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TotalEnergies, bp, Equinor, and Shell have announced a joint commitment to invest in line with the UN’s Sustainable Development Goal 7 (SDG7), which focuses on providing affordable, reliable, and sustainable energy for everyone. The four major energy companies will collectively invest $500 million to create a positive impact on energy access for people in key regions over the next few years.
Patrick Pouyanné, Chairman and CEO of TotalEnergies, said in a statement, “At TotalEnergies, we are deeply committed to making energy accessible to all. Around a third of our development in electricity in the coming years will be in emerging countries, which will enable about 40 million people to benefit from access to electricity. Furthermore, we are committed to investing 400 million dollars in Liquefied Petroleum Gas facilities to develop clean cooking solutions in Africa and India, which will help 100 million people access healthier, more sustainable and more reliable energy. With this new joint initiative with our peers, we are activating another lever to contribute to high-impact local projects to help achieve the United Nations Sustainable Development Goal 7 by 2030.”
Despite continued efforts, the global progress towards universal energy access has slowed down, especially due to recent economic challenges and rising energy prices. In 2022, the number of people without electricity worldwide grew by around 10 million, reaching a total of 685 million. Additionally, about 2.1 billion people, mostly in sub-Saharan Africa and Southeast Asia, still lack access to clean cooking facilities. This issue particularly affects women and girls, who often take on the majority of domestic duties.
bp, Equinor, Shell, and TotalEnergies have come together to tackle energy access challenges with a $500 million joint investment. Their goal is to fund high-impact projects primarily in Sub-Saharan Africa, South, and Southeast Asia, aiming to provide electricity and better cooking conditions to millions of people in underserved communities. The investment will focus on a variety of solutions, such as solar home systems, mini and metro grids, clean cooking technologies, and supporting innovations like e-mobility and energy storage.
Murray Auchincloss, CEO of bp stated,“It is early days, but we hope that by jointly investing, we will be able to contribute to wider efforts to tackle the very real challenge of access to energy. Over time, we believe it can help to create a more inclusive energy future for some of the many millions of people who lack that access today.”
Anders Opedal, President and CEO of Equinor, also mentioned, “This joint investment brings together four leading energy companies investing in emerging countries. We believe this effort will help close some of the energy access gaps, which is a key part in reaching the global ambition of a just and equitable energy transition.”
This initiative aligns with the UN’s SDG 7 and has the potential to bring added benefits like job creation and better health outcomes. A global private equity firm with expertise in impact investing will manage the joint fund. Their experience will ensure the investments are strategically directed to create both social and financial returns, while collaborating with governments, international organizations, financial institutions, the private sector, and philanthropic groups. This will include sharing knowledge, offering technical support, and addressing market challenges.
Wael Sawan, CEO of Shell, commented, “We want to support accelerated progress towards universal energy access as we believe it has the power to transform lives. This joint investment will help to do that. By working collectively to overcome key energy access challenges we can achieve sustained impact and drive real change.” |
