EU and AU launch €150 billion package for green energy transition and climate resilience in Africa

• Climate activists warn against financing Africa’s transition to green energy

The European Union has launched its first regional plan under its global gateway investment program, which will provide €150 billion ($170 billion) in funding to African countries.

The funding comes at a time when African nations are experiencing more severe and frequent climate impacts, despite contributing the least to the climate change crisis.

The program aims to support Africa for a strong, inclusive, green and digital recovery and transformation. The financing will accelerate the green and digital transition and sustainable growth, as well as the creation of decent jobs.

The package will be delivered through Team Europe initiatives: the EU, its Member States and European financial institutions will work together to support concrete and transformative projects jointly identified in priority areas.

Investments of around €150 billion are expected in target areas such as tackling the global challenge of climate change. The EU plans to work with Africa to maximize the benefits of the ecological transition and minimize environmental risks in full compliance with the Paris Agreement.

It will include the production of clean hydrogen in Africa. Massive use of renewable energy and clean hydrogen production would contribute to at least 40 gigawatts of electrolyzer capacity by 2030. It would also help grow the renewable hydrogen sector by unlocking business opportunities on both the supply and demand sides for energy-intensive industries.

The package will also increase the share of renewable energy and hydrogen in the energy mix, access to affordable, reliable and sustainable energy, and support market integration and sector reforms.

The initiative aims to ensure that renewable energy generation capacity increases by at least an additional 300 GW by 2030; promote the sustainable use of natural resources and the conservation of biodiversity, as well as nature-based solutions as the basis for a green recovery, including support for the protection of landscapes and ecosystems.

The ambition is to improve the lives of 65 million people, capture carbon dioxide, stabilize three million square kilometers of land and ensure water security.

Africa is particularly vulnerable to the extreme impacts of climate change, which threaten decades of economic progress and development.

The package will contribute to building resilience by supporting disaster risk reduction and adaptation to climate change, as well as strengthening disaster preparedness for effective response and recovery.

EU President Ursula von der Leyen announced the African investment funding during a two-country trip to Africa to promote the program.

The head of the Commission announced this at a joint press conference with the President of Senegal, Macky Sall, who recently took over the helm of the African Union.

African Union President Sall, who welcomed the development, said: “Europe and Africa should cooperate, firstly because of our geographical proximity, the peace and stability of our two continents are closely linked.

MEANWHILE, climate activists expressed the need to clarify the details of how the fund will be spent, the conditions and timetable for implementing these plans.

Developed countries have yet to meet climate finance commitments of $100 billion a year to developing countries to support adaptation and mitigate the effects of climate change.