Jane Olwoch

Hydrogen as an energy carrier is experiencing renewed interest due to its potential to deliver zero-carbon energy, especially considering the rising costs and depletion of fossil fuel resources. Financing green hydrogen projects, along with clear offtake strategies, can attract financial institutions to invest in green hydrogen initiatives, from advisory and piloting to up-scaling. Although substantial funding is required for a green economy transition, success hinges on mobilizing capital through smart public and innovative financing mechanisms. The growth of capital markets, green market penetration, and emerging initiatives such as microfinance, green stimulus funds, sovereign wealth funds, and carbon finance can enhance large-scale financing of green economies globally. However, these capital flows are currently insufficient for the green energy transition and need to be scaled up. This review article evaluates the most promising mechanisms for mobilizing finance to drive the green economy transition in sub-Saharan Africa over the coming decades. It also assesses the potential benefits and risks associated with transitioning to Net-Zero emission economies in sub-Saharan Africa, driven by hydrogen energy development. The review indicates that investment in hydrogen as an energy carrier for green hydrogen development in sub-Saharan Africa has the potential to become a significant alternative to fossil fuels, albeit with a risk factor of approximately 35%. This study aims to unlock sustainable green financing mechanisms for sub-Saharan Africa.

Renewable energy and clean energy have been on the global agenda for energy transition for quite a long time but recently gained strong momentum, especially with the anticipated depletion of fossil fuels alongside increasing environmental degradation from their exploitation and the changing climate caused by their excessive carbon emissions. Despite this, Africa’s pursuit to transition to a green economy using renewable energy resources still faces constraints that hamper further development and commercialization. These may include socio-economic, technical, political, financial, and institutional policy framework barriers. Although hydrogen demand is still low in Southern Africa, the region can meet the global demands for green hydrogen as a major supplier because of its enormous renewable energy resource-base. This article reviews existing renewable energy resources and hydrogen energy policies in the Southern African Development Community (SADC). The significance of this review is that it explores how clean energy technologies that utilize renewable energy resources address the United Nations sustainable development goals (UN SDGs) and identifies the hydrogen energy policy gaps. This review further presents policy options and recommends approaches to enhance hydrogen energy production and ramp the energy transition from a fossil fuel-based economy to a hydrogen energy-based economy in Southern Africa. Concisely, the transition can be achieved if the existing hydrogen energy policy framework gap is narrowed by formulating policies that are specific to hydrogen development in each country with the associated economic benefits of hydrogen energy clearly outlined.

Biodiversity & Ecology (B&E) - University of Hamburg - Biocenter Klein Flottbek and Botanical Garden