WEF: Energy transition momentum slowing

The World Economic Forum's 2024 Energy Transition report has highlighted that economic volatility, heightened geopolitical tensions, and technological shifts are impeding the global energy transition to a more equitable, secure, and sustainable energy system. While 107 out of 120 countries assessed in the report showed progress, the overall pace of the transition has decelerated. Espen Mehlum, Head of Energy Transition Intelligence & Regional Acceleration at WEF, discussed the major headwinds affecting the transition momentum in a recent interview with CNBC Africa. Mehlum acknowledged that various factors are complicating the transition environment, including geopolitical tensions, economic fluctuations, and technological challenges. The report showcases leading countries like Sweden, Denmark, Finland, and Switzerland, as well as major economies such as Brazil, China, and the US, among the top performers due to their strong political commitment, investments in research and development, and increased adoption of clean energy. However, the report also emphasizes the need for more finance to accelerate the transition, especially in emerging and developing countries. While many African nations are recognizing the importance of transitioning to sustainable energy sources, the lack of sufficient finance remains a significant hurdle. Mehlum pointed out that sub-Saharan Africa has been the fastest improving region globally in recent years, indicating a positive trend. Countries like Mauritius, Namibia, Kenya, Tanzania, and South Africa are making progress in their energy transition efforts, but more investments and policies are needed to sustain this momentum. Despite Africa's abundance of renewable energy resources, the continent receives only a small fraction of global clean energy investments. Mehlum highlighted the critical need for a substantial increase in finance flow to support energy transition projects in Africa. He suggested that a combination of strong policies to attract investments, support from advanced economies, and improved credit ratings could catalyze the acceleration of clean energy investments on the continent. In conclusion, the WEF report underscores the importance of addressing the financial gap in energy transition and the need for collaborative efforts to drive progress. With the right mix of political commitment, business investments, and international support, countries can overcome the challenges and advance towards a more sustainable energy future.