By Lamé Verre
NAIROBI, Kenya, Sep 25 – Recently, the BRICS bloc of top emerging economies took historic action when it announced that six new nations, Saudi Arabia, Iran, Egypt, Argentina, Ethiopia, and the United Arab Emirates, have officially joined the bloc.
While a lot has already been made of the geopolitical motivations and implications behind this decision, perhaps the most overlooked outcome is the vital opportunity it has created to put the energy priorities of the Global South on the international agenda. Among these new members, The United Arab Emirates has quickly made this a reality.
Announced during the Africa Climate Summit, working in partnership with Africa50, the UAE unveiled a new investment initiative that will deploy a staggering US$4.5 billion into clean energy projects across the African continent.
This ambitious endeavour marks a significant step towards addressing the pressing energy challenges faced by nations in the Global South. Capital is ultimately what is going to dictate tangible change, and initiatives like this are the start of what should be a comprehensive strategy to level up the energy industries of less developed nations.
The new BRICS grouping is a unique combination of nations and an essential piece in this puzzle. Some emerging economies currently depend on fossil fuels to power their development ambitions, while others are leading in global investments and the development of renewable energies.
As a result, the BRICS bloc is now in an excellent position to make unprecedented progress in delivering a sustainable and just energy transition.
There is growing support for the sentiment that whilst we must continue to take decisive steps towards decarbonisation, the commitment to clean energy should not come at the cost of energy security and affordability for emerging economies.
To overcome this challenge, we desperately need a more inclusive understanding of the developing world’s energy priorities. The expansion of BRICS, described as “very energy-centric”, will be vital in helping us achieve this. With its newly expanded membership, the bloc now possesses the resources required to support a just energy transition and an essential understanding of the energy needs of emerging economies.
Indeed, developing a partnership towards an equitable, just transition was a central theme of the BRICS summit in Johannesburg. During the summit, the South African Department of Mineral Resources and Energy hosted the eighth annual meeting of BRICS energy ministers to strengthen energy cooperation amongst member states.
At the meeting, ministers and policymakers outlined potential areas of collaboration for improving access to secure and affordable energy while attempting to transition to cleaner energy systems.
As with any significant transformation, navigating the transition to net zero while ensuring the security and affordability of our energy supply will require collaboration between nations and historic levels of collaboration between sectors and industries.
Major industry events, including the agenda-setting ADIPEC – which will take place in the UAE next month – supplement the work done by significant blocs to strengthen collaboration by providing a vital window through which these critical dialogues can occur.
These events enable disruptive discussions on the energy industry’s future by convening the world’s leading policymakers and executives, thus offering a unique platform for developed and developing economies to voice their needs and concerns.
New and old BRICS members must embrace this opportunity to elevate the voices of developing nations and emerging economies.
After all, enabling a just transition can only be possible by creating a space where countries at different stages of development can understand and respect each other’s needs. With newfound influence over the global economy and energy landscape, this BRICS grouping is in an optimal position to do just that.
Verre is Co-founder & Advisory Board | Lean In Equity & Sustainability
