Ghana cannot risk stranded oil assets in energy transition – Deputy Energy Minister

A deputy Energy Minister, Andrew Egyapa Mercer, has stated that it is important for Ghana to consider several important factors in the global conversation about energy transition in order not for the country to risk being on stranded oil assets that are key for developmental agenda. According to him, although Africa remains the lowest emitter of carbon globally, the effects of stringent and rigid transition policies towards clean energy can affect Ghana’s oil and gas industries and ultimately impact economies in diverse.

Addressing stakeholders at town hall engagement in Takoradi as part of the national conversation currently under way on the subject.

“The Ghanaian economy is no exception and the objectives of a National Energy Transition Plan should however take into consideration the peculiar circumstances of Ghana’s abundant natural resources and development needs as articulated by President Akufo-Addo in Glasgow, Scotland during the COP26 conference earlier this year’, Deputy Minister asserted. “It would be wholly unfair for the world to demand that Africa abandons the exploitation of our resources needed to finance her development and help us to cope better with the threat of climate change, at a time when many countries on the continent have just discovered them,” Egyapa Mercer added.

Whilst acknowledging the importance and effects of climate change, the deputy Energy Minister said Ghana’s transition plan should therefore seek to position the oil and gas industry to play a more significant role in the development of the country.

This, he believes can be done through increased production of crude oil to generate more revenue and increased value addition to the economy through power generation and petrochemical industrialization, for instance.

Meanwhile, on February 22 2022, Vice President, Dr. Mahamadu Bawumia, launched the National Energy Transition Forum in Accra seeking to kickstart a national conversation on energy transition.

So far, the National Energy Transition Team has been to the Volta Regional capital Ho, and further engagements are planned for other regional capitals. The next stakeholder engagement which is being organised the Ministry of Energy will take at the Golden Tulip Hotel in Kumasi on March 1 2022.