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Africa needs a period of ‘carbon on credit’
7/1/2026
5 min read
Comment
A small, strictly time-limited emissions overdraft for Africa on its journey to end energy poverty is justified, argues Louis Strydom, Director of Growth and Development for Africa and Europe at Wärtsilä Energy.
From Lagos to Lusaka to Johannesburg, the continent of Africa echoes to the same sound: diesel generators humming in factory yards, hospital corridors and copper smelters. Nigeria alone has 22 million generators – eight times the capacity of its national grid. Meanwhile, Zambia’s mines face up to 21 hours of daily load-shedding; a nationwide blackout in November 2024 trapped miners underground at Copperbelt sites. South Africa endured over 200 days of power cuts in 2023, its utility spending ZAR 33bn (€1.65 bn) on emergency diesel.
Across sub-Saharan Africa, backup generators supply 9% of total electricity consumption – the highest share of any region on Earth.
This is not a policy choice. It is a symptom of broken grids – dirty, expensive and entirely unregulated. The question facing Africa is not whether to emit carbon on the way to energy prosperity, but how to do so as leanly as possible, and under what constraints.
The curve that Africa can flatten
The Environmental Kuznets Curve describes an upside-down U: pollution rises at low incomes, peaks, then falls as countries grow richer and regulate more. Every industrialised nation has climbed this curve. Africa’s 54 countries will climb it too – but it can peak lower and earlier than any predecessor. Renewables are cheaper than ever. Coal can be skipped entirely. Technology has improved. The conditions exist for a flatter hump than history has ever seen. The policy aim is not to avoid the climb, but to make it as lean as possible.
Current discourse forces a false choice. One camp says ‘no fossils, ever’ – a moral stance that ignores the millions of generators already humming. The other says ‘gas or nothing’ – tidier for funders, but impossible where pipelines do not exist. Neither confronts reality.
A better course would be ‘lean carbon’, a minimal, time-limited emissions overshoot to secure reliable power now, with covenants that force an early peak and a rapid decline. Think of it as carbon on credit, a capped facility rather than a blank cheque.
The question facing Africa is not whether to emit carbon on the way to energy prosperity, but how to do so as leanly as possible, and under what constraints.
The moral arithmetic
Sub-Saharan Africa, excluding South Africa, has contributed just 0.6% of cumulative global CO2 since the industrial revolution. Some 48 countries, home to more than a billion people, are responsible for barely half a percent of the emissions heating the planet. The continent holds 17% of the world’s people but produces under 4% of annual emissions. A time-boxed rise to perhaps 5% as grids stabilise would still leave Africa’s burden small by world standards – especially if the uptick displaces the diesel already burning in every city.
The obvious risk is lock-in: today’s bridge becomes tomorrow’s motorway. That is why the contract matters. A credible lean-carbon pathway requires hard limits: dated peak-and-pivot plans showing when emissions will crest; fuel-switch deadlines written into power purchase agreements; emissions-intensity floors that tighten over time; declining capacity payments as renewables and storage grow.
Ghana offers a template. In 2015, its 450 MW Karpowership floating power plant arrived burning heavy fuel oil (HFO). By 2019 it had switched to domestic gas – saving $170mn per year and cutting CO2 by roughly 30%. Senegal is following suit, converting its 335 MW Bel Air plant from HFO to LNG. These are bridges engineered to shorten the dirty phase, not invitations to permanent dependence.
Funders are shifting
Development finance is moving from blanket bans to conditional support. The African Development Bank’s 2024–2033 strategy confirms it will continue financing gas as a transition fuel where aligned with Paris goals and national climate plans. The World Bank is revamping its energy strategy to take a more ‘agnostic’ approach. Mission 300 – the joint African Development Bank-World Bank push to connect 300 million Africans by 2030 – has mobilised over $58bn in commitments.
The task now is to channel this capital into systems, not stand-alone assets – hybrids that cut diesel immediately and accelerate renewables on a published schedule. Procure on whole-system cost and carbon, not just cents per kilowatt-hour. Require modular plants whose value survives a fuel switch. Publish transparent emissions dashboards. Include stop-loss clauses if milestones slip.
Africa does not seek permission to pollute. It seeks permission to end energy poverty quickly while peaking emissions early. That is the carbon-on-credit bargain: a small, declining overdraft instead of a long, dirty plateau – and an honest covenant to pay it back fast.
The views and opinions expressed in this article are strictly those of the author only and are not necessarily given or endorsed by or on behalf of the Energy Institute.
- Further reading: ‘New financial models advance clean energy in Africa’. Find more about recent initiatives, from pay-as-you-go schemes to large-scale leasing and government funding.
- ‘Africa’s challenging energy transition journey’. What are the opportunities and challenges for energy producers, investors and policymakers in sub-Saharan Africa?
