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Senegal Seals $2.7 Billion Green Energy Deal with Richer Nations

Senegal Seals $2.7 Billion Green Energy Deal with Richer Nations

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Today, on the occasion of the Summit for a New Global Financing Pact, which aims to build a new consensus for a more inclusive international financial system, Senegal and the international partners group (IPG) comprising France, Germany, the European Union, the United Kingdom and Canada are launching a Just Energy Transition Partnership (JETP) to support Senegal’s efforts to achieve universal access to energy and consolidate a low-carbon, resilient and sustainable energy system.

In a joint declaration, Senegal reaffirms, with the financial and technical support of international partners, its determination to strengthen the deployment of renewable energies in its energy mix as part of its Integrated Low-Cost Electricity Plan, with a view to reducing emissions from the sector, while enabling fair and resilient development.

The partnership will offer significant opportunities for investment from the private sector, sovereign wealth funds and philanthropic foundations.

To accelerate the deployment of renewable energies, international partners and multilateral development banks will mobilize 2.5 billion euros in new and additional financing over an initial period of 3 to 5 years, starting in 2023. Additional financing may be mobilized during and beyond this period to support Senegal’s ambitions.

This partnership will help accelerate the deployment of renewable energies, so as to increase the share of renewable energies in installed capacity to 40% of Senegal’s electricity mix by 2030, and the publication by COP28 of a vision for a long-term low greenhouse gas emission development strategy (LTS) due to be finalized in 2024. Senegal’s new nationally determined contribution, to be published at COP30, will reflect the enhanced climate ambition of this new energy strategy.

Senegal, in conjunction with the members of the international partners’ group (IPG), will draft an investment plan within twelve months, identifying the investments required and the opportunities to implement its vision of a just and equitable energy transition.

Today’s Just Energy Transition partnership with Senegal is the fourth, following the launch of partnerships with South Africa, Indonesia and Vietnam.

The President of Senegal Macky Sall said: “The multifaceted crises we are experiencing today are straining African economies, particularly in their significant efforts devoted to economic development, access to energy and industrialization. Diversifying our energy sources and our supply chains will increase our resilience. The partnership for a just energy transition (JETP) that we are establishing today with our partners will make it possible to support the Senegalese dynamic that we started several years ago of incorporating renewable energies into our energy mix and securing our energy system thanks to all our natural resources in line with the Paris Agreement.”

See related article: World Bank’s IFC and Sococim Partner for EUR 242 Million to Boost Low Carbon Cement Production in Senegal

The President of the French Republic Emmanuel Macron said: “France is proud to support the partnership for Senegal’s just energy transition. Thanks to the accelerated deployment of renewable energies, this partnership will enable Senegal to continue its economic development and provide access to energy for the entire population, while setting the country on a low-carbon trajectory. This partnership is in line with the priorities of the Summit for a new global financing pact to meet our common challenges: reconciling development and the fight against climate change.”

The Chancellor of the Federal Republic of Germany Olaf Scholz said: “Germany welcomes today’s signing of a Just Energy Transition Partnership (JETP) with Senegal. This is an important step that confirms Senegal’s ambition to expand renewable energies. This JETP is a milestone along the road to a Senegalese economy that is both climate neutral and socially just.”

The President of the European Commission Ursula von der Leyen said: “We are teaming up with Senegal to accelerate investments in clean energy infrastructure, to achieve a low carbon and climate resilient economy. Together, we are supporting a major energy transition, which will benefit people in Senegal and across the world – with access to affordable and reliable renewable electricity, good local jobs, and a healthier planet. I am proud that our Global Gateway strategy supports this partnership.”

The Prime Minister of the United Kingdom Rishi Sunak said: The UK is delighted to support the Just Energy Transition Partnership with Senegal. Senegal has ambitious plans to drive economic growth and create a more prosperous future, and this partnership will deliver vital investment into Senegal’s renewable energy infrastructure and help provide access to clean and affordable energy for all.”

The Prime Minister of Canada Justin Trudeau said: “It’s only becoming more and more clear that clean energy is a fundamental component to building an economy that works now and into the future. Climate change knows no borders, and as the world makes progress toward our collective goal of net-zero by 2050, we all need to come together – governments from different regions and the private sector – to drive innovative solutions that ensure our kids and grandkids have access to clean air and clean water, and good jobs. That’s what the JETP model will do in Senegal, and beyond.”

Michael R. Bloomberg, UN Secretary-General’s Special Envoy for Climate Ambition and Solutions and founder of Bloomberg L.P. and Bloomberg Philanthropies said: “The climate crisis will continue to worsen unless we take bolder action to help developing countries speed up investment in clean energy – and the more we bring the public and private sectors together, the faster we can make progressThe resources and capital this partnership will bring to Senegal will also help drive economic growth and improve public health in the country. It will build on work Bloomberg Philanthropies and partners are doing to spread access to clean energy in Africa and end coal use around the world – and build more momentum in the lead-up to COP28.”

Mark Carney, Co-Chair, GFANZ and UN Special Envoy on Climate Action and Finance said: “Public and private collaboration is critical to unlocking clean energy investment and supporting the net-zero transition in emerging markets and developing economies. GFANZ is working to remove the barriers to the flow of much-needed private finance to countries showing leadership on transition, particularly through JETPs. As part of this effort, the GFANZ Africa Network is mobilising private finance to support sustainable and affordable energy across the continent. We look forward to working with the Senegalese government and the IPG in support of the Senegal JETP.”

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