Setting The Stage For A Greener Future

• Published date: 24 November 2022
• Subject Matter: Finance and Banking, Energy and Natural Resources, Financial Services, Fund Management/ REITs, Energy Law, Renewables
• Law Firm: ENSafrica
• Author: Ms Stefanie Busch and Nicola Reitze

Namibia struck up numerous alliances with key strategic partners during COP27, inching one step closer to becoming a key player in the global green hydrogen industry. We take a look at Namibia's progress during the 27th Conference of the Parties in Sharm El-Sheikh, Egypt.

Substantial climate finance by the EU

Namibian and EU representatives came prepared. Three days into the summit the two parties had already agreed on a sovereign loan facility of up to EUR500-million with a clear focus on facilitating Namibia's green hydrogen and renewable energy infrastructure. According to Namibia's President, Hage Geingob, the loan will represent the largest amount of concessionary finance to combat the effects of global warming which Namibia has secured to date. Financing will run through the European Investments Bank ("EIB").

Strategic partnership with the EU

Namibia and the EU concluded a strategic partnership on sustainable raw materials and renewable hydrogen. The memorandum signed by the President of the European Commission, Ursula von der Leyen, and President Geingob proposed a number of pillars for the cooperative effort. These include:

• integration of raw material and renewable hydrogen value chains;
• cooperation with the aim of leveraging ESG criteria that align with global standards;
• mobilisation of funding for the development of soft and hard infrastructure;
• capacity building and skills development across entire value chains; and
• cooperation regarding regulatory alignment, standards and certification.

The parties agreed to create an operational roadmap for 2023-2024 and to implement joint actions within six months of signature of the memorandum.

Launch of the SDG Namibia One Fund

Namibia's green hydrogen efforts will now be backed by a blended financing platform in partnership with Invest International (a fund supported by...