Op-Ed | Energy Transition: A unique opportunity for Mozambique – By Florival Mucave

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Op-Ed | Energy Transition: A unique opportunity for Mozambique – By Florival Mucave

6:48 CAT | 31 Oct 2022

Photo courtesy: Mozambique Energy Chamber

Part 1: Which Strategic Vision for the COP27 in Sharm El-Sheikh?

The energy transition is being defined as the pathway to transform the global fossil-based energy sector to zero carbon in the second half of this century. At its core is the need to reduce energy-related Carbon Dioxide (CO2) emissions to limit climate change. Decarbonising the energy sector requires urgent action on a global scale. While a global energy transition is underway, parallel actions aimed at reducing carbon emissions and mitigating the effects of climate change are needed.

Natural gas has an important role to play in a net-zero world. Forecasts made in the context of the Sustainable Development Scenario (SDS) show a continuing, long-term role for natural gas, even when demand levels are reduced from current levels. For example, in the United States, India and China – the top three greenhouse gas emitters – natural gas, in particular, has the potential to remain an integral component of the low-carbon energy transition in coming decades, depending on policies and technologies in place.

A clear indication of the importance of natural gas as a transitional energy was the European Union’s endorsement of gas as a green energy source.

The European Union’s decision to declare natural gas as an energy of transition is of extreme importance to Mozambique, given the fact that the country possesses the third largest known reserves of natural gas in the world, the exploitation of which could have an enormous multiplying effect on the national economy and raise Mozambique from one of the poorest countries in the world (LDC) to a middle-income country over the next fifteen years, doubling its GDP.

African countries, especially Least Developed Countries such as Mozambique in addition to the net-zero objectives and strategies, should actively participate in the global debate on climate adaptation, climate funds and a just and inclusive transition.

Given the fact that Mozambique as well as other low-income countries face climate change challenges in the agriculture and tourism sectors. It is imperative that the share of climate funds allocated to them be evenly distributed between adaptation and mitigation needs. Contrary to what has been happening, as currently, most of the climate funds allocated to low-income countries are for mitigation projects, thus, depriving these countries of the necessary adaptive capacity to protect themselves from the impact of climate change.

The structure of climate funds also represents a major concern for low-income countries, particularly Least Developed Countries (LDCs) and Heavily Indebted Poor Countries (HIPCs) such as Mozambique. Climate Funds provided to these countries have predominantly been loans and not grants as originally agreed in the Paris Climate Change Accords. The terms of these loans are prohibitive which means that the Least Developed Countries most vulnerable to the impacts of climate change have the least access to climate funds.

Mozambique’s narrative in the climate change debate and the relevance of its Energy Transition Plan will entirely depend on Mozambique’s ability to establish a national strategic vision and define short, medium and long term solutions appropriate to Mozambique’s context beyond 2050. This narrative should not only focus on the request for funds from cooperation partners to solve specific problems related to climate change, but above all on a strategic vision of Mozambique as a regional energy powerhouse with global potential.

By Florival Mucave

Source: Mozambique Energy Chamber / Media Release