss and damage,” which is what negotiators call the concept, Maldives Environment Minister Aminath Shauna told The Associated Press Saturday. It still needs to be approved unanimously in a vote later today. “That means for countries like ours we will have the mosaic of solutions that we have been advocating for.”



“We proposed a text and this actually just has just been accepted, so we now have a fund,” Norway Climate and Environment minister Espen Barth Eide told the AP.



New Zealand Climate Minister James Shaw said both the poor countries that would get the money and the rich ones that would give it are on board with the proposed deal.



If approved, it’s a big win for poorer nations that have been calling for compensation — sometimes even called reparations — for decades because they are often the victims of climate disasters despite having contributed little to the pollution that heats up the globe. It’s a reflection of what can be done when they remain unified, said Alex Scott, a climate diplomacy expert at the think tank E3G.



“I think this is huge to have governments coming together to actually work out at least the first step of at least how to deal with the issue of loss and damage,” Scott said. But like all climate financials, it is one thing to create a fund, it’s another to get money flowing in and out, she said. The developed world still has not kept its 2009 pledge to spend $100 billion a year in other climate aid — designed to help poor nations develop green energy and adapt to future warming.



“The draft decision on loss and damage finance offers hope to the vulnerable people that they will get help to recover from climate disasters and rebuild their lives,” said Harjeet Singh, head of global political strategy at Climate Action Network International.



The Chinese lead negotiator would not comment on a possible deal. The U.S. negotiations office, where special envoy John Kerry is sick with Covid-19, declined to comment. China and the U.S. are the two biggest carbon polluters. European negotiators were huddling over proposals.



Alok Sharma, the British official who chaired last year’s climate talks in Glasgow, said details of the agreement still needed to be worked out.



“We are continuing to discuss,” he said, as he rushed with aides to a meeting at the Egyptian presidency office.



The Egyptian presidency, which had been under criticism by all sides, proposed a new loss and damage agreement Saturday afternoon and within a couple of hours an agreement was struck but Norway’s Eide said it was not so much the Egyptians but countries working together.



According to the draft of the proposal from Egypt developed countries would be “urged” to contribute to the fund, which would also draw on other private and public sources of money such as international financial institutions.



“We managed to make progress on an important outcome,” said Wael Aboulmagd, who heads the Egyptian delegation.



However, the Egyptian proposal does not suggest that major emerging economies such as China have to contribute to the fund, which was a key ask of the European Union and the United States.



The Egyptian proposal also does not tie the creation of the new fund to any increase in efforts to cut emissions, or restrict the recipients of funding to those countries that are most vulnerable, which had been an earlier proposal from the Europeans.



A second overarching document from the climate talks leadership that was also published by the Egyptian presidency Saturday ignores India’s call to phase down oil and natural gas, in addition to last year’s agreement to wean the world from “unabated” coal.



The package of drafts released by the Egyptian presidency, on efforts to step up emissions cuts and the overarching decision of this year’s talks, barely build on what was agreed in Glasgow last year.



The Egyptian package leaves in place a reference to the Paris accords less ambitious goal of limiting global warming to “well below 2 degrees Celsius (3.6 Fahrenheit)” which scientists say is far too risky.



It also doesn’t suggest any new short-term targets for either developing or developed countries, which experts say are needed to achieve the more ambitious 1.5C (2.7F) goal that would prevent some of the more extreme effects of climate change.



Earlier on Saturday government delegations and the COP27 meeting’s Egyptian hosts pointed fingers at each other.



German Foreign Minister Annalena Baerbock said responsibility for the fate of the talks “now lies in the hands of the Egyptian COP presidency.”



Hours later a deal was struck.



Before striking a deal, Egyptian Foreign Minister Sameh Shoukry, speaking as the summit’s chair, deflected blame.



“The issue now rests with the will of the parties,” Shoukry said at a press conference. “It is the parties who must rise to the occasion and take upon themselves the responsibility of finding the areas of convergence and moving forward.”



He added that “all must show the necessary flexibility” in reaching a consensus, and that Egypt was merely “facilitating this process.”



Throughout the climate summit, the American, Chinese, Indian and Saudi Arabian delegations have kept a low public profile, while European, African, Pakistan and small island nations have been more vocal.



Many of the more than 40,000 attendees have left town, and workers started packing up the vast pavilions in the sprawling conference zone.



U.N. climate meetings have evolved over the years to resemble trade fairs, with many countries and industry groups setting up booths and displays for meetings and panel discussions.



At many stands, chairs were stacked neatly ready for removal, and monitors had been taken away, leaving cables dangling from walls. Pamphlets and booklets were strewn across tables and floors. Snack bars, which the Egyptian organizers said would remain open through the weekend, were emptied out.



At the youth pavilion, a gathering spot for young activists, a pile of handwritten postcards from children to negotiators was left on a table, in what was perhaps an apt metaphor for the state of play as the talks bogged down.



“Dear COP27 negotiators,” read one card. “Keep fighting for a good planet.”



An occasional gust of wind from the open doors nearby blew some of the cards onto the floor.

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UN climate talks poised for a deal creating disaster fund

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="549" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/QAKTZWGDZZPPVESQB4WGXSJF6U-820x549.jpg" alt="" class="wp-image-421449" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/QAKTZWGDZZPPVESQB4WGXSJF6U-820x549.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/QAKTZWGDZZPPVESQB4WGXSJF6U-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/QAKTZWGDZZPPVESQB4WGXSJF6U-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/QAKTZWGDZZPPVESQB4WGXSJF6U-768x514.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/QAKTZWGDZZPPVESQB4WGXSJF6U.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Egyptian Foreign Minister and Egypt&#8217;s COP27 President Sameh Shoukry attends an informal stocktaking session during the COP27 climate summit, in Sharm el-Sheikh, Egypt, November 18, 2022. REUTERS/Mohamed Abd El Ghany</figcaption></figure>



SHARM EL-SHEIKH, Egypt, Nov 18 (Reuters)&nbsp;&#8211;&nbsp;A European Union proposal buoyed hopes of progress at the COP27 climate summit on Friday, its final scheduled day, as the 27-country EU said it would back one of the toughest agenda items – financing for countries wracked by climate-fuelled disasters.



But with several other sticking points dogging this year&#8217;s U.N. climate talks, host country Egypt said a final deal was still not expected before the weekend.



&#8220;I remain committed to bring this conference to a close tomorrow in an orderly manner, with the adoption of a series of consensus decisions that will be comprehensive, ambitious, and balanced,&#8221; COP27 President Sameh Shoukry told reporters.



The two-week conference at the Red Sea resort of Sharm el-Sheikh is a test of global resolve to combat planetary warming at a time that climate-driven storms, floods, droughts and wildfire compete for governments&#8217; attention with a war in Europe and soaring inflation.



Negotiations were energized after the&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N32D3X8&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">European Union</a>&nbsp;said late on Thursday that it would back the demand of the G77 group of 134 developing countries to set up a fund to help countries cope with&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3202C4&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">&#8220;loss and damage&#8221;,</a>&nbsp;the irreparable damage being wrought by climate change.



But it was unclear Friday if all of those countries would accept the EU&#8217;s offer of a fund to aid only &#8220;the most vulnerable countries&#8221;, rather than all developing countries as they had requested.



The climate minister for the Maldives, which faces inundation from rising seas, welcomed the proposal for establishing a fund &#8211; which did have strings attached, including that it would be paid into by a &#8220;broad donor base&#8221; of countries including China.



&#8220;As the lowest-lying country in the world, we are heartened by the goodwill in this room,&#8221; Shauna Aminath said. &#8220;We&#8217;re very close to an agreement, and let&#8217;s engage with one another and make this happen.&#8221;



<h2 class="wp-block-heading">LOSS AND DAMAGE</h2>



The loss and damage issue has dominated this year&#8217;s summit, and talks had stuttered until Thursday as the United States and EU resisted a new fund over fears that it could open the door to spiralling liabilities to pay.



EU climate policy chief Frans Timmermans stipulated that the bloc would only back the fund if countries agreed to other measures to slow climate change &#8211; specifically, phasing down all fossil fuels along with unabated coal-fuelled power generation, while submitting progress reports to make sure this gets done.



Delegates were eagerly awaiting news of how the United States and China &#8211; the world&#8217;s two biggest economies and two biggest polluters &#8211; would respond to the offer by the EU, the third biggest economy and greenhouse gas emitter.



Neither China nor the United States have so far formally responded to the EU&#8217;s proposal. Deals at COP27 must be made with support from all of the nearly 200 countries present.



<h2 class="wp-block-heading" id="h-final-deal-in-sight">FINAL DEAL IN SIGHT?</h2>



On Friday morning, the U.N. climate agency published a first official draft of the final summit deal. The aim is for a global agreement that progresses towards fighting climate change on a range of fronts &#8211; from more funding, to guarantees that countries will act faster to slash planet-heating emissions.



The draft text left a placeholder for &#8216;loss and damage&#8217; &#8211; to be filled in if countries can thrash out a deal on that issue.



Other elements of the document repeated commitments from last year&#8217;s climate summit, for example reiterating the 2015 Paris Agreement&#8217;s goals of limiting the rise in global temperatures to 2C, while aiming for 1.5C &#8211; the limit that would avoid its worst impacts, and on which small island states say their future depends.



Some countries, including the EU and Britain, have pushed for the overall deal in Egypt to lock in country commitments for more ambitious climate action.



Ireland&#8217;s environment minister, Eamon Ryan, said countries needed to ratchet up their emissions-cutting efforts to avoid spending more later on recovery from disasters turbo-charged by climate change.



&#8220;It&#8217;s important that we get a strong cover text,&#8221; he told Reuters. &#8220;The responsibility very much will lie now with the Egyptian presidency in trying to get something that we can rally behind.&#8221;



COP27 host Egypt, meanwhile, said too much pressure was being put on the final, political deal, with a senior official saying the document needed to &#8220;be a reflection of the negotiations&#8221; that have taken place since the summit began on Nov. 6.



The draft text also repeated a pledge from last year&#8217;s summit to phase down the use of coal-fuelled power &#8211; but did not include the call backed by India, the EU and Britain to expand this to cover all fossil fuels.



Some delegates expressed irritation over an alleged lack of focus in the proceedings as well as an inconsistent supply of refreshments and wi-fi connectivity.



&#8220;There is a lack of collective focus in this COP, and that is why we don&#8217;t know how to channel all the energy we are feeling here inside into a political force that can move us in the right direction,” said Manuel Pulgar-Vidal, head of climate at the non-profit World Wildlife Fund and the president of the COP20 climate summit in Lima, Peru, in 2014.



For daily comprehensive coverage on COP27 in your inbox, sign up for the Reuters Sustainable Switch newsletter&nbsp;<a href="https://www.reuters.com/newsletters/reuters-sustainable-switch/?utm_source=site&amp;utm_medium=article&amp;utm_campaign=cop27">here</a>



COP27 page on Eikon&nbsp;<a href="https://amers2.apps.cp.thomsonreuters.com/cms/?navid=820392360" target="_blank" rel="noreferrer noopener">https://amers2.apps.cp.thomsonreuters.com/cms/?navid=820392360</a>



The newest fronts in climate-change-related legal battles&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N32C23H&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



FACTBOX-COP27: Counting the rising cost of climate disasters<a href="https://www.reutersconnect.com/all?search=all%3AL8N32064K&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



INSIGHT-Bankers bet billions on new wave of debt-for-nature deals<a href="https://www.reutersconnect.com/all?search=all%3AL8N31G064&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



COP27 climate talks seen as key to success at next month&#8217;s U.N. nature summit&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N32B2XF&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



INSIGHT-Egypt&#8217;s Nile Delta farmland salts up as temperatures, and seas, rise<a href="https://www.reutersconnect.com/all?search=all%3AL8N31X7GN&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Greeted like a rock star, Brazil&#8217;s Lula promises to protect Amazon<a href="https://www.reutersconnect.com/all?search=all%3AL1N32C0UF&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Fossil carbon dioxide emissions<a href="https://tmsnrt.rs/3UlWfVD" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/3UlWfVD</a>



(Reporting by Kate Abnett and Aidan Lewis in Sharm el-Sheikh, and Sarah McFarlane in London; Additional reporting by Valerie Volcovici, Gloria Dickie, Dominic Evans and William James in Sharm el-Sheikh. Writing by Katy Daigle; Editing by Frank Jack Daniel)

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