- Senegal has secured a 2.5 billion euro investment deal to boost its renewable energy sector.
- The financing will be provided over an initial period of three to five years, starting in 2023.
Senegal has secured a 2.5 billion euro ($2.74 billion) investment deal with a group of developed countries to boost its renewable energy sector and accelerate its transition to a low-carbon economy.
The deal, announced at the Summit for a New Global Financial Pact in Paris, is part of the Senegal Just Energy Transition Partnership (JETP), which involves France, Germany, the European Union, the United Kingdom, and Canada.
The JETP aims to help Senegal achieve its goal of increasing the share of renewable energy in its installed capacity from 31% to 40% by 2030. The financing will be provided over an initial period of three to five years, starting in 2023, and may be increased later depending on Senegal’s needs and ambitions.
Senegal’s President, Macky Sall, said the deal would enable his country to exceed its renewable energy target and reduce its dependence on fossil fuels.
Sall emphasized the need for lower interest rates and more debt relief for low-income countries as the current global financing system is inadequate.
The JETP model was launched in 2021 with a $20 billion deal with Indonesia to help it phase out coal power plants. Since then, similar agreements have been signed with Vietnam, South Africa, and Senegal.
The JETPs are seen as a pivotal mechanism to mobilize public and private finance to support developing countries in their efforts to combat climate change and shift to cleaner energy sources.
The rich countries backing the JETPs are under growing pressure to fulfil their commitments to provide $100 billion a year in climate finance to poorer nations by 2020.