‘Why UK Investors are Keen on Renewable Energy Opportunities in Nigeria’

SOStainabilityWeekly

Edited by Oke Epia, E-mail: sostainability01@gmail.com  | WhatsApp: +234 8034000706

Interview:

Ashutosh (Ash) Shastri is the founder of a London-based international strategic management consultancy practice in the Energy Sector. He also serves as Advisor, Global Gas Centre, Geneva; Distinguished Fellow at the Washington DC-based Energy Policy Research Foundation Inc. (EPRINC); and visiting faculty at leading business schools in Europe, India and the USA. His expertise spans international oil and gas, electric utilities, natural gas/LNG, and downstream petroleum sectors. In the area of energy & climate policy, he has advised national governments and international organisations on international strategic negotiations in climate and energy security. Ashutosh serves as Master, The Worshipful Company of Fuellers, London’s livery company representing the energy industry with members drawn from diverse sectors, including electricity generation, renewables, nuclear, oil, gas, and associated supply chains. On the back of the Nigeria Climate Investment Summit (NCIS) held in London earlier in the year, Ashutosh spoke to SOStainability on Nigeria’s energy transition opportunities UK businesses are keen to tap into. Excerpts:

Tell us your personal areas of focus in terms of climate action, highlighting past, ongoing, and future projects and milestones

Previously, I have been a Sherpa to the President of COP15 at Copenhagen that was instrumental in making progress towards the Paris Agreement: my advisory work focused on engaging high-growth countries in Asia – China and India – on energy transition and climate action.

What should developing countries do differently to secure global climate finance for the transition? 

The most important thing is to assert without any ambiguity the right to economic growth and engage in a fact-based manner about the challenges inherent in building the energy system that is required to underpin that growth and achieving a gradual reduction in the carbon emissions trajectory. The second most important thing to do is to start building the national institutional architecture that is considered robust by private capital to absorb the available climate finance meaningfully.

Tell us about the Worshipful Company of Fuellers and its significance in the UK climate capital ecosystem

We are a City of London Livery Company representing all aspects of the energy industry in the City of London: we work closely with the CoLC in projecting the City as a global centre for climate finance. Our activities span the bridge between the policy community in Westminster and the financial community in the City. We are an apolitical organisation focused on fact-based analysis of the energy and technology industries in the country.

How can collaboration and initiatives like the NCIS advance the objectives of the fuellers?

Our members represent all dimensions of the energy industry – from oil and gas to nuclear to renewables, as well as leading-edge technology professionals engaged in hydrogen and transport electrification; we also have in our midst finance professionals focused on energy. Securing energy transition and decarbonisation-oriented investments in Nigeria and understanding the lessons learnt in the process is important for us, and a successful demonstration of this will enable greater engagement for the climate finance community in the City.

What kind of opportunities would your company and other UK institutional and individual investors be looking to engage with at NCIS and Nigeria generally?

Renewable energy financing; energy project development, and professional support opportunities, as well as opportunities to share international best practices with Nigerian policy makers and institutions are some of our important opportunity areas.

What would be your expectations engaging with investment opportunities in Nigeria?

We look forward to following through with actions (from our various existing programmes) to engage with the financial-industrial and policy community in Nigeria. Exchange of visits, professional development seminars and workshops in the UK and in Nigeria will be of immense interest for us.

What sort of reforms do you think should happen in the global climate political economy to improve and increase capital flows to the Global South?

The local/domestic industry-specific reforms that provide greater investor confidence and an identified pipeline of projects that enable absorption of climate finance are important, in our view.

How can South-South cooperation contribute to improved outcomes for the transition?

Primarily in the area of experience-expertise sharing within the policy and regulatory community will make a significant difference to the speed with which low carbon investment deployment could occur in the Global South. Existing institutional architecture can be further strengthened in our view.

Is there a role for private capital and wealthy investors from Africa in mobilising investments for transition projects?

Absolutely! If the investment is led from domestic private sources, the international investor confidence will significantly improve.

Have you been to Nigeria? Tell us about your fond memories, if you have any, and what you would look for to create such memories if you haven’t.

I have not yet been to Nigeria, although some opportunities that came earlier were missed. I am very much looking forward to visiting Nigeria. From what I hear from many of my Nigerian friends in London, it appears to me to be a very dynamic, modern, and friendly culture.