TotalEnergies, BP, Shell, and Equinor have announced a joint investment commitment of $500 million aimed at improving energy access. The companies made this pledge at the COP29 climate summit in Azerbaijan, which has been overshadowed by political tension, following Argentina’s withdrawal from the event.
This investment targets increasing access to sustainable, modern energy sources, particularly in underserved regions such as Sub-Saharan Africa and Asia.
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Investment Focus Areas
The joint investment plan focuses on helping people gain access to electricity and cleaner cooking options. The energy majors aim to provide solutions that improve energy access and tackle energy poverty. Their goal is to support projects that align with the United Nations Sustainable Development Goal 7 (UN SDG 7), which aims to ensure affordable, reliable, and sustainable energy for all.
The energy companies explained that they would target regions with high energy access gaps, especially Sub-Saharan Africa and Southeast Asia. These areas have millions of people without electricity and clean cooking facilities. BP’s CEO, Murray Auchincloss, expressed hope that the investment would help address the significant global challenge of energy access.
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Challenges to Universal Energy Access
Despite global efforts, progress toward universal energy access has been slow. Rising energy prices and macroeconomic shocks have only made matters worse. In 2022, the number of people without access to electricity rose by 10 million, totaling 685 million people. Additionally, 2.1 billion people, mainly in developing regions, still lack clean cooking facilities, which is a major health and gender equity issue.
Joint Efforts to Tackle Energy Poverty
With their $500 million investment, BP, Equinor, Shell, and TotalEnergies aim to fund impactful projects that improve energy access in underserved regions. The companies will invest in solar home systems, mini-grids, clean cooking solutions, and related technologies like energy storage and e-mobility. These initiatives are expected to create jobs, improve health outcomes, and help meet the goals of UN SDG 7.
A global private equity firm, known for its impact investing expertise, will manage the joint fund. The firm’s role will be to ensure strategic allocation of capital and facilitate partnerships across various sectors, including governments, NGOs, and financial institutions.
This collaboration underscores the growing commitment of major energy companies to contribute to sustainable development and tackle the energy access crisis on a global scale.