Senate Promises Legislations On Energy Transition Financing

The Chairman of the Senate Committee on Ecology and Climate Change, Senator Seriake Dickson, has expressed the readiness of the National Assembly to support any new legislation or amendment of existing laws to help in the nation’s energy transition financing bid

Dickson gave the assurance in Abuja during a goodwill message at the Africa Climate Forum 2023, with the theme ‘Powering the Future: Financing Energy Transition for Sustainable Progress’.

The lawmaker who commended the organisers of the event, Global Centre for Law, Business and Economy, called for synergy among governmental institutions and other stakeholders towards making the country transition to renewable energy.

He expressed the readiness of the National Assembly to amend existing laws, where necessary, or enact any new legislation designed to ensure energy transition.

Dickson stated that in order to ensure a sustainable and equitable energy future, the urgency of the topic and importance of the event cannot be overemphasised.

He stated that dependence on fossil fuels had not only contributed to global warming, but also resulted in air pollution, geo-political and local conflicts and social inequities.

Noting that it was the collective responsibility of all to work towards a sustainable energy transition, Dickson argued that financing would however continue to play a central role.

He said, “Let’s begin to acknowledge that transitioning to sustainable energy is not an easy task. We have been told that Africa has 40 per cent of the world’s renewable energy sources yet, available financing so far indicates that we have only attracted only two per cent financing.

“So, the task is not easy financing the transition. It requires massive investment in clean energy sources, investment in innovative technologies and a shift generally in our energy consumption patterns. With great challenges also come great opportunities.

“The transition to clean energy is not just mitigating the effects of climate change.

Renewable energy sources have become increasingly competitive. Financing this transition presents a win-win scenario.”

In achieving a win-win situation, the parliamentarian noted that there was the need to consider certain variables.

“We have to look at possibilities of promoting public- private partnerships (PPP), we have to look at incentives for subsidies, we have to consider issues related to carbon pricing. We have to copy from what others have done successfully in the area of green bonds, technology and innovation, education and creating awareness and then ultimately tie them up with a cohesive policy on renewable energy moving forward.”

According to him, the country had made progress in some areas in the march towards transitioning to renewable energy, citing the setting up of the National Council on Climate Change (NCCC).

In his keynote address at the event, the NCCC Director General, Dr. Salisu Dahiru who cited Nigeria’s Long Term Low Emission Development Strategy (LT LEDS), disclosed that Nigeria’s Net-Zero plan for the energy sector will be driven by a shift towards further dependence on hydro, biomass, wind, solar PV and nuclear as the country starts to exploit its large renewable energy potential for a successful energy transformation.

“The current electricity access rate is approximately 55 per cent of the population, of which 86 per cent are based in urban areas and 34 per cent are in rural areas.

“The modelling in the LT -LEDs indicates that about 60 per cent of Nigeria’s electricity can be achieved under the gas economy scenario while 80 percent can be achieved under the renewable energy scenarios, respectively by 2050, which will progress to 92 per cent in 2060 under the renewable energy scenario,” he revealed.

Dahiru stressed that from Nigeria’s Energy Transition plan, $410 billion ($14 billion per annum) was required to attain Net Zero by 2050.

Earlier in his welcome address, the Director General of the Global Centre for Law, Business and Economy, Dr. George Nwangwu, noted that energy drives industrialization, boosts productivity and economic growth, spurs human development and is crucial to achieving most of the United Nations Sustainable Development Goals (SDGs).

According to him, energy transition has become the centre of the development discourse in Africa and across the globe.

He expressed the belief that energy transition in Africa will be driven by the private sector, and that the resolutions reached at the Nairobi Summit are going to be implemented by the private sector in Africa.

Culled from Thisday