Senegal is expected to recommit a €2.5 billion ($2.67 billion) program aimed at reducing its dependence on fossil fuels during the COP29 climate conference in Azerbaijan this month, according to a key funding partner.
Progress on the initiative, known as the Just Energy Transition Partnership, which includes backing from some of the world’s wealthiest nations, had slowed after Senegal’s recent change in leadership, Bloomberg reported.
However, a renewed commitment, potentially in the form of an investment plan, is anticipated, as noted by Remy Rioux, CEO of France’s state development bank.
Originally announced by former President Macky Sall in June 2023, the program’s future was questioned following his party’s loss in the March presidential election, with Bassirou Diomaye Faye succeeding him.
This transition raised uncertainty not only for the energy transition pact but also for multi-billion-dollar oil and gas projects in Senegal involving BP Plc and Kosmos Energy Ltd.
If finalized, the agreement would see €2.5 billion channelled into Senegal from France, Germany, the European Union, the UK, and Canada over five years. The program would join similar deals targeting developing nations heavily reliant on fossil fuels for electricity.
South Africa, for example, committed to a $9.3 billion program in 2021 and is now implementing its investment plan, with €700 million in funding from AFD and loans from Germany’s KfW development bank. Indonesia and Vietnam followed suit with their agreements, valued at $20 billion and $15.5 billion, respectively.
