Onome Amuge
TotalEnergies, bp, Equinor, and Shell have committed to a joint investment of $500 million, a collective move to advance the United Nations’ Sustainable Development Goal 7 (SDG7), which seeks to ensure affordable, reliable, sustainable, and modern energy for all.
This strategic partnership, according to the oil conglomerates, aims to create a meaningful and lasting impact on energy access in key regions, with the funds dedicated to driving sustainable energy solutions over the coming years.
Despite ongoing efforts to achieve universal energy access, recent reports highlight a concerning stall in progress, exacerbated by macroeconomic shocks and escalating energy prices.
In 2022, the number of people without access to electricity rose by approximately 10 million, reaching 685 million globally. Additionally, around 2.1 billion people, primarily in sub-Saharan Africa and Southeast Asia, remain without access to clean cooking facilities.
This disparity disproportionately affects women and girls, who often shoulder the burden of domestic duties in these regions. These challenges underscore the urgent need for accelerated action and investment in sustainable energy solutions to meet the UN’s SDG7 targets.
In light of this, bp, Equinor, Shell, and TotalEnergies, stated that the recent collaboration is aimed at supporting transformative energy projects. The joint investment, they explained, is targeted at funding high-impact initiatives, primarily in Sub-Saharan Africa, South, and Southeast Asia, with the goal of providing millions of people in underserved communities with reliable electricity and cleaner cooking solutions.
The four energy giants stated that the $500 million commitment will be allocated to initiatives such as solar home systems, mini and metro grids, clean cooking solutions, and enabling technologies like e-mobility and energy storage.
This strategic investment is designed not only to advance progress toward UN SDG 7, ensuring universal access to affordable and sustainable energy, but also to generate broader social and economic benefits. These include job creation and improved health outcomes, providing a holistic approach to energy access challenges in underserved regions.
A renowned global private equity firm, with a proven track record in impact investing, has been chosen to manage the $500 million joint energy investment. Leveraging their expertise, the firm will guide strategic investments aimed at generating both social impact and financial returns.
The firm’s role will also include fostering collaboration across multiple sectors, engaging with governments, international organisations, financial institutions, the private sector, civil society, and philanthropies.
In addition to managing the capital, they will provide technical assistance, share insights, and work to overcome market barriers, ensuring the success of these high-impact energy projects.
Patrick Pouyanné, Chairman and CEO of TotalEnergies, reaffirmed the company’s strong commitment to making energy accessible to all. He noted that in the coming years, approximately one-third of TotalEnergies’ electricity development will focus on emerging countries, a move that will bring electricity to about 40 million people.
“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,” Pouyanné added.
Murray Auchincloss, CEO of bp remarked, “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.”
On his part, Anders Opedal, president and CEO of Equinor commented: “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.”
“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,” Wael Sawan, CEO of Shell stated.
