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European oil firms TotalEnergies, BP, Shell and Equinor today announced a $500mn joint investment commitment "over the coming years" for universal energy access in sub-Saharan Africa and south and southeast Asia.
The firms will jointly invest in a broad range of solutions, including solar home systems, mini/metro grids, clean cooking solutions, and enabling technologies such as e-mobility, energy storage and management solutions, TotalEnergies said. The investment is in support of the UN sustainable development goal 7, which aims for universal access to sustainable, affordable and reliable energy by 2030.
The timeline for the investment is unclear. "A global private equity firm with a strong track record in impact investing, has been selected to manage the joint investment," the firms said.
Investments in clean energy need to rise to around $4.5 trillion/yr by 2030 to be in line with an IEA scenario compatible with a 1.5°C temperature rise above pre-industrial levels, the lower limit under the Paris Agreement. The Paris climate accord seeks to limit global warming to "well below" 2°C above the pre-industrial average and preferably to 1.5°C.
Developing countries alone could require up to $1 trillion/yr by 2030 and $1.3 trillion/yr by 2035.
TotalEnergies reported a profit of $22bn in 2023, while Shell and BP posted profits of $20.3bn and $13.8bn, respectively. Equinor made a profit of $11.9bn in 2023.
The announcement was made as the UN Cop 29 climate summit is taking place in Baku, Azerbaijan. The Cop 29 presidency signalled earlier this year that it was working on a $1bn climate fund, capitalised by fossil fuel-producing countries and companies. The fund is due to be a public-private partnership, with "concessional and grant-based support to rapidly address the consequences of natural disasters" in developing countries, Cop 29 president and Azeri ecology and natural resources minister Mukhtar Babayev said earlier this year.
But the presidency has yet to announce progress on the plans, although finance announcements are typically expected to land during the summit's 'Finance day', which was yesterday. Cop 29 lead negotiator Yalchin Rafiyev said today that the presidency "received interest in the fund" and that it has not been delayed.
