AFRICA

In Africa, Oil Change is supporting movement partners in challenging key proposed fossil fuel projects.

OVERVIEW OF WORK

In Africa, Oil Change is supporting movement partners in challenging key proposed fossil fuel projects and calling on African governments and institutions to stop fossil fuel expansion and support energy access and a just transition (see Addis Ababa communiqué).

Together with local partners, we’re working to shift energy financing away from fossil fuels and increase financing for distributed renewable energy to support the goal of providing universal access to all; increase public financing for distributed renewable energy that also ensures a higher degree of local ownership of solutions; expose the scale and source of financing for fossil fuel projects on the continent; support frontline groups in their efforts to resist harmful fossil fuel projects; and support and facilitate convenings for movement partners to support information, capacity sharing, and strategy development.

LATEST PROGRAM POSTS

A new briefing released by Oil Change International details how the growth of distributed renewable energy in Africa has so far failed to include locally-owned companies and initiatives. The sector has been growing rapidly since 2013 — especially for companies focused on “pay-as-you-go” solar home systems — but finance has overwhelmingly only been accessible for multinational companies that are based in Europe or North America or led by entrepreneurs from these regions, meaning profits are largely not remaining in Africa.

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LATEST PROGRAM RESEARCH

Between 2016, following the adoption of the Paris Climate Agreement, and June 2021, public and private financial institutions poured at least $132 billion in lending and underwriting into 964 gas, oil and coal projects in West, East, Central and Southern Africa. The vast majority of this finance came from financial institutions based outside Africa, both commercial banks and public institutions such as development banks and Export Credit Agencies.

The Sky’s Limit Africa assesses fossil fuel industry plans to sink USD $230 billion into the development of new extraction projects in Africa in the next decade — and USD $1.4 trillion by 2050. It finds these projects are not compatible with a safe climate future and that they are at risk of becoming stranded assets that leave behind unfunded clean-up, shortfalls of government revenue, and overnight job losses.

Communities in Africa have generally contributed the least to climate change, been undermined the most by international trade and finance policies, and have a right to better international support for distributed renewable energy. In order to reach universal energy access before the 2030 target set by the UN Sustainable Development Goals, international public finance institutions have an urgent responsibility to provide more funding and better financial transparency and tracking for distributed renewable energy. Additionally, they have a responsibility to foster local participation in and ownership of distributed renewable energy initiatives. This briefing provides recommendations for how international public finance institutions

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