The African Refiners and Distributors Association (ARDA) has stepped up its campaign for the use of cleaner fuel and a just energy transition that will give consideration to Africa’s particular circumstances.
The Association, which is made up of participants in the African downstream petroleum sector, made a number of remarks during the 27th Conference of Parties (COP27), which was held in Sharm El-Sheikh, Egypt. They noted the necessity for an energy transition but cautioned against moving too quickly in order to harm Africa’s overarching development goals.
Anibor Kragha, executive secretary of ARDA, stated that the key to achieving a sustainable energy transition is to concentrate on cleaner transportation fuels, advance the adoption of liquefied petroleum gas (LPG), and decarbonize refining operations as well as storage and distribution infrastructure.
Kragha sees gas as a crucial option, especially as an economic policy tool to balance the global climate mitigation agenda and the urgent need to end energy poverty in Africa. This is because of the continent’s expanding population and the challenge of energy security.
The African Union and its strategic partner, AfroChampions, have partnered with innovative governments across Africa, private sector enablers, and industrialists to create a model multi-stakeholder innovation platform to showcase the most recent improvements in industry best practices. This is the context in which Kragha’s perspective on the use of gas is being presented.
According to the Executive Secretary, achieving the necessary energy transition across the continent will require sustainable financing, proper regulation, standardization, and strategic policies.
Speaking on another session hosted by IPIECA and organized by the US Chamber of Commerce, World Steel Association, and US Council for International Business, Kragha said that an energy transformation should encompass all facets of the economy.
Kragha observed that, despite the fact that different climate adaptation and mitigation projects are prioritized, a just transition remained sacred along all value chains.
Kragha said ARDA is doing everything it can to attract funding into the downstream sector of the petroleum industry to accelerate the transition to cleaner fuels in the sector. He lamented that the global south, and Africa in particular, are suffering from climate-related impacts while facing significant challenges as well as opportunities on the transition to net zero.
ARDA and other stakeholders on the continent are working on a unique African Downstream Energy Transition Roadmap, which highlights the need for investments in strategic storage and distribution infrastructure that would support cleaner fuels on the continent’s path, according to Kragha at a side event hosted by Colombia. While Africa’s contribution to global cumulative CO2 emissions is very small (2.73%) compared to other continents with levels over ten times that, Kragha said.
Additional remarks were made at an IPIECA side event on “Enablers of a Net-Zero Emissions Future in the Global South.” Kragha emphasized the need for a strong financial strategy to support the roadmap for the energy transition, noting that doing so would require addressing issues related to the environment, social issues, and governance (ESG), and that African Development Finance Institutions (DFIs) would have to play a key role to make sure success.
