Excellency Mohamed Ould Cheikh El Ghazouani,
President of the Islamic Republic of Mauritania,
Honourable ministers,
Esteemed Dignitaries,
Ladies and Gentlemen,
It is a great pleasure to be present today in the historical city of Nouakchott, capital of the “land of the million poets”, and a great honour to address such a distinguished gathering.
I wish to extend my sincerest gratitude to His Excellency Mohamed Ould Cheikh Al Ghazouani, President of Mauritania, for hosting this important conference at a special juncture, two months after the SDG Summit and few days before COP28, and marking a significant moment as Mauritania approaches its milestone of becoming an LNG-exporter.
Additionally, my heartfelt thanks go to His Excellency Nani Ould Chrougha for his gracious invitation and for the opportunity to contribute to these important discussions.
Last month, on the 10th of October, the GECF Ministerial Meeting unanimously welcomed Mauritania into the GECF family. I would like to celebrate Mauritania’s accession and its imminent entry into the LNG market. By joining the GECF, Mauritania has gained access to shared knowledge, leveraged resources, and collaboration opportunities, which can further enhance the expansion of its gas sector and contribute to its socio-economic development. Leveraging its natural resources, Mauritania is poised to foster industrial growth, create jobs, develop a skilled workforce, and generate revenues to invest in critical sectors such as education, healthcare, and infrastructure, thereby charting a course for a prosperous and sustainable future.
We wish Mauritania peace, stability, and prosperity.
Excellencies,
Ladies and Gentlemen,
Energy drives and sustains our daily lives.
It plays a pivotal role in economic development, social progress, and environmental sustainability. In fact, achieving most of the United Nations' Sustainable Development Goals is inextricably linked to access to modern energy services.
Yet, in our world today, about 2.3 billion people, nearly one-third of the global population, still depend on traditional fuels like wood and charcoal for cooking and heating, while approximately 700 million people lack access to electricity.
Looking ahead, the demand for energy is projected to further increase, underpinned by an anticipated growth of 1.7 billion in the global population by 2050, a doubling of the global economic output, and an ever-growing aspiration for higher living standards.
The GECF forecasts a 22% increase in energy demand by 2050, despite significant improvements in energy efficiency.
Meeting these growing energy needs, while simultaneously improving air quality and reducing greenhouse gas emissions, entails harnessing a diverse array of energy sources and technologies. It calls for pragmatic approaches, innovative solutions, and global cooperation to ensure a just, equitable, inclusive and cost-effective energy transitions that leave no one behind.
In the delicate balancing act between socio-economic development and the protection of the environment and in the pursuit for energy security, equity, and sustainability, there is no one-size-fits all model.
Every energy pathway is nationally determined, in light of national circumstances, priorities, capabilities, and people’s choices.
Yet, in this intricate tapestry of energy pathways, one prominent thread stands out: natural gas
Natural gas, notably LPG, serves as a sustainable alternative to wood and charcoal for cooking and heating, thus reducing household pollution and curbing deforestation. Switching from coal to gas use improves air quality and cuts greenhouse gas and pollutants emissions. Natural gas provides backup and stability to power systems reliant on intermittent sources like wind and solar. It compensates for hydropower shortage, particularly in times of drought. In industrial high-temperature processes, it lowers emissions effectively. Furthermore, it is an essential component in fertilizer production, underpinning global food security.
The GECF projects a 36% increase of natural gas demand over the period to 2050, and its share in the global energy mix is expected to rise from 23% today to 26% in 2050.
Even under the accelerated decarbonisation scenario, demand for natural gas is projected to increase, albeit at a slower rate.
While natural gas is clean, it could be made even cleaner. The oil and gas industry, including in GECF member countries, is committed to reducing its environmental impact and has the necessary technical skills and resources for significant improvements. These include increasing operational efficiency, reducing gas flaring, lowering methane emissions, and investing in carbon capture, utilisation and storage, as well as developing low-carbon hydrogen and ammonia. Additionally, expanding carbon sinks through forestry and direct air capture is an area of focus.
Effective transformation of natural gas reserves into supply and the adoption of cleaner technologies hinge on substantial investment. Natural gas projects are capital-intensive, characterized by long lead times and extended payback periods. Additionally, the natural decline rate in oil and gas production is on average about a 4% annually, meaning that after ten years without investment, global supply will have declined by a staggering 30%.
Underinvestment leads to supply shortages and price instability, as evidenced in the second half of 2021 as well as a return back to coal as exemplified in 2022 with coal consumption reaching a record level.
Moreover, the fear of stranded assets can lead to underinvestment in cleaner technologies, as investors might be concerned about the longevity and future relevance of these technologies.
Contrary to the narrative that natural gas demand will peak soon and investment should be curtailed, it is critical to continue investing in natural gas for energy security, affordability, and sustainability.
In essence, the security of both supply and demand are the two sides of the same coin.
Excellencies,
Ladies and Gentlemen,
There is no other region where the issue of investment in natural resources is the most crucial than in Africa. The continent faces acute energy poverty, the most severe in the world.
Over 900 million people depend on wood and charcoal for cooking and heating, leading to an estimated 700,000 premature deaths annually due to household air pollution.
600 million Africans lack access to electricity, with the continent's average electrification rate at a mere 48%, starkly contrasting the global average of 91%.
Yet, Africa is rich in natural resources. According to the Union’s Energy Commission, the continent is endowed with approximately 7% of the world’s oil and gas reserves, while 70% of African exports are derived from oil, gas and mineral sectors, accounting for half of the continent’s GDP.
Harnessing the energy potential could achieve the Sustainable Development Goal of universal energy access by 2030. The African Development Bank estimates that this requires connecting 90 million people to electricity annually over the next seven years and transitioning 130 million people from dirty cooking fuels each year, at an estimated cost of $100 billion annually.
Africa's energy needs are projected to grow by 82% over the period to 2050, underpinned by a population increase from 1.4 to 2.5 billion people and an expected tripling of the economic output.
Furthermore, Africa’s greenhouse gas emissions represent a mere 4% of global emissions while home for a 17% of global population, and its forests provide a valuable carbon sink. In addition, Africa suffers disproportionally from climate change impacts, such as water scarcity, land degradation and desertification.
These facts make it clear needs to monetize its natural gas resources. Discouraging Africa from developing its natural gas resources under the disguise of environmental protection is misguided and inconsistent with the right to development and the UNFCCC principles of equity, common but differentiated responsibilities and respective capabilities, and that socioeconomic development and poverty eradication are the overriding priorities of developing country Parties.
African countries should not be penalised for using their natural resources to lift their people out of poverty. Facilitating Africa’s access to financial resources and support from multilateral financial institutions like the African Development Bank is vital and paramount.
Last year, COP27 was hosted by Egypt, a member of the GECF, and it culminated in a landmark achievement: the establishment of a loss and damage fund.
COP28 is set to commence in a few days in the United Arab Emirates—another GECF member. As expressed by President Mohamed Ould Cheikh El Ghazouani at the 78th Session of the UN General Assembly— COP28 is “a source of great hope”. It presents a pivotal opportunity not only to enhance the implementation of the UNFCCC and its Paris Agreement but also to reinforce Africa’s right to development and support for adaptation to the adverse impacts of climate change, such as Mauritania’s Great Green Wall initiative. A key focus should be on the commitments taken by the developed country Parties, particularly with regard financial support, technology transfer, and capacity building.
Excellencies,
Ladies and Gentlemen,
We look to Mauritania with great anticipation, as it embarks on the journey of harnessing its natural gas resources for the betterment of its people.
We, at the GECF, extend our best wishes to Mauritania in this promising path and reaffirm our commitment to providing unwavering support.
Thank you for your attention.