|View printer-friendly version|
FTI Consulting Report Finds African Leaders Have Opportunity to Embrace a High-Growth, Low-Emission Future
New Report Underlines a Common Correlation between Economic Growth and Harmful CO2 Emissions
Investments in Renewable Energy Are Needed to Create Sustainable Growth with Minimal Emissions
The report introduces FTI Consulting’s Growth-Emissions Matrix, which shows the potential path that African nations could follow in order to achieve this ambition. The matrix ranks countries and regions into one of four groupings:
- Established Emitters: Countries and regions with high GDP and high CO2 emissions (e.g.
United States, Australia, UAE) have typically relied on CO2 intensive growth paths to drive development and improve electricity access for their citizens, using local, cheap resources on a mass scale.
- Climate Change Champions: Countries and regions with high GDP and low CO2 emissions (e.g. EU,
Sweden, Japan) have managed to successfully transition to lower-emission economies without sacrificing economic growth, mainly due to the higher use of renewable energy and nuclear power generation.
- Potential Renewables Revolutionaries: Countries and regions with low GDP and low CO2 emissions (e.g.
South Africa, Greece, China) are usually less economically developed and have lower energy consumption and access rates.
- Problematic polluters: Countries and regions with low GDP and high CO2 emissions (e.g.
South Korea) are few in number, since the electricity generation that causes CO2 emissions typically correlates with economic development. These nations must prioritize low emissions electricity and power generation to drive growth.
With electricity and heat production contributing almost half of all CO2 emissions globally, Sub-Saharan governments will need to find a path to secure long-term economic growth and improved living standards driven by a sustainable, affordable and secure low-emission energy network. The 2015 Paris Agreement stipulated that
The report states that African leaders have a window of opportunity in which to act and must take decisive actions, including:
- Creating an attractive environment for foreign direct investment in the power sector;
- Updating all energy generation, transmission and distribution policies to increase electricity access across the continent, and;
- Reducing fuel subsidies in favor of lower-cost new build renewable power generation facilities.
Petrus Marais, a Senior Managing Director and Head of FTI Consulting South Africa, added, “Nowhere in the world is the need to balance the security, access and sustainability of energy resources with the desire for economic development more pressing than in
+44 20 3727 1751
Source: FTI Consulting, Inc.