Mozambique is set to present an ambitious energy-transition plan at COP28 that aims to draw $80 billion — about five times its annual GDP — in foreign investment to boost its renewable-energy capacity.
President Filipe Nyusi is expected to lobby potential international partners and investors at the upcoming climate summit in Dubai. The investment will also go towards expanding the country’s hydropower capabilities and accelerate the switch to electric vehicles.
Mozambique’s plan reflects a major sticking point in climate negotiations: The transfer of investments from rich countries — blamed for a majority of planet-warming emissions — to poorer countries that bear the brunt of global warming. Wealthy nations finally hit a goal of providing $100 billion in climate finance to developing countries in 2022, two years behind schedule, recent data shows. “The financing flows remain inadequate against the magnitude of the impact that developing countries are dealing with,” a climate advocate in Africa told Bloomberg. The U.S. — the largest emitter of greenhouse gasses — has frequently failed on its climate finance commitments, but has said it will contribute to a new fund to finance extreme weather-driven damages, along with the EU.
A panel of experts who gathered to discuss climate resiliency in Africa this month agreed that projects seeking international financing must meet the genuine needs of the continent and drive domestic growth, African Business reported. Experts said that developers should focus on “de-risking projects” to appeal to global investors — including making it easier to hire foreign talent, encourage a robust public funding environment domestically, and conduct climate risk assessments on new projects.