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Sub-Saharan Africa (SSA) is constrained by a perennial energy access deficit that makes it impossible for the region to meet the universal energy access by 2030 goal enshrined in SDG7. The current conjuncture characterized by the Russia-Ukraine conflict, the aftermath of the Covid-19 pandemic, and the rigors of climate change have only worsened the energy access gap in the region. Indeed, the number of people without access to electricity in SSA is expected to increase by 50 million by 2025. Current levels of climate finance fall short of Africa’s needs and are insufficient for achieving the target of universal access to affordable, reliable, sustainable, and modern energy by 2030. Access to reasonably priced and dependable modern energy services is a significant antecedent to achieving sustainable development goals. The energy situation in SSA necessitates a radical shift in how the region views energy and expedited efforts to increase energy and electricity access. In addition to increased multilateral finance and private sector investment in the region, SSA will have to rely on innovative financing methods that can help bridge the energy gap. This chapter will discuss some climate finance innovations that can play a crucial role in alleviating the funding gap for SDG7 in SSA. We will focus on impact investing and partnerships between large philanthropic organizations and the private sector. The Rockefeller Foundation’s Zero-Gap Initiative is based on scaling impact-driven investment products and catalyzing public–private partnerships. In the SSA region, the Zero Gap Initiative provides funding for Sustainable Energy for All (SEforAll) that works in partnership with the UN and leaders in government, the private sector, financial institutions, and civil society, to impel faster action towards the achievement of Sustainable Development Goal 7 (SDG7). In 2022, SEforAll launched a novel initiative viz., the Africa Carbon Markets Initiative (ACMI) that supports the development of voluntary carbon credit markets (VCMs) in the SSA region. The chapter offers a brief case study of the ACMI to understand how this novel initiative can be instrumental in achieving a faster and fairer energy transition for the SSA region. We conclude with some thoughts on the development of renewable energy sources over the longer-term that can engender more comprehensive socio-economic benefits for the region.

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Addressing the Funding Gap for SDG7 in Sub-Saharan Africa: Leveraging Innovation via Voluntary Carbon Markets

  • 章节

  • 发表日期：

    2025年

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  • Meenakshi Rishi,
  • Aditi Somani,
  • Lyne Nkoa

摘要

Sub-Saharan Africa (SSA) is constrained by a perennial energy access deficit that makes it impossible for the region to meet the universal energy access by 2030 goal enshrined in SDG7. The current conjuncture characterized by the Russia-Ukraine conflict, the aftermath of the Covid-19 pandemic, and the rigors of climate change have only worsened the energy access gap in the region. Indeed, the number of people without access to electricity in SSA is expected to increase by 50 million by 2025. Current levels of climate finance fall short of Africa’s needs and are insufficient for achieving the target of universal access to affordable, reliable, sustainable, and modern energy by 2030. Access to reasonably priced and dependable modern energy services is a significant antecedent to achieving sustainable development goals. The energy situation in SSA necessitates a radical shift in how the region views energy and expedited efforts to increase energy and electricity access. In addition to increased multilateral finance and private sector investment in the region, SSA will have to rely on innovative financing methods that can help bridge the energy gap. This chapter will discuss some climate finance innovations that can play a crucial role in alleviating the funding gap for SDG7 in SSA. We will focus on impact investing and partnerships between large philanthropic organizations and the private sector. The Rockefeller Foundation’s Zero-Gap Initiative is based on scaling impact-driven investment products and catalyzing public–private partnerships. In the SSA region, the Zero Gap Initiative provides funding for Sustainable Energy for All (SEforAll) that works in partnership with the UN and leaders in government, the private sector, financial institutions, and civil society, to impel faster action towards the achievement of Sustainable Development Goal 7 (SDG7). In 2022, SEforAll launched a novel initiative viz., the Africa Carbon Markets Initiative (ACMI) that supports the development of voluntary carbon credit markets (VCMs) in the SSA region. The chapter offers a brief case study of the ACMI to understand how this novel initiative can be instrumental in achieving a faster and fairer energy transition for the SSA region. We conclude with some thoughts on the development of renewable energy sources over the longer-term that can engender more comprehensive socio-economic benefits for the region.