The African Refiners and Distributors Association (ARDA), represented by Anibor Kragha, ARDA Executive Secretary is pleased to have ended this year by attending the United Nations Framework Convention on Climate Change (UNFCCC) Conference of the Parties (COP 28) in Dubai, UAE. During the conference, we progressed our Association’s message on the need for a just, inclusive, sustainable energy transition plan that encompasses the peculiar energy poverty needs of developing African countries.

ARDA attended COP 28 as part of the Ipieca delegation. Ipieca is the UN-mandated global oil and gas association for advancing environmental and social performance across the energy transition. ARDA has applied to the UNFCCC to secure formal “Observer” status for COP 29 next year and looks forward to a favourable response.

ARDA had a preview of the views of COP 28 President, Sultan Al-Jaber, Chairman of the Abu Dhabi National Oil Company (ADNOC), at ADIPEC in October this year during a Leadership Roundtable hosted by NNPC Limited on the role of energy companies in accelerating a just transition for Africa. Mr Al-Jaber, the first head of a national oil company (NOC) to lead the COP process, stated that he would pursue a fair, just, fast, orderly, equitable, responsible and well-managed energy transition, which fully aligned with ARDA’s view on the kind of just, inclusive energy transition process that African nations need. In addition, COP 28 provided the first opportunity for all parties to evaluate the first-ever global stocktake on the status of climate action and progress against the long-term goals adopted by the Paris Agreement of 2015.

ARDA’s Panel Sessions @ COP 28 – Providing Just Transition Lens to Deliberations

ARDA served as a panelist on a total of five (5) panels during COP 28 in conjunction with Ipieca, International Emissions Trading Association (IETA), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), US Chambers of Commerce and International Business and the Oil Sustainability Program (OSP) of the Kingdom Saudi Arabia. These sessions provided pan-African insights on how just transition priorities must drive sustainable energy choices and SDGs, the need for cost-effective, near-term decarbonization technologies like low carbon aviation fuel (LCAF), bioLPG and clean cooking via LPG and renewables and catalyzing investments in Africa amidst the global stocktake.

Other key sessions where ARDA participated alongside its partners included the 2023 IMO Greenhouse Gas (GHG) Strategy to define a global level playing field for shipping decarbonization, scaling up public and private capacity to deliver the Paris Agreement Goals while launching the West African Carbon Market Hub, igniting change and youth empowerment through clean cooking, McKinsey’s Regional CEO panel to provide energy perspectives from around the world and several key sessions at the Saudi Green Initiative.

Key Takeaways from COP 28 – Balancing Energy Security and Transition is Critical

Overall, the COP 28 President made good on his plans to pursue a just, inclusive COP 28 process and buttressed his objective of “fixing” climate finance by announcing a $30 Billion Fund to bridge climate finance with a view to attracting $250 Billion of investment by 2030. ARDA is particularly pleased that the UAE Fund (Alterra) aims “to steer private markets towards climate investments and focus on transforming emerging markets and developing economies.” This action set the stage for the final Mitigation, Adaptation and Means of Implementation and Support recommendations, especially the goal to double collective provisions of climate finance for adaptation to developing countries (from 2019 levels) by 2025.

In addition, there was clear recognition of the Article 2 provisions which stipulate implementation to reflect equity and the principle of differentiated responsibilities and respective capabilities due to different national circumstances as well as the emphasis on the critical roles of finance, capacity building and technology transfer in enabling climate action. Furthermore, the recommendations underscored that just transitions can support more robust and equitable mitigation outcomes, with tailored approaches addressing different contexts. Finally, the specific needs and special circumstances of developing countries were recognized, especially those that are particularly vulnerable to adverse effects of climate change (as seen in Africa).

Next Steps – Impact on ARDA’s Policies and the African Energy Transition Roadmap

ARDA remains aligned with the key outcomes of COP 28 related to just, equitable, tailored energy transition process that considers the peculiar energy poverty and development requirements of African countries. As such, our Association will continue to promote the development and implementation of a just, robust, sustainable energy transition roadmap that focuses on the adoption of cleaner transport and cooking fuels in the near-term and the adoption of mature, cost-effective renewables solutions thereafter. This roadmap must be accompanied with a viable Finance Plan to ensure that the necessary investments required to deliver Africa’s just energy transition are made as envisioned.

To that end, ARDA plans to hold its first-ever Investment Forum during ARDA Week 2024 with a view towards sharing a register of investable pan-African energy infrastructure projects and ensuring that a viable Finance Plan is delivered to provide viable funding options for African refiners, marketers, distributors and regulators, as well as key players in the clean energy space. ARDA Week 2024 will be held from 22-24 April 2024 in Cape Town, South Africa, with the theme: “African Downstream Energy Transition – The Way Forward”.