Ghana must rethink its energy future amid global transition – NGRI

Nafi Chinery, the Africa Director at the Natural Resource Governance Institute (NRGI), has called for urgent planning around Ghana’s energy transition.

She noted that only 7% of Ghana’s national revenue comes from fossil fuels. However, this revenue supports key sectors like education, agriculture, and healthcare. Despite this, Ghana plans to expand its petroleum sector and strengthen the Ghana National Petroleum Corporation (GNPC).

At COP27 in Egypt, Ghana launched its Energy Transition Investment Plan. Initially, it sought over $600 million in funding. Civil society organizations (CSOs) pushed back for more consultation and alignment with local realities. The plan was revised to target $550 billion by 2060 for net-zero emissions.

Chinery warned that global demand for fossil fuels is declining quickly. In 2021, the Ministry of Energy began coordinating a national energy transition plan with CSO support. Concerns arose about coordination, transparency, and inclusion for vulnerable groups like youth and disabled persons.

During a multi-stakeholder dialogue on May 21, she highlighted the contradiction between investing in fossil fuels and moving toward clean energy. “If buyers of our fossil fuel products are moving away, we need a plan,” she said. She emphasized scenario planning to protect the economy.

Chinery also mentioned geopolitical shifts affecting financing for African countries. “Donor funding is shrinking,” she stated, noting reduced aid from the U.S. and Europe due to domestic priorities. This makes it urgent for African nations to align their mineral and energy sectors sustainably.

“This meeting is timely,” she said. “We need to know where we are and how to finance Africa’s energy transition.”