Uganda needs a just energy path for healthy economy

As the world increasingly recognises the urgent need to transition to cleaner energy sources, developing countries are still grappling with the challenge of balancing environmental concerns with economic growth.

Uganda, a country rich in natural resources, is in a unique position to demonstrate that cleaner energy and a healthy economy can co-exist.

Uganda is one of the counties in East Africa which has made significant discoveries of oil. While this is assumed to present an opportunity for economic growth and development, it also comes with significant climate change risks and challenges including growing debts associated with the development of the oil industry.

According to reports, Uganda’s debt has been rising steadily over the past years, part of it largely emanating from the government’s investments in the oil and gas industry. By 2021 the country’s debt stood at approximately $17 billion, with much of it being used to finance the construction of the pipeline and other infrastructure.

If the country’s assumption of cushioning debt burden through oil doesn’t materialise by 2025, the nation would have been left with a massive debt burden, grave climate change impacts, colossal deterioration of environmental quality, and a tainted national image.

To address these challenges, as a party to the Paris Agreement, Uganda should ensure its investment decisions are consistent with net zero emission goals and within the 1.5 degrees Celsius global warming limit by actively exploring and investing in alternative sources of energy.

One promising renewable energy source for the country is solar power. With an average of 5.1 peak sun hours per day, Uganda has significant solar potential. By investing in solar energy infrastructure, Uganda can reduce its reliance on hydroelectric power and diversify its energy sources.

The transition to cleaner energy sources in Uganda has several notable benefits. First, it reduces greenhouse gas emissions, contributing to global efforts to combat climate change. This is crucial given that the country has committed to reducing its emissions under the Paris Agreement.

 Secondly, it improves air quality, as the burning of fossil fuels for electricity generation leads to the release of pollutants that are harmful to human health.

Mr Mark Jason and his research colleagues at Stanford University in their recent renewable energy study put forward that switching the world to renewable energy would cost $62 trillion and only six years of payback. This transition would avoid utility blackouts and save consumers trillions of dollars.

Furthermore, investing in cleaner energy can drive economic growth in Uganda. The renewable energy sector has been hailed as a potential engine for job creation and economic development. By developing a robust solar energy industry, Uganda can create job opportunities in manufacturing, installation, and maintenance.

However, challenges remain in transitioning to cleaner energy in Uganda. Limited access to financing, high upfront costs of renewable energy projects, and insufficient infrastructure are some of the barriers that need to be addressed. The government needs to provide clear policies and incentives to attract private investments in the renewable energy sector. International cooperation and partnerships can also play a crucial role in supporting Uganda’s clean energy transition.

Uganda has the potential to become a regional leader in renewable energy adoption. By embracing cleaner energy sources such as solar power, the country can improve its energy security, reduce its carbon footprint, and protect the health of its citizens.

Moreover, the shift to renewable energy can also create new opportunities for economic growth and prosperity. With the right policies, investments, and international support, Uganda can demonstrate that a cleaner energy future and a healthy economy can indeed co-exist.

I, therefore, urge Uganda to demonstrate its commitment to environmental sustainability by signing the Glasgow Statement.

The statement is the first international political commitment to address public finance for oil and gas, among others.

Mr Okwi is the Programme Officer, Environment Governance Institute Uganda